How Much Do You Need to Earn to Afford to Buy a Home?

The necessary income it takes to buy a median-priced home varies quite a bit across the country. In Cleveland, you could earn $22,000 a year and still afford a house, but in San Francisco, you need to earn six times that — $125,072.

HSH Associates, a publisher of mortgage data, evaluated 25 major metros to see how much income home buyers need to earn in order to purchase a median-priced home and cover the principal and interest payment on the mortgage. The survey uses median home price data from the National Association of REALTORS®’ third-quarter report, and subtracts a 20 percent down payment from those numbers. The list does not factor in taxes, mandatory insurance, or home owner fees.

Here are some of the cities where you would need to earn the least amount in order to purchase a median-priced home there:

• Cleveland: $22,348
• Cincinnati: $25,151
• St. Louis: $25,228
• Atlanta: $26,863
• Tampa: $26,930
• Orlando: $29,631

Here are some of the cities that require the highest salaries to afford a median-priced home:

• San Francisco: $125,072
• San Diego: $85,843
• Los Angeles: $79,177
• New York City: $71,255
• Boston: $68,956
• Washington, D.C.: $68,345

Source: “The Salary You Must Earn to Buy a Home in 25 Cities,” HSH.com (November 2013)