flexiblefullpage - default
Currently Reading

How Much Does It Cost to Afford a Home in the Most Expensive US Cities?

billboard - default

How Much Does It Cost to Afford a Home in the Most Expensive US Cities?

Buyers now need more income to purchase a home, particularly in these metros

October 26, 2023
Aerial view of San Francisco
Image: Jose Vela / stock.adobe.com

As home prices and interest rates continue to rise, prospective homebuyers in the U.S. require an annual salary of $114,627 to afford a median-priced house, according to a recent report by Redfin. In the top 10 most expensive metro areas, the required income is more than $200,000, with the priciest two metros demanding incomes exceeding $400,000. San Francisco and San Jose, Calif., top the list with salaries of $404,332 and $402,287, respectively, CNBC reports. 

While Manhattan is the most costly U.S. city, the New York metro area as a whole ranks ninth due to buyers flocking to more affordable outlying areas. But even in those “cost-friendly” havens, buyers must earn about $197,734 to afford a home. 

Earning a high salary isn’t enough in some competitive markets. Buyers may find themselves competing against veteran homeowners who can make cash offers.

Some homebuyers are using their home equity to buy new homes in lower-priced areas instead of financing, to avoid an 8% mortgage rate, said [Daryl] Fairweather.

“That might be driving prices up and affordability down,” she said.

Read more


leaderboard2 - default

Related Stories

Housing Markets

Metros Where Housing Prices Have Doubled in Less Than 10 Years

Historical data show it's taken less than 10 years for home prices to double in 68 of the country’s 100 largest cities



The Disappearing Act That Is Middle-Income Housing

An expert weighs in on the diminishing supply of middle-income housing, which is particularly acute in California, and what to do about it

Market Data + Trends

A Look at Homeownership Rates Across the Nation

Data for homeownership rates in the 100 largest US cities show Port St. Lucie, Fla., in the top spot, while West Virginia is the state with the most homeowners

boombox1 -
native1 - default
halfpage2 -

More in Category

Delaware-based Schell Brothers, our 2023 Builder of the Year, brings a refreshing approach to delivering homes and measuring success with an overriding mission of happiness

NAHB Chairman's Message: In a challenging business environment for home builders, and with higher housing costs for families, the National Association of Home Builders is working to help home builders better meet the nation's housing needs

Sure there are challenges, but overall, Pro Builder's annual Housing Forecast Survey finds home builders are optimistic about the coming year

native2 - default
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.

Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.