SAN DIEGO (KGTV) — Homebuyers across the country need to earn substantially more money than they did a year ago to buy a home. The increases are especially big in California, which includes America's Finest City.
Buyers currently have to be able to afford a $5,314 mortgage payment to buy a median-priced home in San Diego, according to a new report by Redfin, a real estate mortgage brokerage.
The Redfin report said that buyers need to earn $212,577 annually, that’s up 43.4% from $148,225 a year earlier.
This news comes as salaries are not keeping up with that demand. Redfin notes that hourly wage has only gone up 5% over the past year, and inflation is still straining wallets.
The study took the median price of a home in each market and measured it against the annual median income for October. The calculation was based on the assumption that people paid no more than 30% of their incomes to own a home.
The incomes buyers need to purchase a home in San Francisco and San Jose are the highest in the country. San Francisco buyers need to earn $402,821 annually, followed by San Jose at $363,265, and Oakland at $247,559 annually which is up 36.2% from last year.
The least expensive market is in one of America’s old industrial cities — Detroit. The income figure is $48,435 to afford the area’s median-priced home, but that’s still up 42.3% from a year ago.
Redfin also has an affordability calculator where prospective buyers can input your household income, monthly debts, how much you can give on a down payment, and where you’re looking to buy to find out realistically what you can afford.
