RIVERDALE, N.J.–A new study shows where Americans may need to move if they ever plan to move-in.
The study from HSH.com examines how much money a person would need to earn in order to afford the interest, taxes, and insurance on a median-priced home. The analysis examined the country’s 27 largest metro areas.
The most affordable markets are in the American Midwest, with Pittsburgh leading the way. In the Steel City a salary of just $32,390.09 was found to be needed afford a median-priced home of $140,500. Pittsburgh was followed by Cleveland ($34,433.95) and Cincinnati ($37,179.18).
HSH noted these cities remained the most affordable despite substantial home price increases over the previous quarter. Cleveland's home prices went up 24%, while Pittsburgh and Cincinnati's home prices went up 17%.
To no one’s surprise, the cities that require the highest salaries in which to move into a home are all on the West Coast. San Francisco and San Diego, required salaries of $161,947.60 and $109,440.97, respectively, to maintain a median-priced home.
Only three cities in the report became more affordable since the previous study, and all are in Florida: Tampa, Orlando, and Miami.
"Steadily improving local job markets and mortgage rates teetering close to all-time lows brought buyers out in force in many large and middle-tier cities," said Lawrence Yun, NAR chief economist, in a statement. "However, with homebuilding activity still failing to keep up with demand and not enough current homeowners putting their home up for sale, prices continued their strong ascent – and in many markets at a rate well above income growth."