For homebuyers looking the 14 biggest U.S. cities, the income needed to afford the median home ranges between $42,235 and $297,535.
Based on National Association of Realtors' data from the third quarter of 2018, CNBC finds the income requirements to afford buying a home with a 10 or 20 percent down payment. The city that requires the highest salary may be no surprise, San Jose, Calif. The income needed to afford the median home (priced at $1,300,000) with a 10 percent down payment is $297,535, while the salary needed for a 20 percent down payment is $264,476. In 14th-ranked Columbus, Ohio, buyers need to earn $47,514 for a median home priced $207,600 with a 10 percent down payment, and $42,235 with a 20 percent down payment.
Using the National Association of Realtors' Metropolitan Median Area Prices and Affordability and Housing Affordability index from the third quarter of 2018, CNBC Make It identified the income needed to manage to purchase a home. The data assumes a 4.8 percent mortgage rate for all areas and a monthly principal and interest payment limited to 25 percent of a resident's income.
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