How much you must earn to buy a home in 78 US cities

The stress of purchasing a new home coupled with the uncertainty of living expenses can make looking for housing an exhausting task. To avoid home-buying fatigue, buyers should check how far their salary can stretch before seriously considering signing on a home.

To assist prospective home buyers, finder.com calculated the salaries necessary to buy a home and live comfortably in 78 key cities across the US for 2020. For us, living soundly means more than just initially affording your dream home. We considered median state expenditures as well as changing rates on a 30-year mortgage.

Map of 78 US cities and required salaries

Key findings

While home values have increased over the past 12 months across the 78 cities we surveyed, average home loan interest rates have fallen in 2020. Overall, the salary required to own a home and afford living expenses decreased in most cities since 2018.

Four of the top five most expensive cities to be a homeowner were in California: San Francisco, San Jose, Los Angeles and San Diego. And five of the top 10 cities required you to earn more than six figures just to buy a home. Aside from covering your living expenses, you need to earn above a certain threshold to even qualify for a mortgage.
13 cities on our list became more expensive to buy a home in since 2018, including Philadelphia, Cincinnati and Las Vegas. 60 cities on our list became cheaper to buy a home, mostly driven by lower interest rates.
The cheapest city analyzed was still Jackson, Mississippi, where citizens can afford to buy a home on $44,129. According to the US Census Bureau, the median wage in the US in 2019 was $63,179. Based on finder.com research, the US median wage will only allow those earning a comparable wage to afford a home in 43 out of 78 of the cities we analyzed.

What does it mean to live comfortably?

Our finder.com analysis was based on:

Here’s the complete list of cities included in the study. Use the search below to find your city.

2020 rankings

Methodology

Median house prices data was sourced from Zillow Home Value Index (ZHVI) by Zillow where Geography = City, accessed on Sept 10, 2020. Average 30-year interest rates in each state was sourced from bankrate on September 9, 2020. Mortgage repayments were calculated based on a 20% deposit on the median house prices in each city and the average 30-year interest rate in each state.

The average non-mortgage debt in the state was sourced from Debt in America by the Urban Institute, with prices in August 2020 dollars based on the Consumer Price Index (CPI).The average non-housing expenditures in the state was based on the per capita Personal Consumption Expenditures by State by the Bureau of Economic Analysis (BEA). We calculated personal consumption expenditures outside of housing by subtracting the per capita amount spent on housing and utilities, and adjusted to 2020 prices based on the CPI.

To calculate the required salary to buy a home, we calculated the income needed based on the ideal mortgage debt-to-income ratio of 28% and the monthly mortgage payments required in each city, making sure that the income needed for the ideal mortgage ratio was at least the sum of non-mortgage debt, yearly mortgage and non-housing expenditure in each city.

We looked at five new cities this year: San Antonio, Texas; Austin, Texas; Fort Worth, Texas; Louisville, Kentucky and Albuquerque, New Mexico. We did not include five cities that we looked at in previous years: Rochester, New York; Harrisburg, Pennsylvania; Scranton, Pennsylvania; Ogden, Utah and Youngstown, Ohio.

Data from previous years

• 2018

  The stress of purchasing a new home coupled with the uncertainty of living expenses can make looking for housing an exhausting task. To avoid home-buying fatigue, buyers should check how far their salary can stretch before seriously considering signing on a home.

  To assist prospective home buyers, finder.com calculated the salaries necessary to buy a home and live comfortably in 78 key cities across the US for 2018. For us, living soundly means more than just initially affording your dream home. We considered median state expenditures as well as changing rates on a 30-year mortgage.

  Map of 78 US cities and required salaries

  Key findings

  While home values have increased over the past 12 months across the 78 cities we surveyed, average home loan interest rates have also slightly risen. Overall, the salary required to own a home and afford living expenses continues to increase in many cities.

  • San Francisco claimed the number one spot for highest required salary, with a prospective homeowner needing to make $221,931 a year to buy an average home costing $1,334,800. The required salary in San Francisco has actually increased 36% since September 2017, mostly due to an increase in the average mortgage interest rate from 2.95% in September to 4.13% in June.
  • San Jose remained in second place, with a salary of $179,616 required to purchase a home, increasing 50% since September.

  • Washington, DC moved down a rank to seventh place, with a salary of $102,974 required to purchase a home.
  • Seattle moved up to fourth place, with a prospective homeowner needing to make $127,678 a year.
  • San Diego jumps up a place to become the sixth most expensive city to live in and buy a home, with a required salary of $103,998.

  Six of the top 10 cities — San Francisco, San Jose, Los Angeles, New York City, Seattle and San Diego — require you to earn significant figures because of high home values. Aside from covering your living expenses, you need to earn above a certain threshold to even qualify for a mortgage.

  Thirty-five cities became more expensive to live in since September, including New York City, Boston, Colorado Springs and Washington, DC, where the cost of living increased an average of 19%. Non-housing expenditures increased by more than $10,000 since September in these four cities.

  The average interest rate for a 30-year mortgage in Washington, DC also rose from 2.46% to 4.46%.

  The cheapest city analyzed was Birmingham, Alabama, where citizens can afford to buy a home and live on $50,371 a year. According to the US Census Bureau, the median wage in the US in 2016 was $57,230. Based on our research, this median wage would only allow you to live in 17 of the 78 cities we surveyed.

