Map Reveals: The salary you need to buy a home in 27 US Cities

The San Francisco housing market is officially OUT OF CONTROL. Mortgage site HSH.com reveals in their latest map how much annual income you need on average to afford a home in 27 US metropolitan areas. And San Francisco easily tops the list with a whopping $142k income needed! That's easily outpacing other hot markets like NYC and LA.

Now on a nationwide average, things don't look as bad with a salary of $48,000 needed to afford the typical 20% down mortgage that would get you a home. But once you move into the more populated metro areas on the East Coast and West Cost, minimum salaries needed are creeping up into the high 80s.

The calculation in this map assume the industry standard 28% of income going to the mortgage payment and a 20% down payment. These rules were often broken before the housing crisis which meant people were buying houses that were way above their means. The map assumes normal debt to income ratios and that's why these numbers may shock many people. Based on the East Coast estimates, only people making at least $50,000 per year are able to afford a home in Philadelphia. Once you move to cities like Boston, Washington or NYC, that salary won't buy you much of a home anymore.

While the map may surprise many and even scare first time prospective home buyers away, one should still consider the fact that we are still experiencing historically low interest rates and if you're able to save those 20% down payment and live in an area where 28% of your income is sufficient to cover a 30-year mortgage, buying is still a smart choice for many. Do your research on expected home prices over the next few years and have the necessary funds saved for closing costs and repairs that you will need to cover in the first years, and buying may still be the best move you can make.

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