With mortgage rates at 6.8% and the average home price hovering around $430,000–$440,000 (according to Redfin), it’s clear that owning a home isn’t as simple as it once was. Having said that, every U.S. city tells a different story when it comes to what you need to earn to make homeownership a reality.
San Jose
California has some really expensive areas. In San Jose, you’d need to earn about $454,000 a year to buy a home. However, in Lassen County, homes are a little cheaper, around $229,000. So, whether you’re dreaming of the city or the countryside, California has choices for everyone.
Los Angeles
In 2024, the price of a home in Los Angeles is really expensive, around $1.2 million. You will need to make about $237,500 a year to own one. Buying a home can be tough with these high prices and changing mortgage rates. If you’re thinking about buying in L.A., make sure to budget carefully to get your dream house.
Chicago
About 44% of homes in Chicago are listed at or below $265,000, which makes it a tad easier for people to buy a house here. Chicago’s homes are more affordable for people with a median income. Experts say buying a home in Chicago can be better than renting because rents are going up.
New York City
Here’s the deal: to buy an average home, which costs about $578,100, you’ll need to make around $129,500 a year. Why is it so expensive? New York is a big center for money and business, but don’t expect houses with a yard; most people live in apartments or small buildings.
Boston
If you want to buy a house in Boston, be ready for some serious sticker shock. Four years ago, buying a home in Massachusetts was much cheaper. But now, homes in Boston are even more expensive. You need $162,471 a year to buy a median-priced house. And this rate is 40% more than before!
Seattle
Seattle’s housing market is among the most costly in the country. With Seattle’s average income at $115,000, many people are finding it hard to buy a home. To buy a regular home in Seattle, you need to earn almost $214,000 a year. Homes cost around $698,000, and monthly payments are over $5,000.
Denver
Because prices went up 17.3% from last year, you now need about $158,187 a year to buy a home that costs around $580,000. With high mortgage rates and not many homes to choose from, finding a house in Denver is very tough. To manage, think about buying a condo or looking in cheaper areas.
Houston
In Texas, the money needed to buy a home varies by city. To comfortably buy a home in Houston, you need to make $95,374 a year. Monthly mortgage payments for a typical Houston home are now $2,188. This is better than the national average, but the cost has increased significantly since mortgage rates are rising everywhere.
Philadelphia
When compared to other big U.S. cities, Philadelphia is one of the easiest places to buy a home. Even though home prices are going up, it’s still not too expensive. To buy a typical home in Philadelphia, you need to make 80–90k a year. Is it worth it for the authentic Philly cheesesteak, though?
Austin
Austin has a reputation for being one of the fastest-growing cities in the U.S. A starter home in Austin usually costs around $330,000, and you’ll need to make about $118,201 each year to buy one. Even though home prices have dropped since 2022, the market is still tough.
Jacksonville
As the largest city in the United States by area, Jacksonville offers access to beautiful beaches and an urban lifestyle. With a small down payment on a $239,500 home and a 7% interest rate, your monthly payment would be about $1,926. Even though prices have gone up, homes here are still cheaper than in Miami or Tampa.
Detroit
A family needs to make only about $27,000 each year to buy a typical home, which is much less than the area’s average income of $56,339. Detroit is one of the cheapest places in the U.S. to own a home, and even people with lower incomes can afford it.
San Francisco
In contrast to Detroit, San Francisco is one of the hardest places to buy a home. A typical home costs $1.42 million, so a family needs to make over $265,000 a year to afford it. This is almost three times more than the city’s average income of $92,714.
Las Vegas
Famous for its fun entertainment and great weather, owning a home here is very expensive. A starter home costs $299,100, so you need to make about $92,011 a year. The average income in Las Vegas is only $78,212, so many people find it hard to buy a home. Its tourism industry might be booming, but housing? Not so much.
Dallas
To manage the costs of a typical home in Dallas, a household needs to make $121,398 a year. This is $53,000 more than what was needed in 2020. The big jump in the amount of money needed shows that home prices have gone up much faster than wages.