  What does it mean to live comfortably?

  Our finder.com analysis was based on:

  • Median house prices
  • Average 30-year interest rate based on a 20% deposit
  • Mortgage repayments including mortgage interest

  • Average non-mortgage debt in the city
  • Average non-housing expenditures in the state

  Here’s the complete list of cities included in the study. Use the search below to find your city.

  2018 rankings

  Search

  Rank	City, state	Home value	Non-housing expenditures	Non-mortgage debt	Average interest rate	Monthly mortgage repayments	Required salary	% change for required salary	2017 salary	Previous rank
  1	San Francisco, CA	$1,334,800.00	$41,827.00	$16,230.00	4.13%	$5,178.39	$221,930.84	36.25%	$162,887	1
  2	San Jose, CA	$1,080,300.00	$41,827.00	$15,220.00	4.13%	$4,191.05	$179,616.33	50.36%	$119,455	2
  3	Seattle, WA	$767,000.00	$42,922.00	$17,939.00	4.14%	$2,979.16	$127,678.31	63.36%	$78,160	7
  4	Los Angeles, CA	$674,600.00	$41,827.00	$14,407.00	4.13%	$2,617.13	$112,162.53	34.64%	$83,304	4
  5	San Diego, CA	$625,500.00	$41,827.00	$16,284.00	4.13%	$2,426.64	$103,998.91	34.32%	$77,429	8
  6	Washington, DC	$566,600.00	$56,843.00	$18,700.00	4.46%	$2,285.94	$102,974.31	23.51%	$83,374	3
  7	New York, NY	$660,000.00	$46,906.00	$16,255.00	3.41%	$2,344.51	$100,478.98	25.12%	$80,307	5
  8	Boston, MA	$585,100.00	$51,981.00	$18,491.00	4.05%	$2,248.20	$97,450.39	23.11%	$79,155	6
  9	Worcester, MA	$229,500.00	$51,981.00	$17,714.00	4.05%	$881.84	$80,277.02	22.12%	$65,735	9
  10	Denver, CO	$418,300.00	$42,648.00	$18,045.00	4.10%	$1,616.98	$80,096.70	22.67%	$65,297	10
  11	Portland, OR	$429,400.00	$39,742.00	$16,069.00	4.13%	$1,665.87	$75,801.40	26.75%	$59,802	13
  12	Riverside, CA	$393,300.00	$41,827.00	$14,849.00	4.13%	$1,525.82	$74,985.79	29.40%	$57,950	16
  13	Colorado Springs, CO	$274,000.00	$42,648.00	$18,584.00	4.10%	$1,059.17	$73,942.05	21.95%	$60,634	11
  14	Albany, NY	$181,300.00	$46,906.00	$18,676.00	3.41%	$644.03	$73,310.36	20.95%	$60,612	12
  15	New Haven, CT	$162,300.00	$48,497.00	$17,011.00	4.05%	$623.62	$72,991.49	22.42%	$59,623	15
  16	Springfield, MA	$128,000.00	$51,981.00	$14,596.00	4.05%	$491.83	$72,478.96	21.36%	$59,720	14
  17	Sacramento, CA	$313,700.00	$41,827.00	$15,880.00	4.13%	$1,217.01	$72,311.07	27.60%	$56,669	20
  18	Hartford, CT	$126,300.00	$48,497.00	$17,314.00	4.05%	$485.30	$71,634.57	23.62%	$57,949	17
  19	Virginia Beach, VA	$258,100.00	$41,632.00	$17,331.00	4.02%	$988.15	$70,820.79	23.14%	$57,511	18
  20	Madison, WI	$247,500.00	$42,922.00	$15,348.00	4.14%	$961.33	$69,805.99	30.05%	$53,675	32
  21	Chicago, IL	$225,900.00	$41,772.00	$16,483.00	4.02%	$864.87	$68,633.44	21.20%	$56,630	22
  22	Stockton, CA	$284,400.00	$41,827.00	$13,508.00	4.13%	$1,103.34	$68,575.03	30.26%	$52,644	36
  23	Syracuse, NY	$82,200.00	$46,906.00	$17,865.00	3.41%	$292.00	$68,274.98	20.28%	$56,763	19
  24	Richmond, VA	$207,400.00	$41,632.00	$17,088.00	4.02%	$794.04	$68,248.50	27.22%	$53,646	33
  25	Providence, RI	$198,400.00	$42,454.00	$16,425.00	4.08%	$765.09	$68,060.11	23.37%	$55,167	27
  26	Spokane, WA	$191,300.00	$42,922.00	$16,045.00	4.14%	$743.04	$67,883.51	24.79%	$54,398	29
  27	Rochester, NY	$75,100.00	$46,906.00	$17,611.00	3.41%	$266.78	$67,718.32	20.76%	$56,076	24
  28	Baltimore, MD	$113,900.00	$44,748.00	$17,663.00	4.04%	$437.12	$67,656.50	24.42%	$54,376	30
  29	Pittsburgh, PA	$139,400.00	$40,886.00	$19,822.00	4.02%	$533.70	$67,112.40	18.50%	$56,634	21
  30	Bakersfield, CA	$232,400.00	$41,827.00	$13,680.00	4.13%	$901.60	$66,326.21	27.37%	$52,072	40
  31	Philadelphia, PA	$146,700.00	$40,886.00	$18,688.00	4.02%	$561.65	$66,313.78	18.22%	$56,095	23
  32	Charleston, SC	$306,200.00	$33,266.00	$18,434.00	4.05%	$1,176.55	$65,818.58	18.51%	$55,537	25
  33	Orlando, FL	$228,000.00	$38,644.00	$16,464.00	4.18%	$889.84	$65,786.07	25.35%	$52,483	38
  34	Fresno, CA	$229,700.00	$41,827.00	$12,899.00	4.13%	$891.13	$65,419.51	29.55%	$50,499	48
  35	Tampa, FL	$209,200.00	$38,644.00	$16,596.00	4.18%	$816.47	$65,037.60	22.95%	$52,896	35
