This is How Much You Need To Earn To Buy a House In Each City (And What’s Unattainable For The Average Worker)

Buying a house is one of the biggest investments the average worker will ever make. However, the average income needed to buy a house can vary a lot from city to city.

So, we set out to find where the American dream of homeownership is still possible for the average worker- and where it’s quite simply out of reach. First, we found the average home cost. From there we determined how much a monthly mortgage would be for it– and the minimum salary it would take to afford it.

The greater the negative difference between the salary needed to buy a home and the average income, the less attainable home ownership is.

The results? Homeownership is simply out of reach for the average worker in many cities. In fact, of the 175 cities we examined, 51 have a median income below the amount needed for home ownership to be attainable. Concurrently, the US Census shows that only 66% own their own home.

You can see a breakdown of how much it takes to afford a home in each major city (and how we determined this), but first, we break down the most (and least) affordable cities to buy a home.

10 Least Affordable Cities To Buy A Home

1. Los Angeles, California
2. San Francisco, California
3. Honolulu, Hawaii
4. New York City, New York
5. Oakland, California
6. Long Beach, California
7. Miami, Florida
8. Huntington Beach, California
9. Anaheim, California
10. San Jose, California

Unsurprisingly, buying a house in California can be an expensive undertaking. Californian cities, along with notoriously expensive cities such as Honolulu and NYC, dominate the list. While San Francisco has the most expensive home prices, Los Angeles residents earn on average only $62,142, about half of what the average San Franciscan earns. That is far less than the $130,157 needed to reasonably afford a home.

Where is the grass greener when it comes to home prices? Or at least it takes less of your green to become a homeowner?

10 Most Affordable Cities To Buy A Home

1. Detroit, Michigan
2. Akron, Ohio
3. Toledo, Ohio
4. Fort Wayne, Indiana
5. Fishers, Indiana
6. Pearland, Texas
7. Cedar Rapids, Iowa
8. Lee’s Summit, Missouri
9. Cleveland, Ohio
10. Grand Prairie, Texas

Midwestern cities remain one of the most affordable places for home ownership. Low home costs and reasonable salaries create an economic situation where home ownership is highly achievable.

HOW WE DETERMINED THIS

This one was fairly simple. We started by finding out the average home value in each major city from the US Census.

We defined major city as the 175 cities with the most owner-occupied housing units with a mortgage.

Home costs will vary within a city. Similarly, some buyers choose more or less expensive houses based on income and personal taste. However, since we are going for a top look at housing and income, the average seemed like a good starting point.

From there, we applied the standard 30-year mortgage with a 3.9% interest rate to work out the monthly payment. We did not take into account PMI, taxes, down payment size, or home insurance, since those differ greatly based on individual circumstances and loan type.

Since it is genuinely recommended for median income not to surpass 28% of gross income, we found the minimum income it would take for the monthly mortgage to be below 28%. That gave us the minimum income needed to buy a home.

Of course, to better understand how reasonable these numbers are, we then took into account median income. Some cities with a high price tag have high incomes that grow in step. However, in others, even lofty salaries don’t pay the bills.

The greater the negative difference between median income and the minimum amount needed to afford the average home, the less affordable home ownership is. Similarly, the greater the positive difference between median income and minimum income needed, the more affordable home ownership is.

Keep scrolling to see the full data.

BREAKING THE BANK TO LIVE THE AMERICAN DREAM

While some cities offer affordable homeownership, in other cities the American dream really is just a dream- and far from reality.

However, ultimately buying a home is a deeply personal choice. The size, location, and style will all vary based on the home buyer. For example, an affordable home in your city might not be in your ideal school district, and one that is might be far beyond your personal budget.

Similarly, a mountain of student debt or other financial obligations might mean you need to spend well below 28% of your income on housing. And as any homeowner knows, the mortgage is far from your biggest expense.

At the end of the day, these numbers are a big-picture look at a situation that can be very different on a personal level.

