Here's how much you need to earn to buy a home in the US: The report


Housing market it continues to be gloomyaccording to a new report from the forecasting and quantitative analysis firm Oxford Economics.

Home prices have risen in every major US metro area over the past five years, and mortgage rates have nearly doubled. That has caused housing affordability to drop “significantly” with only a third of US households earning enough to buy a home last quarter, according to the report.

Meanwhile, in June, housing prices were 47% higher than those listed at the beginning of 2020. for CNBC.

Related: You have one month left to buy a home, according to Barbara Corcoran. Here's why.

To afford a new home, for a family in the US (including paying property taxes and home insurance) in the third quarter of 2024, a family would need to earn an annual income of $107,700 – nearly double the income of family that are needed in Q3 2019.

What are the most affordable metro areas in the US?

Many of the most affordable areas to live in the US are in the Midwest, according to the report, where nearly two-thirds of households could afford median-priced homes with wages between $64,600 and $75,300.

The top of the list includes Decatur, IL; Cumberland, MD; Youngstown, OH; Charleston, WV; and Elmira, NY. When it comes to major metro areas, Oklahoma City, Memphis, Cleveland, Louisville, Detroit and St. Louis. Louis, were considered more affordable.

Related: Home prices are falling fastest in these 10 US cities

What are the least affordable metro areas in the US?

The report found that most of the least affordable metro areas to live in the US are in California (San Jose, San Francisco, Los Angeles and San Diego all made the list) and Honolulu, Hawaii, where, the report notes, “the most less than 15% of households earned enough income to meet their respective housing costs in Q3 2024.”

San Jose was found to be No. 1 least affordable, with median home prices reaching $1.89 million in Q3 2024. for CNN. Residents there need an annual income of $461,000 to afford a home.



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