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California Household Buying Income Requirements Soar
Four California markets are among those requiring the highest salaries to buy a house in the U.S., reports mortgage information website HSH.com. In fact, two Bay Area markets qualify as the runaway leaders across the nation’s 50 most populous metro areas in the third quarter.
It requires $216,181 in household income to purchase a home in the San Jose metro area, and $171,330 is needed in the San Francisco metro. San Diego buyers need $116,120, and Los Angeles households need $115,068 in income.
In New York City $99,151 is required, while $97,465 is needed in Boston, $93,418 in Seattle and $84,503 in Washington, DC. The study assumed a 20% down payment on a 30-year fixed rate loan.
Among the markets with lower household income requirements are Las Vegas ($50,728), Atlanta ($55,390), Austin ($67,440), and Sacramento ($71,344).
The affordability crisis is primarily blamed on the U.S.’s constricted home supply, a situation the report notes is not expected to improve soon.
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