You would need to make $468,252 to afford a house in the San Jose area, the highest of all 221 U.S. metro markets surveyed, according to NAR’s quarterly report.
San Jose is by far the most priciest place to buy a home, even among 10 other metro areas where qualifying income exceeds $200,000. Here’s a look at the most expensive markets.
- San Jose-Sunnyvale-Santa Clara, California: $468,252
- Anaheim-Santa Ana-Irvine, California: $347,651
- San Francisco-Oakland-Hayward, California: $334,676
- Honolulu, Hawaii: $286,093
- Salinas, California: $265,895
- San Diego-Carlsbad, California: $249,228
- Oxnard-Thousand Oaks-Ventura, California: $245,269
- San Luis Obispo-Paso Robles, California: $244,011
- Los Angeles-Long Beach-Glendale, California: $236,601
- Boulder, Colorado: $227,237
- Naples-Immokalee-Marco Island, Florida: $201,983
California has a longstanding housing shortage: Demand there far exceeds the annual rate of home construction in that state.
A mix of increased desire for homes in California and low interest rates early in the pandemic has driven up prices by 40% in the last four years, according to the most recent Federal Housing Finance Agency data available.
Some of the wealthiest people in the U.S. live in cities like San Jose, San Francisco and Anaheim. The exclusive enclave of Atherton has been the most expensive ZIP code in the country for years now, according to a RealtyHop study.
In contrast to California’s most expensive markets, the qualifying income needed to buy a typical home in the U.S. overall is $103,835. It’s even cheaper in the Midwest and the South, where the qualifying income is $74,967 and $95,511, respectively.
NAR’s calculated qualifying income in each metro market based on median sale prices, a 20% down payment and a 7.37% interest rate. The monthly principal and interest payment are limited to 25% of a household’s income.
Want to make extra money outside of your day job? Sign up for CNBC’s new online course How to Earn Passive Income Online to learn about common passive income streams, tips to get started and real-life success stories. Register today and save 50% with discount code EARLYBIRD.
Plus, sign up for CNBC Make It’s newsletter to get tips and tricks for success at work, with money and in life.
Read More:11 U.S. cities where you need to earn over $200,000 to buy a home
2024-04-09 17:00:04