  36	Allentown, PA	$123,500.00	$40,886.00	$18,341.00	4.02%	$472.83	$64,900.91	17.97%	$55,014	28
  37	Jacksonville, FL	$163,100.00	$38,644.00	$17,919.00	4.18%	$636.55	$64,201.57	20.50%	$53,278	34
  38	Omaha, NE	$164,000.00	$38,970.00	$17,138.00	3.94%	$621.84	$63,570.07	17.69%	$54,016	31
  39	Harrisburg, PA	$54,100.00	$40,886.00	$19,874.00	4.02%	$207.12	$63,245.50	13.89%	$55,534	26
  40	Raleigh, NC	$261,800.00	$33,779.00	$17,144.00	4.01%	$1,001.11	$62,936.28	22.14%	$51,529	42
  41	Las Vegas, NV	$255,600.00	$36,177.00	$14,692.00	4.18%	$997.56	$62,839.68	25.48%	$50,078	53
  42	Phoenix, AZ	$229,000.00	$34,580.00	$17,126.00	4.15%	$890.54	$62,392.50	19.97%	$52,008	41
  43	Atlanta, GA	$235,200.00	$34,657.00	$16,480.00	4.02%	$900.48	$61,942.71	21.04%	$51,174	45
  44	Columbus, OH	$144,000.00	$37,449.00	$17,768.00	4.02%	$551.31	$61,832.74	17.91%	$52,442	39
  45	Nashville, TN	$252,800.00	$34,219.00	$15,882.00	4.06%	$972.53	$61,771.40	21.05%	$51,029	46
  46	Grand Rapids, MI	$145,600.00	$39,332.00	$15,109.00	4.13%	$564.86	$61,219.30	22.07%	22.07%	52
  47	Lakeland, FL	$152,700.00	$38,644.00	$15,397.00	4.18%	$595.96	$61,192.50	21.36%	$50,421	49
  48	Scranton, PA	$66,400.00	$40,886.00	$16,942.00	4.02%	$254.22	$60,878.59	15.94%	$52,507	37
  49	Charlotte, NC	$211,700.00	$33,779.00	$17,163.00	4.01%	$809.53	$60,656.33	20.87%	$50,182	51
  50	Dallas, TX	$186,600.00	$36,537.00	$15,495.00	4.01%	$713.55	$60,594.56	21.21%	$49,991	55
  51	Cincinnati, OH	$131,500.00	$37,449.00	$16,902.00	4.02%	$503.45	$60,392.46	17.68%	$51,321	43
  52	Kansas City, MO	$136,200.00	$37,526.00	$16,211.00	4.00%	$520.19	$59,979.30	19.91%	$50,021	54
  53	Houston, TX	$176,100.00	$36,537.00	$15,332.00	4.01%	$673.40	$59,949.74	20.88%	$49,593	56
  54	Des Moines, IA	$132,200.00	$37,005.00	$16,906.00	3.85%	$495.81	$59,860.74	16.89%	$51,210	44
  55	Jackson, MS	$139,900.00	$37,526.00	$15,759.00	4.00%	$534.32	$59,696.88	39.10%	$42,916	78
  56	Ogden, UT	$188,500.00	$35,114.00	$15,351.00	4.09%	$727.79	$59,198.46	27.11%	$46,573	70
  57	Milwaukee, WI	$112,000.00	$38,788.00	$14,688.00	3.89%	$422.10	$58,541.22	20.67%	$48,513	61
  58	Akron, OH	$62,900.00	$37,449.00	$18,018.00	4.02%	$240.82	$58,356.79	15.81%	$50,388	50
  59	Toledo, OH	$67,000.00	$37,449.00	$17,330.00	4.02%	$256.51	$57,857.16	16.91%	$49,490	57
  60	Columbia, SC	$127,900.00	$33,266.00	$18,661.00	4.05%	$491.45	$57,824.34	14.36%	$50,564	47
  61	Tucson, AZ	$180,200.00	$34,580.00	$14,547.00	4.15%	$700.77	$57,536.20	20.23%	$47,856	62
  62	Cleveland, OH	$50,400.00	$37,449.00	$17,246.00	4.02%	$192.96	$57,010.51	15.92%	15.92%	58
  63	El Paso, TX	$122,600.00	$36,537.00	$14,631.00	4.01%	$468.81	$56,793.77	18.69%	$47,852	63
  64	Wichita, KS	$120,400.00	$35,984.00	$15,121.00	3.93%	$455.97	$56,576.61	16.01%	$48,767	60
  65	Detroit, MI	$34,500.00	$39,332.00	$14,860.00	4.13%	$133.84	$55,798.12	19.74%	$46,599	69
  66	Greenville, SC	$176,800.00	$33,266.00	$14,321.00	4.05%	$679.34	$55,739.08	18.54%	$47,020	68
  67	Youngstown, OH	$39,900.00	$37,449.00	$16,246.00	4.02%	$152.76	$55,528.11	17.13%	$47,406	65
  68	Knoxville, TN	$158,000.00	$34,219.00	$13,978.00	4.06%	$607.83	$55,491.00	21.51%	$45,667	74
  69	Augusta, GA	$130,600.00	$34,657.00	$14,718.00	4.02%	$500.01	$55,375.11	23.06%	$44,999	76
  70	Dayton, OH	$45,600.00	$37,449.00	$15,667.00	4.02%	$174.58	$55,210.98	16.07%	$47,568	64
  71	Chattanooga, TN	$140,900.00	$34,219.00	$14,475.00	4.06%	$542.05	$55,198.59	18.69%	$46,507	71
  72	McAllen, TX	$128,600.00	$36,537.00	$12,455.00	4.01%	$491.76	$54,893.10	19.77%	$45,833	72
  73	Oklahoma City, OK	$125,700.00	$32,978.00	$16,124.00	4.02%	$481.25	$54,876.99	12.34%	$48,847	59
  74	Little Rock, AR	$138,900.00	$31,117.00	$17,333.00	3.95%	$527.31	$54,777.67	16.32%	$47,091	67
  75	Greensboro, NC	$133,400.00	$33,779.00	$14,570.00	4.01%	$510.11	$54,470.36	18.86%	$45,827	73
  76	Tulsa, OK	$118,700.00	$32,978.00	$15,468.00	4.02%	$454.45	$53,899.39	13.99%	$47,284	66
  77	Memphis, TN	$82,300.00	$34,219.00	$15,189.00	4.06%	$316.61	$53,207.34	17.96%	$45,106	75
  78	Birmingham, AL	$69,900.00	$31,336.00	$15,835.00	3.99%	$266.65	$50,370.78	13.91%	$44,220	77

