10 Cities Requiring the Highest Income To Buy a Home: Report

Home prices have risen in recent years due to a lack of supply in the housing market and elevated mortgage rates. 

As of March, the median home sale price in the United States is $420,321, according to Redfin. This marked a 4.8% increase year-over-year. However, in some parts of the country, the price of buying a home is even steeper. 

A recent Realtor.com analysis found that, in 14 of the 50 largest metropolitan areas in the U.S., hopeful buyers would need to earn more than $150,000 annually to afford a median home. 

"It's desirable places to live, places that haven't built a lot of housing, and major cities that have a lot of higher-paying jobs," Realtor.com Chief Economist Danielle Hale said in the report. "You've either got to be very high-income or come into the market with a lot of equity."

To determine the income required to purchase a home in each city, Realtor.com looked at median home list prices in 50 of the largest metropolitan areas in the U.S. The figures also account for an assumed 20% down payment, local taxes and insurance rates, and a mortgage rate of 6.99%.

10 Cities With the Highest Income Needed to Purchase a Home

1. San Jose, CA

• Median Home List Price: $1,467,000

• Median Price Change (Year-over-Year): -4.50%

• Income Required To Purchase A Home: $361,000

• Change in Required Income (Year-over-Year): 1.10%

2. Los Angeles, CA

• Median Home List Price: $1,192,000

• Median Price Change (Year-over-Year): 8.40%

• Income Required To Purchase A Home: $298,000

• Change in Required Income (Year-over-Year): 14.70%

3. San Diego, CA

• Median Home List Price: $1,050,000

• Median Price Change (Year-over-Year): 5.00%

• Income Required To Purchase A Home: $259,000

• Change in Required Income (Year-over-Year): 11.20%

4. San Francisco, CA

• Median Home List Price: $1,027,000

• Median Price Change (Year-over-Year): -10.70%

• Income Required To Purchase A Home: $256,000

• Change in Required Income (Year-over-Year): -5.50%

5. Boston, MA

• Median Home List Price: $870,000

• Median Price Change (Year-over-Year): 3.70%

• Income Required To Purchase A Home: $226,000

• Change in Required Income (Year-over-Year)L 9.50%

6. New York, NY

• Median Home List Price: $769,000

• Median Price Change (Year-over-Year): 9.90%

• Income Required To Purchase A Home: $218,000

• Change in Required Income (Year-over-Year): 15.50%

7. Seattle, WA

• Median Home List Price: $775,000

• Median Price Change (Year-over-Year): -6.10%

• Income Required To Purchase A Home: $193,000

• Change in Required Income (Year-over-Year): -0.60%

8. Denver, CO

• Median Home List Price: $625,000

• Median Price Change (Year-over-Year): -8,00%

• Income Required To Purchase A Home: $165,000

• Change in Required Income (Year-over-Year): -2.90%

9. Sacramento, CA

• Median Home List Price: $650,000

• Median Price Change (Year-over-Year): -1.60%

• Income Required To Purchase A Home: $162,000

• Change in Required Income (Year-over-Year): 4.20%

10. Washington, DC

• Median Home List Price: $625,000

• Median Price Change (Year-over-Year): 0.80%

• Income Required To Purchase A Home: $159,000

• Change in Required Income (Year-over-Year): 6.60%

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