The only market that saw a decrease in affordability when comparing the fourth quarter of 2019 with the fourth quarter of 2018 was Philadelphia, which had a 0.27 percent increase in the salary needed to buy a median-priced home. In the last quarter of 2019, a salary of $59,055 was required to buy a median-priced home of $241,800 in that market.
In the D.C. area, the required salary to buy a median-priced home was $89,169 in the fourth quarter of 2019, which was 5.55 percent less than required during the fourth quarter of 2018. If buyers opt for a 10 percent down payment instead of a 20 percent down payment, a salary of $103,261 would be required to afford a median-priced home of $436,200.
The report found that the three least affordable markets are all in California. In San Jose, a salary of $227,232 is required to buy a median-priced home. In San Francisco, a $184,743 salary is required, and in San Diego, the salary needed to buy a median-priced home is $122,695. Each salary assumes a 20 percent down payment.
The most affordable metro area housing markets include Pittsburgh, where buyers need a salary of $36,581; Oklahoma City, where $37,832 is required; and Cleveland, where a salary of $39,146 is needed to buy a median-priced home. Each salary also assumes a 20 percent down payment.
In the New York City market, a salary of $101,998 is required to afford a median-priced home with a 20 percent down payment. In Boston, a salary of $101,895 is required to afford a median-priced home with a 20 percent down payment.
For the full analysis, click here.
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