You can see the full breakdown of our numbers below, from least affordable to most:

The Least To Most Affordable Cities For Homeownership

Rank	City	Average Home Price	Minimum Income Needed	Actual Median Income
1	Los Angeles, California	$642,400	$130,157	$62,142
2	San Francisco, California	$1,118,200	$226,586	$112,449
3	Honolulu, Hawaii	$685,000	$138,814	$71,465
4	New York City, New York	$609,700	$123,557	$63,998
5	Oakland, California	$697,400	$141,300	$73,692
6	Long Beach, California	$559,000	$113,271	$63,017
7	Miami, Florida	$334,100	$67,714	$39,049
8	Huntington Beach, California	$793,300	$160,757	$95,046
9	Anaheim, California	$583,700	$118,286	$71,763
10	San Jose, California	$882,500	$178,843	$109,593
11	Irvine, California	$841,700	$170,571	$105,126
12	San Diego, California	$608,100	$123,214	$79,673
13	Carlsbad, California	$840,400	$170,314	$110,478
14	Santa Ana, California	$501,400	$101,614	$66,145
15	Boston, Massachusetts	$534,200	$108,257	$71,115
16	Seattle, Washington	$666,200	$135,000	$92,263
17	Santa Rosa, California	$545,100	$110,443	$75,630
18	Washington DC	$611,400	$123,900	$86,420
19	Fremont, California	$940,800	$190,629	$133,354
20	Oceanside, California	$511,300	$103,629	$72,697
21	Bellevue, Washington	$830,900	$168,386	$120,456
22	Thousand Oaks, California	$738,100	$149,571	$109,378
23	Yonkers, New York	$420,400	$85,200	$63,849
24	Concord, California	$569,400	$115,371	$89,564
25	Chula Vista, California	$512,500	$103,843	$81,272
26	New Orleans, Louisiana	$260,000	$52,671	$41,604
27	Simi Valley, California	$595,200	$120,600	$99,151
28	Portland, Oregon	$418,000	$84,686	$71,005
29	Arlington, Virginia	$704,800	$142,800	$120,071
30	Fort Lauderdale, Florida	$348,000	$70,500	$59,450
31	Reno, Nevada	$342,100	$69,300	$58,790
32	Eugene, Oregon	$294,200	$59,614	$50,962
33	Denver, Colorado	$393,200	$79,671	$68,592
34	Alexandria, Virginia	$576,800	$116,871	$100,939
35	Corona, California	$474,800	$96,214	$83,752
36	Fort Collins, Colorado	$372,800	$75,557	$65,866
37	Rancho Cucamonga, California	$506,900	$102,729	$90,953
38	Sacramento, California	$343,300	$69,557	$62,335
39	Santa Clarita, California	$547,700	$111,000	$99,666
40	Scottsdale, Arizona	$483,800	$98,014	$88,213
41	Jersey City, New Jersey	$387,900	$78,600	$70,752
42	Lakewood, Colorado	$363,200	$73,586	$66,740
43	Riverside, California	$372,500	$75,471	$69,045
44	Atlanta, Georgia	$317,800	$64,414	$59,948
45	Fontana, California	$377,300	$76,457	$72,918
46	Paradise, Nevada	$248,200	$50,314	$48,312
47	Salt Lake City, Utah	$311,500	$63,129	$60,676
48	Stockton, California	$277,900	$56,314	$54,614
49	Roseville, California	$448,400	$90,857	$89,082
50	Richmond, Virginia	$234,800	$47,571	$47,250
51	Orlando, Florida	$256,200	$51,900	$51,757
52	Fresno, California	$248,700	$50,400	$50,432
53	Modesto, California	$286,800	$58,114	$59,287
54	Charleston, South Carolina	$331,100	$67,071	$68,438
55	Tampa, Florida	$258,200	$52,329	$53,833
