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

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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.

Realted: 4 Best Cities To Invest In Commercial Real Estate Through Crowdfunding

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.

Related: The Hottest Real Estate Markets In The U.S. If You’re Looking To Buy Or Sell

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

Cities with the highest required income: 

 

San Jose, Calif.
Required income: $286,703
Monthly payment: $6,690

San Francisco, California via Unsplashed

 

San Francisco
Required income: $237,665
Monthly payment: $5,546

San Diego
Required income: $147,434
Monthly payment: $3,440

Los Angeles
Required income: $130,921
Monthly payment: $3,055

Los Angeles, California via Unsplashed

Seattle
Required income: $124,226
Monthly payment: $2,899

Boston
Required income: $123,534
Monthly payment: $2,882

New York
Required income: $118,042
Monthly payment: $2,754

Denver
Required income: $104,739
Monthly payment: $2,444

Washington
Required income: $104,118
Monthly payment: $2,429

Austin, Texas
Required income: $102,155
Monthly payment: $2,384

Austin, Texas via Unsplashed

Cities with the lowest required income:

CincinnatiRequired income:

$49,367
Monthly payment: $1,152

Birmingham, Ala.
Required income: $49,164
Monthly payment: $1,147

Buffalo
Required income: $48,815
Monthly payment: $1,139

St. Louis
Required income: $47,981
Monthly payment: $1,120

St. Louis, Missouri via Unsplashed

Indianapolis
Required income: $47,731
Monthly payment: $1,114

Memphis
Required income: $47,272
Monthly payment: $1,103

Louisville, Ky.
Required income: $44,314
Monthly payment: $1,034

Louisville, Kentucky via Unsplashed

Cleveland
Required income: $44,090
Monthly payment: $1,029

Oklahoma City
Required income: $41,740
Monthly payment: $974

Pittsburgh
Required income: $38,275
Monthly payment: $893

Pittsburgh via Unsplashed

Author
B. Carlisle

Contributing editor at Wealth Gang. An entrepreneur at heart, he's passionate about meaningful ways to leverage technology and social media for business opportunities and side hustles.

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