Salary needed to buy a home in most expensive metros drops slightly

The gap between the salary required in buying a home in the most affordable and most expensive US cities has narrowed slightly, according to a study by HSH.com.

The study revealed that the income of potential homebuyers needed to buy a median-priced home dropped in all 50 states as mortgage rates declined and smaller price increases.

Years of outsized price gains, as well as changes in declining mortgage rates and rising incomes, have pushed down the salaries required to afford a median-priced home in most metros in the first quarter of 2019.

With a 20% down payment, these are the cities that need potential buyers to make the most money to afford median-priced home:

1. San Jose – $237,978.37 annual salary needed
2. San Francisco – $186,250.55 annual salary needed
3. San Diego – $124,771.80 annual salary needed
4. Los Angeles – $112,555.74 annual salary needed
5. Boston – $103,058.20 annual salary needed

These affordable metros require the lowest salaries to afford a median-priced home with a 20% down:

1. Pittsburgh – $35,799.94 annual salary required
2. Oklahoma City – $37,928.03 annual salary required
3. Cleveland – $39,083.15annual salary required
4. Memphis – $39,323.94 annual salary required
5. Louisville – $40,125.23 annual salary required

However, if a homebuyer wants to purchase a national median-priced home with 10% down instead of 20%, the required salary climbs to $67,430.58.