• 2017

  2017 data

  When you’re ready to buy a house in a new city, lots of things impact your decision, including whether it’s a safe community, if it has public transportation, its proximity to shops and restaurants and what its school system is like. Many big cities offer the allure but can be financially way out of reach. The good news: Falling interest rates mean housing is becoming more affordable. What’s the figure in your hometown?

  Jump straight to the table

  Key findings

  We conducted similar research six months ago, but there have been some major changes in the market. While home values have increased in general across the cities, average home loan interest rates have fallen. That means the salary required to own a home and afford living expenses has dropped in many cities.

  • San Francisco topped the list once again, with a salary of $162,887 required simply to buy an average home costing $1,134,000. The required salary in San Francisco has actually dropped almost 10% since January, mostly due to a drop in the average mortgage interest rate from 3.88% in January to 2.95% in July.
  • San Jose remained in second place, with $119,455 required to purchase a home, falling 8% since January.
  • Washington, DC moved up a rank to $83,374.
  • Los Angeles moved down to $83,304
  • New York City jumps up a place to become the fifth most expensive city to live in and buy a home, with a required salary of $80,307.

  Six of the top 10 cities — San Francisco, San Jose, Los Angeles, San Diego, New York City and Seattle — require you to have a high salary because of high home values. This means that in oder to qualify for a mortgage, you’re required to have a high salary to cover living expenses on top of your mortgage. No other cities in this list had that problem.

  Only six cities became more expensive to live in since January, with the required wage increasing in Denver, Colorado Springs, Harrisburg, Columbus, Grand Rapids and Birmingham by an average of 0.64%. Home loan interest rate increases drove this change in Denver and Colorado Springs, where the average rate rose from 3.96% to 4.00%. The average interest rate in Birmingham, Alabama, also rose from 3.71% to 4.00%. The cheapest city analyzed was Jackson, Mississippi, where citizens can afford to live on $42,916. According to the US Census Bureau, the average wage in the US in 2014 was $53,657. Based on finder.com research, this is a sufficient income to live in 46 out of 78 of the cities we analyzed.
  Compare home loan options

  What does it mean to live comfortably?

  The analysis was based on:

  • Median house prices
  • Average 30-year interest rate based on a 20% deposit
  • Mortgage repayments including mortgage interest
  • Average non-mortgage debt in the city
  • Average non-housing expenditures in the state

  Here’s the complete list of cities included in the study. Click on any column heading to sort using that column.

