In many major cities across the U.S., homes have become unaffordable to all but their wealthiest residents. According to CNBC, a recent analysis of the 50 largest cities in the U.S. by mortgage analytics firm HSH indicates an average income of $104,339 is needed to afford a home in these cities. Comparatively, the national median household income is $74,580. Of all the cities analyzed, San Jose, Calif., is the most expensive location to purchase a home, followed by other major California cities, such as San Francisco, San Diego, and then Los Angeles.
Unsurprisingly, incomes needed to buy a home are highest in the largest American cities, where demand for homes is strong due to job opportunities, especially in the well-paid fields of tech, finance and health care. A longstanding shortage of homes is another factor that’s particularly acute in California, which helps explain why median home prices in some of the state’s cities, such as San Jose, are twice the national median of $412,300, per U.S. Census data.
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