56	Moreno Valley, California	$316,500	$64,114	$66,134
57	Austin, Texas	$339,600	$68,829	$71,576
58	Spring Valley, Nevada	$273,500	$55,414	$58,388
59	Chicago, Illinois	$272,700	$55,243	$58,247
60	Vancouver, Washington	$287,700	$58,286	$61,714
61	Pembroke Pines, Florida	$318,600	$64,543	$68,745
62	Arvada, Colorado	$387,000	$78,429	$84,717
63	Las Vegas, Nevada	$265,600	$51,986	$56,354
64	Palmdale, California	$286,000	$57,943	$62,865
65	Westminster, Colorado	$343,800	$69,686	$76,142
66	Aurora, Colorado	$293,800	$59,529	$65,100
67	Salem, Oregon	$252,300	$51,129	$55,920
68	Tacoma, Washington	$278,500	$56,443	$62,358
69	Dallas, Texas	$229,000	$46,414	$52,580
70	Elk Grove, California	$407,200	$82,500	$93,780
71	Henderson, Nevada	$320,200	$64,886	$74,147
72	Baton Rouge, Louisiana	$189,800	$38,443	$44,470
73	Boise City, Idaho	$255,300	$51,729	$60,035
74	Phoenix, Arizona	$244,300	$49,500	$57,459
75	Mesa, Arizona	$246,700	$49,971	$58,181
76	Colorado Springs, Colorado	$272,800	$55,286	$64,712
77	Thornton, Colorado	$334,900	$67,843	$79,411
78	Minneapolis, Minnesota	$256,500	$51,986	$62,583
79	Glendale, Arizona	$224,800	$45,557	$55,020
80	Shreveport, Louisiana	$159,200	$32,271	$39,090
81	Norfolk, Virginia	$209,200	$42,386	$51,590
82	Bakersfield, California	$253,100	$51,300	$63,139
83	Nashville-Davidson, Tennessee	$238,700	$48,386	$59,828
84	Centennial, Colorado	$433,600	$87,857	$109,324
85	North Las Vegas, Nevada	$236,900	$48,000	$59,835
86	Houston, Texas	$205,500	$41,657	$52,338
87	Enterprise, Nevada	$317,100	$64,243	$81,461
88	Durham, North Carolina	$227,800	$46,157	$58,905
89	Philadelphia, Pennsylvania	$176,600	$35,786	$45,927
90	Chattanooga, Tennessee	$173,100	$35,057	$45,527
91	Anchorage, Alaska	$322,100	$65,271	$84,928
92	Newport News, Virginia	$200,400	$40,629	$53,215
93	St. Petersburg, Florida	$214,600	$43,500	$56,982
94	Meridian, Idaho	$286,100	$54,343	$71,389
95	Madison, Wisconsin	$245,300	$49,714	$65,332
96	Albuquerque, New Mexico	$198,600	$40,243	$52,911
97	Spokane, Washington	$187,500	$38,014	$50,306
98	Highlands Ranch, Colorado	$466,900	$94,629	$125,454
99	Tucson, Arizona	$161,500	$32,743	$43,425
100	Chandler, Arizona	$306,800	$62,186	$82,925
101	Cape Coral, Florida	$227,500	$46,114	$61,599
102	Virginia Beach, Virginia	$279,000	$56,529	$76,610
103	St. Paul, Minnesota	$210,600	$42,686	$57,876
104	Raleigh, North Carolina	$244,800	$49,586	$67,266
105	Peoria, Arizona	$272,500	$55,200	$75,323
106	Cincinnati, Ohio	$145,600	$29,486	$40,640
107	Charlotte, North Carolina	$224,100	$45,429	$62,817
108	St. Louis, Missouri	$155,200	$31,457	$43,896
109	Chesapeake, Virginia	$277,800	$56,271	$78,640
110	Huntsville, Alabama	$193,600	$39,214	$55,305
111	Surprise, Arizona	$241,300	$48,900	$69,076
112	Knoxville, Tennessee	$140,500	$28,457	$40,341
113	Cary, North Carolina	$362,100	$73,371	$104,669
114	Port St. Lucie, Florida	$209,200	$42,386	$60,587
115	Baltimore, Maryland	$172,300	$34,929	$50,379