  Search

  Rank	City, state	Home value	Non-housing expenditure	Non-mortgage debt	Average interest rate	Monthly mortgage repayments	Required salary	% change for required salary	Previous rank
  1	San Francisco, CA	$1,134,100	$29,842	$16,230	2.95%	$3,801	$162,887	-9.81%	1
  2	San Jose, CA	$831,700	$29,842	$15,220	2.95%	$2,787	$119,455	-8.02%	2
  3	Washington, DC	$511,700	$45,366	$18,700	2.46%	$1,609	$83,374	-2.51%	4
  4	Los Angeles, CA	$580,000	$29,842	$14,407	2.95%	$1,944	$83,304	-7.69%	3
  5	New York, NY	$592,800	$35,943	$16,255	2.50%	$1,874	$80,307	-5.29%	6
  6	Boston, MA	$491,400	$39,481	$18,491	3.50%	$1,765	$79,155	-0.27%	8
  7	Seattle, WA	$580,000	$32,429	$17,939	2.46%	$1,824	$78,160	-6.74%	7
  8	San Diego, CA	$539,100	$29,842	$16,284	2.95%	$1,807	$77,429	-8.72%	5
  9	Worcester, MA	$198,100	$39,481	$17,714	3.50%	$712	$65,735	-0.04%	9
  10	Denver, CO	$342,300	$31,564	$18,045	4.00%	$1,307	$65,297	1.45%	10
  11	Colorado Springs, CO	$228,800	$31,564	$18,584	4.00%	$874	$60,634	1.11%	14
  12	Albany, NY	$158,000	$35,943	$18,676	2.50%	$499	$60,612	-0.30%	12
  13	Portland, OR	$371,800	$29,704	$16,069	2.46%	$1,169	$59,802	-2.05%	11
  14	Springfield, MA	$130,900	$39,481	$14,596	3.50%	$470	$59,720	-0.15%	15
  15	New Haven, CT	$151,500	$36,896	$17,011	2.46%	$476	$59,623	-1.50%	13
  16	Riverside, CA	$329,700	$29,842	$14,849	2.95%	$1,105	$57,950	-1.27%	17
  17	Hartford, CT	$99,100	$36,896	$17,314	2.46%	$312	$57,949	-0.32%	18
  18	Virginia Beach, VA	$250,100	$30,743	$17,331	2.46%	$786	$57,511	-2.60%	16
  19	Syracuse, NY	$77,900	$35,943	$17,865	2.50%	$246	$56,763	-0.26%	23
  20	Sacramento, CA	$272,200	$29,842	$15,880	2.95%	$912	$56,669	-0.85%	19
  21	Pittsburgh, PA	$111,100	$32,401	$19,822	2.85%	$368	$56,634	-0.49%	22
  22	Chicago, IL	$208,600	$31,693	$16,483	3.01%	$704	$56,630	-0.72%	20
  23	Philadelphia, PA	$126,100	$32,401	$18,688	2.85%	$417	$56,095	-0.65%	24
  24	Rochester, NY	$66,500	$35,943	$17,611	2.50%	$210	$56,076	0.01%	25
  25	Charleston, SC	$263,000	$27,179	$18,434	2.46%	$827	$55,537	-2.45%	21
  26	Harrisburg, PA	$82,100	$32,401	$19,874	2.85%	$272	$55,534	0.57%	28
  27	Providence, RI	$159,200	$32,299	$16,425	3.00%	$537	$55,167	-0.89%	26
  28	Allentown, PA	$107,600	$32,401	$18,341	2.85%	$356	$55,014	-0.54%	27
  29	Spokane, WA	$157,000	$32,429	$16,045	2.46%	$494	$54,398	-1.34%	29
  30	Baltimore, MD	$114,900	$32,314	$17,663	2.57%	$367	$54,376	-0.98%	30
  31	Omaha, NE	$141,600	$31,234	$17,138	2.88%	$470	$54,016	-1.10%	32
  32	Madison, WI	$214,900	$30,218	$15,348	2.46%	$676	$53,675	-1.73%	31
  33	Richmond, VA	$154,100	$30,743	$17,088	2.46%	$485	$53,646	-1.76%	33
  34	Jacksonville, FL	$137,800	$29,594	$17,919	3.26%	$480	$53,278	-0.34%	34
  35	Tampa, FL	$160,300	$29,594	$16,596	3.26%	$559	$52,896	-0.31%	36
  36	Stockton, CA	$231,100	$29,842	$13,508	2.95%	$774	$52,644	-1.06%	35
  37	Scranton, PA	$79,700	$32,401	$16,942	2.85%	$264	$52,507	-0.79%	38
