The salary you need to earn to buy a home in 27 major US cities: San Francisco ranked most expensive metro area while Pittsburgh revealed as most affordable
San Francisco has solidified its reputation as the city with the least affordable housing, where you need to earn more than $142,000 to afford a median-priced home.
The West Coast hub of America’s booming tech industry was named the most unaffordable metropolitan area in the US by HSH.com, a mortgage tracking site, which estimated how much money a person must earn annually to afford the principal, interest, taxes and insurance payments in 27 metro areas across the country.
The mortgage research company based its estimates on the National Association of Realtors' fourth-quarter data for median home prices, and its own data on average interest rates for 30-year, fixed-rate mortgages and a 20 per cent downpayment.
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Nation's housing market: Mortgage tracking site HSH.com estimated how much salary a person must bring in to afford the principal, interest, taxes and insurance payments in 27 metro areas across the country
Golden city: A home buyer is San Francisco has to earn $142,448 to keep up with monthly payments of $3,323 for a median-priced house
Going for a song: Pittsburgh ranked the most affordable metro area in the country for the third quarter in a row, requiring a salary of under $32,000
Based on the estimates, Pittsburgh ranked the most affordable metro area in the country for the third quarter in a row, requiring a salary of under $32,000.
The historic ‘Steel City’ also had the lowest median home price at $135,000, and it tied Washington DC for the lowest mortgage rate at 3.98 per cent.
Potential homebuyers operating on a shoestring budget also can find affordable housing in Cleveland, St Louis and Cincinnati, where required salaries range between $32,010-$33,485.
On a national scale, with 20 per cent down, a buyer would need to earn a salary of $48,603.82 to afford the median-priced home.
Boston, New York, Los Angeles and San Diego landed on the high end of a spectrum, requiring salaries of $80,000 and higher to afford homes with median prices ranging between $383,000-$493,000.
The Big Apple, which has the highest mortgage rate in the nation at $4.22 per cent, was the fourth most unaffordable metro area on HSH's list, requiring homebuyers to earn $87,535 to meet the expense of a house with the median price of $393,000.
San Diego, California, retained its title as the second-most-expensive metro in the country thanks to a $95,432 salary requirement.
Big Apple: New York City, which has the highest mortgage rate at $4.22 per cent, was the fourth most unaffordable metro requiring homebuyers to earn $87,535
Runner up: San Diego, California, retained its title as the second-most-expensive metro in the country thanks to a $95,432 salary requirement
San Francisco, the home of the world's leading tech companies like Google and Apple, which has become notorious in recent years for stratospheric real estate prices, was once again crowned the king of unaffordable housing.
A median home price in the Bay Area was just under $743,000 last quarter, requiring a buyer to earn $142,448 a year just to keep up with monthly mortgage payments of $3,323.
The home-price gap between the San Francisco metro and Pittsburgh amounted to a whopping $607,000.
‘Home prices in metro areas throughout the country continue to show solid price growth, up 25 per cent over the past three years on average,’ Lawrence Yun, NAR chief economist, told HSH.com.
‘Low interest rates helped preserve affordability last quarter, but it’ll take stronger income gains and more housing supply to help meet the pent-up demand for buying.’
What $125,000 will buy you across America: A three-bedroom house in Richmond; a spacious Texas bungalow fit for a family... but look away now if you live in New York or San Francisco
From a four-bedroom bungalow in Atlanta all the way to a tiny studio apartment in New York City, these are examples of just some of the properties on the American market that will set you back less than $125,000.
The list, compiled by real estate website Zillow, shows that citizens can buy a spacious family home with a stylish interior for a relatively low price.
On the flipside however, in cities such as San Francisco, the confined, dinghy apartments on offer are an indication of how property prices are skyrocketing in some metropolitan areas.
The collection of budget homes is revealed as the National Realtors Association confirmed house sales across the country fell to a nine-month low in January.
Bargain: The homes where you get more for your money includes a blue, wooden-fronted three-bedroom and one bathroom house in Richmond, Virginia, which costs just $109,000
Cut-price: This three-bedroom bungalow on a tree-lined street in Waco, Texas, will set buyers back $110,000
The homes where you get more for your money include a blue, wooden-fronted three-bedroom and one bathroom house in Richmond, Virginia.
According to the real estate agent. the $109,000 house is nestled in the Historic Highland Park and comes with hardwood flooring, a family room and a spacious dining room.
