Cities With The Highest And Lowest Income Required For Mortgages Right Now

Written by B. Carlisle on September 5, 2021 updated October 22, 2024

It’s no secret that the housing market is crazy right now. Inventory is down, prices are up and income requirements from mortgage lenders are stricter than ever, especially in red hot real estate markets like San Francisco, Austin, Denver, and Boston.

If you’re in the market for a new home and need to finance it, there’s a good chance you’ll be looking at how much income is needed. The median household income required varies depending on what the market conditions are like where you want to buy. Cities with higher costs of living typically require more money to cover their mortgage payments than those with a lower cost of living, so examine your personal situation before making any decisions about purchasing property or getting a loan from the bank.

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That is why we compiled the list of cities with the highest and lowest income required for mortgages right now. The data compiled below comes from HSH.com’s quarterly report, which highlights the annual income required to qualify for a mortgage in the United States’ 50 largest metropolitan areas. It’s based on 2021 second-quarter sale price data for single-family homes, as compiled by the National Association of Realtors (NAR).

According to NAR, the national median sale price in Q2 2021 was $357,900 – roughly 22 percent higher than a year earlier, as the New York Times notes. That’s even higher than the average home price reported in June 2021, which was reported at a 13.5% increase.

If you are on a budget or want to live somewhere more affordable, this list should show you where to start looking.