  38	Orlando, FL	$153,600	$29,594	$16,464	3.26%	$535	$52,483	-0.30%	40
  39	Columbus, OH	$117,800	$29,827	$17,768	3.13%	$404	$52,442	0.13%	42
  40	Bakersfield, CA	$212,600	$29,842	$13,680	2.95%	$712	$52,072	-1.63%	37
  41	Phoenix, AZ	$192,000	$27,464	$17,126	2.64%	$618	$52,008	-1.73%	39
  42	Raleigh, NC	$205,600	$26,627	$17,144	2.46%	$646	$51,529	-2.00%	41
  43	Cincinnati, OH	$111,600	$29,827	$16,902	3.13%	$383	$51,321	-0.57%	44
  44	Des Moines, IA	$117,000	$29,813	$16,906	2.59%	$374	$51,210	-0.86%	43
  45	Atlanta, GA	$190,600	$27,088	$16,480	2.89%	$634	$51,174	-0.73%	45
  46	Nashville, TN	$200,300	$26,873	$15,882	3.16%	$689	$51,029	-0.22%	48
  47	Columbia, SC	$125,200	$27,179	$18,661	2.46%	$394	$50,564	-1.65%	46
  48	Fresno, CA	$192,900	$29,842	$12,899	2.95%	$646	$50,499	-1.31%	47
  49	Lakeland, FL	$129,800	$29,594	$15,397	3.26%	$452	$50,421	-0.11%	53
  50	Akron, OH	$61,800	$29,827	$18,018	3.13%	$212	$50,388	-0.29%	52
  51	Charlotte, NC	$169,400	$26,627	$17,163	2.46%	$533	$50,182	-1.67%	49
  52	Grand Rapids, MI	$116,200	$30,183	$15,109	3.26%	$405	$50,153	0.18%	56
  53	Las Vegas, NV	$197,200	$27,557	$14,692	2.85%	$652	$50,078	-1.84%	50
  54	Kansas City, MO	$109,900	$29,362	$16,211	3.00%	$371	$50,021	-0.57%	55
  55	Dallas, TX	$143,800	$28,853	$15,495	2.76%	$470	$49,991	-0.67%	54
  56	Houston, TX	$137,800	$28,853	$15,332	2.76%	$451	$49,593	-1.93%	51
  57	Toledo, OH	$56,700	$29,827	$17,330	3.13%	$194	$49,490	-0.33%	57
  58	Cleveland, OH	$51,200	$29,827	$17,246	3.13%	$176	$49,180	-0.28%	58
  59	Oklahoma City, OK	$129,400	$27,412	$16,124	3.11%	$443	$48,847	-0.43%	59
  60	Wichita, KS	$111,300	$29,013	$15,121	3.22%	$386	$48,767	0.05%	61
  61	Milwaukee, WI	$95,600	$30,218	$14,688	2.46%	$301	$48,513	-0.99%	60
  62	Tucson, AZ	$151,300	$27,464	$14,547	2.64%	$487	$47,856	-1.60%	62
  63	El Paso, TX	$111,300	$28,853	$14,631	2.76%	$364	$47,852	-1.31%	63
  64	Dayton, OH	$50,400	$29,827	$15,667	3.13%	$173	$47,568	-0.10%	66
  65	Youngstown, OH	$32,400	$29,827	$16,246	3.13%	$111	$47,406	-0.11%	68
  66	Tulsa, OK	$107,300	$27,412	$15,468	3.11%	$367	$47,284	-0.45%	67
  67	Little Rock, AR	$130,100	$24,849	$17,333	2.46%	$409	$47,091	-1.33%	65
  68	Greenville, SC	$146,300	$27,179	$14,321	2.46%	$460	$47,020	-1.50%	64
  69	Detroit, MI	$37,200	$30,183	$14,860	3.26%	$130	$46,599	-0.30%	71
  70	Ogden, UT	$126,500	$26,449	$15,351	2.46%	$398	$46,573	-1.67%	69
  71	Chattanooga, TN	$124,900	$26,873	$14,475	3.16%	$430	$46,507	-0.61%	70
  72	McAllen, TX	$115,300	$28,853	$12,455	2.76%	$377	$45,833	-1.40%	73
  73	Greensboro, NC	$122,700	$26,627	$14,570	2.46%	$386	$45,827	-1.45%	72
  74	Knoxville, TN	$116,600	$26,873	$13,978	3.16%	$401	$45,667	-0.80%	74
  75	Memphis, TN	$73,700	$26,873	$15,189	3.16%	$254	$45,106	0.06%	76
  76	Augusta, GA	$80,000	$27,088	$14,718	2.89%	$266	$44,999	-0.80%	75
  77	Birmingham, AL	$61,800	$25,553	$15,835	4.00%	$236	$44,220	0.38%	77
  78	Jackson, MS	$58,100	$24,711	$15,759	3.31%	$204	$42,916	-0.81%	78

