How much income do you need to buy a home in Philadelphia?
How much money do you need to make to afford a home in Philadelphia?
Although prices vary greatly in each neighborhood, you would need an after-tax income of at least $36,836 per year to afford a home in the city, according to HSH.com.
The online mortgage and consumer loan information website figured out how much residents need to make to purchase median-priced homes in 25 of the country’s largest metropolitan areas.
Philly, ranked at number 13 in terms of affordability, has a median home price of $214,300 with a monthly mortgage payment of $859.52.
“After three consecutive quarters of increases, home prices finally fell off in the final quarter of 2013,” writes Tim Manni of HSH.com “Likewise, the YOY gain in the City of Brotherly Love isn’t nearly as impressive as others, helping the salary requirement drop by more than $3,600.”
Not surprisingly, the real estate markets in New York City (No. 22) and Washington, D.C. (No. 20) were proven less affordable. In NYC, you would need to earn $66,167 after taxes to afford a home worth $386,300.
HSH.com’s most affordable city is Cleveland, where you would need a base income of just $19,435. The priciest city is San Francisco, where you would have to make at least $115,510 to afford a home worth $682,410.
To get the results, HSH.com compared the National Association of Realtors’ fourth-quarter data for median home prices and HSH.com’s fourth-quarter average interest rate for 30-year, fixed-rate mortgages. They determined the income home buyers would need to earn in order to afford only the principal and interest payment on an median-priced home.