Find out which cities offer affordable housing options for aspiring homeowners

  • To afford the typical home in the U.S., a home buyer needs an annual income of $116,000
  • There are still some parts of the U.S. where aspiring homeowners can comfortably afford to buy even if they make less than $100,000
  • The top 10 metro areas with the lowest income required for the purchase of a median-priced home are Pittsburgh, Detroit-Warren-Dearborn, Cleveland-Elyria, Birmingham-Hoover, Buffalo-Cheektowaga, St. Louis, Rochester, Indianapolis-Carmel-Anderson, Louisville/Jefferson County, and New Orleans-Metairie
  • The most expensive housing markets require more than double a $100,000 income to buy a median-priced home
  • California metro areas like Los Angeles, San Diego, San Francisco, and San Jose have the highest income requirements for buying a home

Dreaming of buying a house in today’s challenging real-estate market? In this economy, you’ll need to make at least six figures — in most markets. But there are still some parts of the U.S. where aspiring homeowners can comfortably afford to buy even if they make less than $100,000, according to a new report from Realtor.com. Based on Realtor.com’s April housing data, to afford the typical U.S. home listed at a median price of $430,000, a person needs annual income of $116,000. That figure assumes that buyers are spending only 30% of their income on housing costs; making a 20% down payment on a home; taking on a 30-year fixed-rate mortgage; and paying property taxes, as well as home-insurance premiums. The 30-year mortgage rate averaged 7.29% for the week ending April 26, according to the Mortgage Bankers Association. But median household income was $74,850, according to the latest data from the U.S. Census Bureau. For an aspiring homeowner who earns less than six figures annually, the best destinations are in the Midwest, according to Realtor.com. The top 10 metropolitan areas with the lowest income required for the purchase of a median-priced home are Pittsburgh, Detroit-Warren-Dearborn, Cleveland-Elyria, Birmingham-Hoover, Buffalo-Cheektowaga, St. Louis, Rochester, Indianapolis-Carmel-Anderson, Louisville/Jefferson County, and New Orleans-Metairie. On the other hand, the most expensive housing markets all require more than double a $100,000 income to buy a median-priced house. California metro areas like Los Angeles, San Diego, San Francisco, and San Jose have the highest income requirements for buying a home.

Factuality Level: 7
Factuality Justification: The article provides information about the income needed to buy a median-priced home in different metropolitan areas in the U.S. It includes data from Realtor.com and other sources to support its claims. The article does not contain significant digressions, misleading information, sensationalism, or bias. However, it could benefit from more in-depth analysis and context regarding the real estate market and economic factors affecting housing affordability.
Noise Level: 3
Noise Justification: The article provides relevant information about affordable housing markets in the U.S. and includes data on income requirements for buying a home in different metro areas. It also discusses the reasons behind the housing affordability challenges in certain regions. However, there are some repetitive details and unnecessary information about the history of cities like Pittsburgh and Detroit that could be considered filler content.
Financial Relevance: Yes
Financial Markets Impacted: Real estate market
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the affordability of buying a house in different metropolitan areas in the U.S. It provides information on the income needed to purchase a median-priced home in various cities. While there is no extreme event mentioned, the article is relevant to the financial topic of real estate and housing affordability.
Public Companies: News Corp (NWSA), Zillow Group (ZG)
Private Companies: Realtor.com
Key People: Danielle Hale (Chief Economist at Realtor.com)

Track all markets on TradingView

Reported publicly: www.marketwatch.com