  Here’s the same data on an interactive map:

  What it means to afford living expenses

  We defined affordable living as meaning:

  • The ability to purchase an average home with a 20% deposit.
  • The ability to cover average per-person expenditures.
  • The ability to pay off annual non-mortgage related household debt.

  Methodology

  City home values sourced from Zillow (2016). State expenditures data sourced from the US Department of Commerce Bureau of Economic Analysis (2014). City debt data sourced from the Urban Institute Debt in America report (2013/2014). State interest rates sourced from Barchart (2016). Two separate methods were used to calculate the required salary to live in each city.

  Method 1 : Mortgage repayments + expenditures + debt

  Annual mortgage repayments with 20% deposit based on the median house price in each city and the average interest rate in each state + average non-housing expenditures in the state + average non-mortgage related debt in the city.

  Method 2: Minimum salary for mortgage

  The minimum salary required to purchase an average home was calculated using the industry standard 28% debt-to-income ratio. The larger of the two results was used as the Required Salary in each city. Method 1 was used for all cities except Los Angeles, New York, San Diego, San Francisco, San Jose and Seattle.

  **Expenditure included

  Personal consumption expenditures

  When it comes to things you and your family spend money on to live day to day, you’re looking at your expenses, including:

  Goods

  • Vehicles, gas and maintenance
  • Furniture and appliances
  • Pet care
  • Groceries
  • Clothing and footwear
  • Gasoline and other energy goods

  Services

  • Household bills such as gas, electricity and telephone
  • Health care
  • Bus, Uber or taxi
  • Gym membership or clubs
  • Dining out
  • Insurance and financial services

  Related

  • What’s the difference between a personal loan and a mortgage?
  • Compare top mortgages
  • What’s an FHA loan?

  • Personal loans vs. home equity loans
  • Your complete guide to choosing homeowners insurance

• 2016

  2016 data

  It can be easy to get caught up with the allure of a potential new neighborhood. You’ve found an affordable property in a secure community with access to public transportation. It’s located in a residential area, but conveniently close to shopping, restaurants and schools a walk away. However, affording the purchase price may not be enough to kick-start the American dream.

  By analyzing city and state data sourced from Zillow, the US Bureau of Economic Analysis, Urban Institute and Barchart, we’ve calculated how much you’d need to earn to live comfortably in nearly 80 cities across the United States. Halt your house hunting and check out how much you need to earn to buy a home and live comfortably in your city of choice.

  Higher home values require higher salaries

  Among our findings is that in 6 of the top 10 cities — San Francisco, San Jose, Los Angeles, San Diego, New York City and Seattle — you need to earn a higher salary due to higher home values. This means that the salary required for you to get a mortgage for the average home is higher than the salary required to cover mortgage payments and average debts and expenditures.

  Life is expensive, but just how expensive? Read on to learn more about what we’ve discovered.

  Key findings

  • San Francisco topped our list, with a huge salary of $180,600 required simply to buy an average home costing $1,119,500.
  • San Jose and Los Angeles came in a distant second and third, with $129,864 and $90,244 respectively required to purchase a home.
  • Californian cities took 4 places in the top 10 most expensive cities we analyzed.
  • The cheapest city analyzed was Jackson, Mississippi, where citizens can live comfortably on $43,265.

  What does it mean to “live comfortably”?

  For this analysis, we assumed that living comfortably includes the ability to purchase a home (presuming a 20% deposit has been saved), cover average per-person expenditures and pay off annual non-mortgage-related household debt.

  We based our analysis on:

  • Median house prices
  • Average 30-year 20% deposit interest rates in the state
  • Mortgage payments, including mortgage interest
  • Average non-mortgage debt in the city
  • Average non-housing expenditures in the state

  Three tips to help your comfortable living

  1. Sell your old items

  If you’re hoarding items you haven’t used in years, it’s time to sell them for some spare cash. Declutter your home and advertise your unused goods online, or get the whole family involved with a garage sale. There’s a market for almost everything, so store items you aren’t fond of and set an annual date to bulk sell.

  2. Consolidate your debt

  If you’re struggling against existing debt, consider a balance transfer card. This type of card allows you to transfer your debt into one place and pay it back at a low (or even no) interest rate for a specified time. Set up automatic deductions to ensure you don’t miss repayment dates.

  3. Don’t pay full price

  Clip coupons, browse discount sites and actually look through your junk mail before tossing it in the trash — every deal counts. Although it may feel overwhelming to begin, after a couple of times seeking out discounts, you’ll know exactly where to find the best deals on your weekly staples. You could even see yourself saving hundreds a month.

  US cities by required salary

  Here’s our full list of cities included in the study. Search for your hometown, or click any column heading to sort that column’s data.

