What salary do you need to buy in the 15 largest cities?
According to Realtor Magazine, “Home values vary considerably across the country, and that means aspiring buyers will need more—or less—money depending on where they’re putting down roots. For example, the median home value in San Francisco is nearly $1.2 million, compared to $170,000 in Philadelphia.
Researchers with SmartAsset, a personal finance website, sought to find out how much consumers need in order to afford home payments in different areas of the country. They analyzed data for the 15 largest U.S. cities, factoring in five major metrics: median home value, property tax rate, down payment, homeowners insurance, and other monthly debt payments.”
Austin, Forth Worth, Dallas, San Antonio, and Houston are all on the the list of the top 15 largest cities in the United States. This makes it very interesting to compare the different Texas markets and see what your salary will get you. For example, in Austin, the median home value is $365,500 and in Houston the median home value is $179,100. With NO DEBT, your salary to afford a home in Austin, TX would need to be in $67,446. Houston is much more affordable. Here your salary can be $33,249 to purchase a home. Remember though, that number is with zero debt. See the chart for more scenarios since most of us have a car payment, credit card payment, or other debts.
In order of affordability, these are how the top Texas cities rank:
San Antonio (most affordable)
Austin (least affordable)
Based on the data from the chart, it is very interesting to see Austin rank as less affordable than Dallas. As a result of so many large tech companies and company headquarters making their home base in Austin vs cities like San Francisco or New York City, Austin has seen a significant rise in home values that most predict will only continue to grow. Check out a list of companies that currently are based out of Austin.