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Financial website How Much recently analyzed National Association of Realtors and mortgage-information site HSH.com's data to find how much it costs to buy the "average-sized home" in 50 major U.S. cities.
Currently, the median U.S. household annual earnings is $61,372, a two percent increase from two years ago and a record high, yet in the most expensive cities studied like San Jose, Calif., households need to earn nearly 4.5 times that amount. The report says, "Our map reveals three tiers in annual income workers need to earn to afford a median home. First, the West Coast stands out as by far the most expensive market in the country," while the second tier is made up of expensive East Coast markets like Boston, Washington, D.C., and New York, CNBC reports.
Researchers found the median price of homes in the 50 most populated metro areas across the country and "calculated monthly principal, interest, property tax and insurance payments buyers have to pay for a 30-year fixed rate mortgage," says How Much. They then calculated what salary would be needed to afford each home, assuming a 20 percent down payment and that the total housing payment would not make up more than 28 percent of gross income.
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