HowMuch, a website aimed to help people understand money, put together an infographic that illustrates out just how much your annual salary needs to be in every state if you’re interested in buying an “average” home in that state. The results might make you squirm.
Unsurprisingly, the east and west coasts are home to the most expensive, well, homes in the United States. In California, you need to make more than $120,000 a year in order to buy an “average” home. Meanwhile, over in Michigan the least expensive, you need to make $40,000. In Hawaii, which tops the list, you need to pull in $153,000 a year to buy a home — the average of which is more than $600,000.
HowMuch collected the data by scouring real-estate website Zillow. They then plugged those prices into a mortgage calculator, determined monthly mortgage payments, and, working on the assumption that buyers contribute a 10 percent down payment, constructed their map. They calculated the salaries by operating under the official recommendation of financial advisors that homebuyers should not purchase a home that costs more than 30 percent of their gross income.
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KristenMay 11, 2018
I live in a very high col area, and according to redfin 17 of the 25 hottest neighborhoods nationwide (none of which are in utah) are in my metro area. yes - it's insane - but the job market is what is driving up prices. people with marketable skills are being paid enough money to bid up a house $100K+ over list - and tear it down becasue they want the location - not the house. however- go to other parts of my state - and it is an entirely different story. both for housing - and jobs. Using data such as: by "state" is extremely misleading. property values, and jobs available, can vary widely from one population center within a state to another.
Pamela SmithMay 5, 2018
California was not ALWAYS unaffordable, but has become so driven by the market (the number of people who wish to live there vs. the availability of homes, among other factors). Utah is following in CA's footsteps. A large influx into Utah of Californians (who have more money to spend) has also caused this market anomoly. Rather than sulk about how you, perhaps, can not live well in a certain place, how about doing what wise people have always done -- research the market in other areas, research job availability in other areas, and then go for it. In the meantime, let's not forget the Heber C. Kimball prophesy in which he states that a spirit of speculation will come to exist in Utah and that Salt Lake City will become "one of the wicked cities of the world." Happening, folks.