In which 11 US states must home buyers pay more than $200,000?

It is estimated that US home prices increased 3.5% in October 2023 nationally as a result of the decline of 10.9% of homes for sale and the decrease of 9.43% in the number of homes sold during this period; however, there are still many states in which it is still necessary to earn over $200,000 to purchase a home.

NAR’s quarterly study indicates that in order to qualify for a median-priced single-family home in the San Jose region, a household would need to earn $482,835 or more per year. The minimum income requirement for this market is the highest out of the 221 metro markets evaluated across the country.

A 20% down payment and an interest rate of 7.12% were used in the research to calculate the qualifying income that was needed to purchase a home in each metro area. Monthly principal and interest payments for a household cannot exceed 25% of their household’s gross income each month.

This might come as no surprise to you, but the cities that have the highest income requirements are the one’s with the largest metropolitan coastal centres with relatively costly residences. Because of California’s high demand for real estate, and the difficulty of finding it, the state is often known as having some of the most expensive property prices in the country.

A household with a household income of more than $200,000 must earn a minimum of $400,000 a year in order to be able to purchase a home at the median price in these 11 metro regions.

In the San Jose-Sunnyvale-Santa Clara area of California, the median home price is $482,835

California: $340,595 for the Anaheim-Santa Ana-Irvine area

California: $339,290 for the San Francisco-Oakland-Hayward area

Hawaii: $277,147 for Honolulu, Hawaii

The San Diego-Carlsbad, California area: $255,381

The cost of living in Salinas, California is $246,716

In Oxnard-Thousand Oaks-Ventura, California, the price is $240,504.

It costs $234,266 to live in Los Angeles-Long Beach-Glendale, California

In San Luis Obispo-Paso Robles, California, the amount is $232,257.

Amount: $223,879 in Boulder, Colorado

In Naples, Imokalee-Marco Island, Florida, the price is $200,964.

According to the survey, Decatur, Illinois, one of the least expensive metropolitan areas within the United States, is home to a significant number of reasonably priced homes than some of the most expensive neighbour hoods. In that city, a home buyer is only required to have a household income of $33,459 in order to purchase a property there.

In a similar manner, in some rural areas and smaller cities of the Rust Belt, housing costs are significantly lower than in many large cities in California. In Youngstown, Ohio, Charleston, West Virginia, and Erie, Pennsylvania, the minimum income that qualifies for a house is less than $50,000.