Another is a three-bedroom bungalow on a tree-lined street in Waco. Texas. The description says the property 'needs updating' but the space inside means there is room to experiment - all for just $110,000.
However in San Francisco, first time buyers will have to fork out $127,000 for a dinghy studio apartment.
It is described by Realtors.com as 'luxury city living at its best' and is aimed at first time buyers. There are little luxuries in the condo, but some of the lower level apartments boast outdoor patios.
Similarly, a $109,000 studio in Harlem, New York City, boasts short walks to the nearest Subway stations and is listed as being 'small' but in 'good condition'.
The property markets in both cities, along with Los Angeles, have become virtually unstoppable.
A budget of $130,000 in the Big Apple may only be enough to purchase a sought-after parking space, let alone a house.
In San Francisco, if prospective buyers want to purchase a home in the richest third, they will have to spend more than $860,410.
Landscaped community: In Colorado Springs, Colorado, this two-bedroom, two-bathroom property is just just shy of $110,000 and even has a rear deck and garden
Even though many residents opt to rent apartments rather than buy family homes, landlords are raising rent by 12 per cent in San Francisco and 9 per cent in New York - which means many low-income buyers are priced out of both sides of the market.
For the same price of the tiny apartment in Harlem, prospective buyers can get their hands on a two-bedroom and two-bathroom suburban property in Colorado Springs in a 'beautifully landscaped setting'.
It also boasts an rear deck overlooking a garden and ample parking to entertain visitors. It is listed at $109,900.
For $125,000 there is also an adorable 4-bedroom, 2-bathroom bungalow in Atlanta, Georgia, described by realtors as inviting and stylish.
In Baton Rouge, Louisiana, $100,000 will land you a spacious two-bedroom and one-bathroom home where you can 'entertain guests' with ease.
The description reads: 'Have an indoor soiree in the spacious living room or bring the fun outdoors to the private fenced backyard and covered patio.'
A century-old, three- and 1.5-bath home in Louisville, Kentucky, costs only $120,000, while a three-bed, two-bath bungalow in Fort Wayne, Indiana - with enough room for a basketball hoop next to the garage will set buyers back just $115,000.
Confined: This dinghy studio apartment in San Francisco, meant for first time buyers, is listed at $127,000 and is described as 'city living at its best'
Small: This $109,000 studio in Harlem, New York City, boasts short walks to the nearest Subway stations and is listed as being 'small' but in 'good condition'
Suburban: This quaint $100,000, Baton Rouge, Louisiana, two-bedroom, one-bath home is is perfect for entertaining, according to realtors, with a covered patio and spacious interior
It was revealed on Monday that US existing-home sales slowed to their lowest pace in nine months in January, despite very low mortgage interest rates, the National Association of Realtors said Monday.
Total sales of used homes fell 4.9 percent from December to an annual rate of 4.82 million units, with the fall in both the single-family unit category and in condominiums.
Sales were 3.2 percent higher than a year earlier, but January 2014 was marked by a sharp downturn in economic activity when wide swaths of the eastern half of the country endured repeated severe winter storm.
'January housing data can be volatile because of seasonal influences,' said Lawrence Yun, NAR's chief economist.
'But low housing supply and the ongoing rise in home prices above the pace of inflation appeared to slow sales despite interest rates remaining near historic lows.'
Quaint: This two-bedroom and one-bath home in Fresno, California, is described as 'well-maintained' and is situated on a spacious lot
Great outdoors: This two-bedroom and one bath home in Spokane, Washington, is said to be well-suited to nature lovers, because of its proximity to the Centennial Trail and Spokane River
Total inventory of used houses for sale increased slightly in the month, and unsold inventory equalled a 4.7-month supply at the current sales pace.
The median price for an existing home was $199,600, 6.2 percent more than in January 2014.
Jennifer Lee of BMO Capital Markets called it 'clearly a disappointing report.'
'There were fewer sales of singles (-5.1 percent) and condos (-3.5 percent) although the former is still above levels a year ago.'
The real estate brokerage Redfin recently reported that sales of properties costing more $1 million climbed 9 percent year-over-year, based on data from the July to October quarters. Overall sales slipped 1.2 percent.
This three-bed, two-bath bungalow in Fort Wayne, Indiana - with enough room for a basketball hoop next to the garage will set buyers back just $115,000.
Historic: This century-old, three- and 1.5-bath home in Louisville, Kentucky, costs only $120,000
'Inviting and stylish': This four-bedroom home in Atlanta, Georgia, is on the market for $125,000