Tag Archive for San Francisco

How Much You Need To Earn To Buy A Home

December 4, 2013 Housing Market Comments Off on How Much You Need To Earn To Buy A Home

A recent study of 25 major U.S. metropolitan areas found that the money someone needs to earn in order to buy a median-priced home in their market varies widely across the country. There is more than a $100,000 difference between the salary required to purchase an affordable home in the Cleveland area, for example, as compared to San Francisco. The data, from HSH Associates, looked at median home prices from the National Association of Realtors’ third-quarter data and the average interest rate for a 30-year fixed-rate mortgage to determine how much money someone would need to make in order to be able to afford the principal and interest payments on a home in their market. According to the results, a salary of less than $30,000 a year is enough to own a home in Cleveland, Cincinnati, St. Louis, Atlanta, Tampa, and Orlando. Cities such as Houston, Dallas, and Chicago all require less than $50,000 a year in salary to afford a home. The most expensive metro was San Francisco, where $125,000 is needed. San Diego, Los Angeles, New York, and Boston rounded out the top five most expensive areas. More here.

Buying A Home Still Cheaper Than Renting

September 29, 2013 Uncategorized Comments Off on Buying A Home Still Cheaper Than Renting

Despite recent increases in home prices and mortgage rates, buying a home is still cheaper than renting, according to Trulia’s Summer 2013 Rent Vs. Buy Report. The report, which compared the average cost of renting and owning a home in America’s 100 largest metropolitan areas between June 1 and August 31, found homeownership is now 35 percent cheaper than renting. That’s down from last year when buying a home was 45 percent cheaper. Jed Kolko, Trulia’s chief economist, said, though rising mortgage rates and home prices have made buying less affordable than last year, they’re both still below historical norms. According to Kolko, mortgage rates would have to reach into double-digits before renting became cheaper than buying. The report found that homeownership was more affordable than renting in all of the largest 100 cities surveyed. San Jose, San Francisco, Honolulu, Orange County, and New York were the metros where the associated costs between renting and buying were closest. More here.