116	Hampton, Virginia	$191,400	$38,786	$56,287
117	Gilbert, Arizona	$328,800	$66,643	$96,857
118	Plano, Texas	$323,300	$65,529	$95,602
119	McKinney, Texas	$315,300	$63,900	$93,354
120	Jacksonville, Florida	$183,700	$37,243	$54,701
121	Naperville, Illinois	$422,900	$85,714	$125,926
122	Lexington-Fayette, Kentucky	$189,400	$38,400	$57,291
123	Little Rock, Arkansas	$170,300	$34,500	$51,485
124	Columbus, Georgia	$153,400	$31,071	$46,408
125	Overland Park, Kansas	$285,400	$57,814	$86,487
126	Winston-Salem, North Carolina	$149,000	$30,171	$45,750
127	Sioux Falls, South Dakota	$193,200	$39,129	$59,912
128	Greensboro, North Carolina	$157,300	$31,886	$48,964
129	Mobile, Alabama	$134,900	$27,343	$42,321
130	Frisco, Texas	$398,700	$80,786	$127,055
131	Kansas City, Missouri	$169,200	$34,286	$54,194
132	San Antonio, Texas	$163,100	$33,043	$52,455
133	Fayetteville, North Carolina	$139,700	$28,329	$45,024
134	Tulsa, Oklahoma	$147,400	$29,871	$47,650
135	Laredo, Texas	$147,200	$29,829	$47,593
136	Louisville/Jefferson County, Kentucky	$163,600	$33,171	$53,436
137	Milwaukee, Wisconsin	$126,900	$25,714	$41,838
138	Fort Worth, Texas	$187,100	$37,929	$62,187
139	Buffalo, New York	$112,000	$22,714	$37,354
140	Oklahoma City, Oklahoma	$166,700	$33,771	$55,557
141	Sterling Heights, Michigan	$194,200	$39,343	$64,833
142	Lubbock, Texas	$150,700	$30,557	$50,453
143	Indianapolis, Indiana	$142,900	$28,971	$47,873
144	Lincoln, Nebraska	$171,900	$34,843	$57,746
145	Birmingham, Alabama	$110,800	$22,457	$37,375
146	Pittsburgh, Pennsylvania	$144,100	$29,186	$48,711
147	El Paso, Texas	$140,100	$28,371	$47,568
148	Grand Rapids, Michigan	$147,400	$29,871	$50,103
149	Clarksville, Tennessee	$156,900	$31,800	$53,604
150	Columbus, Ohio	$157,100	$31,843	$53,745
151	Arlington, Texas	$174,400	$35,357	$60,571
152	Rochester, Minnesota	$207,400	$42,043	$73,106
153	Corpus Christi, Texas	$158,700	$32,143	$56,333
154	Augusta-Richmond, Georgia	$119,200	$24,171	$42,592
155	Omaha, Nebraska	$163,800	$33,171	$60,092
156	Memphis, Tennessee	$112,300	$22,757	$41,228
157	Wichita, Kansas	$141,900	$28,757	$52,620
158	Amarillo, Texas	$141,700	$28,714	$52,725
159	Garland, Texas	$164,400	$33,300	$61,211
160	Olathe, Kansas	$241,400	$48,900	$90,435
161	Montgomery, Alabama	$127,900	$25,929	$48,011
162	Joliet, Illinois	$186,800	$37,843	$70,509
163	Aurora, Illinois	$189,900	$38,486	$71,749
164	Warren, Michigan	$129,100	$26,143	$49,619
165	Des Moines, Iowa	$138,300	$28,029	$53,525
166	Grand Prairie, Texas	$171,900	$34,843	$67,388
167	Cleveland, Ohio	$78,500	$15,900	$30,907
168	Lee’s Summit, Missouri	$227,800	$46,157	$89,969
169	Cedar Rapids, Iowa	$145,200	$29,443	$58,511
170	Pearland, Texas	$252,000	$51,043	$104,504
171	Fishers, Indiana	$263,500	$53,400	$109,454
172	Fort Wayne, Indiana	$117,900	$23,871	$49,411
173	Toledo, Ohio	$87,300	$17,700	$37,752
174	Akron, Ohio	$85,700	$17,357	$38,739
175	Detroit, Michigan	$66,300	$13,414	$30,894

Now Try Zippia’s Job Search