HousingWire reports that GOBankingRates produced a study on the affordability of the nation’s 50 largest metro areas. Even in the least expensive markets, residents are coming short of the income needed to not only afford a home, but to also save some leftover earnings.
For instance, El Paso was determined to be the most affordable metro, where the income needed to live comfortably was only $40,393. But, the city’s median income was only a hair higher than that, at $42,772. Of the 50 metros, only 11 had median incomes higher than an income that could be considered comfortable.
The survey applies the 50-30-20 budgeting rule, which says 50% of income should cover necessities, 30% should cover discretionary items and 20% should be put in savings.
Miami, New York City, and San Francisco had the largest discrepancies, where the median income was considerably lower than the recommended comfortable income. On the other side, Virginia Beach, Va., Arlington, Texas, and Colorado Springs, Colo., had the largest surpluses, where median incomes exceeded the comfortable income amount.