In Some California Cities You Need to Earn More Than $200,000 to Buy a Home

A new report from the National Association of Realtors says that to buy a home in some California cities, you’ll need to make more than $200,000 a year.

NAR’s quarterly report says that a family would have to make $482,835 to qualify for a median-priced single-family home in the San Jose area. This is the highest income needed in any of the 221 U.S. metro areas that were looked at.

The study looked at how much money someone with a 20% down payment and an interest rate of 7.12% would need to buy a home in each metro market. Each month’s principle and interest payment can’t be more than 25% of a family’s income.

It’s not a surprise that the towns that need the most money are the big ones on the coast, where homes tend to be more expensive. Because houses are both sought-after and hard to find in California, the state has some of the highest home prices in the U.S.

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To buy a median-priced home in these 11 metro areas, a family would need to make over $200,000 a year.

  • San Jose-Sunnyvale-Santa Clara, California: $482,835
  • Anaheim-Santa Ana-Irvine, California: $340,595
  • San Francisco-Oakland-Hayward, California: $339,290
  • Honolulu, Hawaii: $277,147
  • San Diego-Carlsbad, California: $255,381
  • Salinas, California: $246,716
  • Oxnard-Thousand Oaks-Ventura, California: $240,504
  • Los Angeles-Long Beach-Glendale, California: $234,266
  • San Luis Obispo-Paso Robles, California: $232,257
  • Boulder, Colorado: $223,879
  • Naples-Immokalee-Marco Island, Florida: $200,964

On the other hand, homes are much less expensive in Decatur, Illinois, which was ranked last out of 221 U.S. major areas in the study. People can buy a house in that city for as little as $33,459 a year.

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In the same way, homes in smaller towns in the rust belt and rural areas are much less expensive than homes in some California cities. To get a home in Charleston, West Virginia, Erie, Pennsylvania, or Youngstown, Ohio, your income must be less than $50,000 per year.

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