  Search

  Rank	City	Home value	Home deposit	Nonhousing expenditure	Nonmortgage debt	Interest rate	Required salary	Median state household income as % of required salary
  1	San Francisco, CA	$1,119,500	$895,600	$29,842	$16,230	3.88%	$180,600	34%
  2	San Jose, CA	$805,000	$644,000	$29,842	$15,220	3.88%	$129,864	47%
  3	Los Angeles, CA	$559,400	$447,520	$29,842	$14,407	3.88%	$90,244	68%
  4	Washington, DC	$502,600	$402,080	$45,366	$18,700	3.42%	$85,517	81%
  5	San Diego, CA	$525,800	$420,640	$29,842	$16,284	3.88%	$84,823	72%
  6	New York, NY	$605,000	$484,000	$35,943	$16,255	2.76%	$84,791	69%
  7	Seattle, WA	$525,900	$420,720	$32,429	$17,939	3.78%	$83,811	72%
  8	Boston, MA	$477,100	$381,680	$39,481	$18,491	3.82%	$79,366	85%
  9	Worcester, MA	$191,100	$152,880	$39,481	$17,714	3.82%	$65,764	103%
  10	Denver, CO	$327,400	$261,920	$31,564	$18,045	3.86%	$64,362	92%
  11	Portland, OR	$340,800	$272,640	$29,704	$16,069	3.82%	$61,055	83%
  12	Albany, NY	$157,400	$125,920	$35,943	$18,676	2.76%	$60,796	97%
  13	New Haven, CT	$151,000	$120,800	$36,896	$17,011	3.64%	$60,530	115%
  14	Colorado Springs, CO	$217,900	$174,320	$31,564	$18,584	3.86%	$59,967	99%
  15	Springfield, MA	$127,900	$102,320	$39,481	$14,596	3.82%	$59,812	113%
  16	Virginia Beach, VA	$246,800	$197,440	$30,743	$17,331	3.75%	$59,047	110%
  17	Riverside, CA	$310,100	$248,080	$29,842	$14,849	3.88%	$58,698	105%
  18	Hartford, CT	$89,500	$71,600	$36,896	$17,314	3.64%	$58,136	120%
  19	Sacramento, CA	$253,100	$202,480	$29,842	$15,880	3.88%	$57,155	108%
  20	Chicago, IL	$200,300	$160,240	$31,693	$16,483	3.71%	$57,038	100%
  21	Charleston, SC	$254,300	$203,440	$27,179	$18,434	3.76%	$56,933	79%
  22	Pittsburgh, PA	$106,100	$84,880	$32,401	$19,822	3.70%	$56,911	93%
  23	Syracuse, NY	$79,000	$63,200	$35,943	$17,865	2.76%	$56,908	103%
  24	Philadelphia, PA	$121,600	$97,280	$32,401	$18,688	3.70%	$56,462	94%
  25	Rochester, NY	$64,200	$51,360	$35,943	$17,611	2.76%	$56,073	105%
  26	Providence, RI	$156,600	$125,280	$32,299	$16,425	3.72%	$55,661	101%
  27	Allentown, PA	$103,400	$82,720	$32,401	$18,341	3.70%	$55,311	96%
  28	Harrisburg, PA	$66,700	$53,360	$32,401	$19,874	3.70%	$55,222	96%
  29	Spokane, WA	$149,300	$119,440	$32,429	$16,045	3.78%	$55,136	109%
  30	Baltimore, MD	$109,800	$87,840	$32,314	$17,663	3.84%	$54,913	135%
  31	Madison, WI	$206,900	$165,520	$30,218	$15,348	3.62%	$54,619	97%
  32	Omaha, NE	$140,500	$112,400	$31,234	$17,138	3.75%	$54,619	96%
  33	Richmond, VA	$152,400	$121,920	$30,743	$17,088	3.75%	$54,607	119%
  34	Jacksonville, FL	$132,300	$105,840	$29,594	$17,919	3.84%	$53,460	88%
  35	Stockton, CA	$218,200	$174,560	$29,842	$13,508	3.88%	$53,206	116%
  36	Tampa, FL	$152,800	$122,240	$29,594	$16,596	3.84%	$53,058	89%
  37	Bakersfield, CA	$208,400	$166,720	$29,842	$13,680	3.88%	$52,935	116%
  38	Scranton, PA	$81,100	$64,880	$32,401	$16,942	3.70%	$52,927	100%
  39	Phoenix, AZ	$184,900	$147,920	$27,464	$17,126	3.86%	$52,922	94%
  40	Orlando, FL	$146,400	$117,120	$29,594	$16,464	3.84%	$52,639	90%
  41	Raleigh, NC	$198,200	$158,560	$26,627	$17,144	3.75%	$52,583	89%
  42	Columbus, OH	$108,400	$86,720	$29,827	$17,768	3.68%	$52,373	93%
  43	Des Moines, IA	$114,000	$91,200	$29,813	$16,906	3.53%	$51,652	102%
  44	Cincinnati, OH	$110,900	$88,720	$29,827	$16,902	3.68%	$51,617	95%
  45	Atlanta, GA	$180,000	$144,000	$27,088	$16,480	3.73%	$51,551	96%
  46	Columbia, SC	$125,200	$100,160	$27,179	$18,661	3.76%	$51,413	88%
  47	Fresno, CA	$186,600	$149,280	$29,842	$12,899	3.88%	$51,170	120%
  48	Nashville, TN	$188,200	$150,560	$26,873	$15,882	3.77%	$51,143	87%
  49	Charlotte, NC	$162,900	$130,320	$26,627	$17,163	3.75%	$51,032	91%
  50	Las Vegas, NV	$192,900	$154,320	$27,557	$14,692	3.93%	$51,015	102%
  51	Houston, TX	$142,000	$113,600	$28,853	$15,332	3.84%	$50,568	104%
  52	Akron, OH	$61,000	$48,800	$29,827	$18,018	3.68%	$50,534	97%
  53	Lakeland, FL	$122,000	$97,600	$29,594	$15,397	3.84%	$50,475	94%
  54	Dallas, TX	$133,000	$106,400	$28,853	$15,495	3.84%	$50,326	104%
  55	Kansas City, MO	$107,300	$85,840	$29,362	$16,211	3.69%	$50,308	95%
  56	Grand Rapids, MI	$108,600	$86,880	$30,183	$15,109	3.65%	$50,061	98%
  57	Toledo, OH	$56,700	$45,360	$29,827	$17,330	3.68%	$49,656	98%
  58	Cleveland, OH	$50,900	$40,720	$29,827	$17,246	3.68%	$49,317	99%
  59	Oklahoma City, OK	$125,600	$100,480	$27,412	$16,124	3.66%	$49,059	94%
  60	Milwaukee, WI	$93,500	$74,800	$30,218	$14,688	3.62%	$48,997	108%
  61	Wichita, KS	$105,400	$84,320	$29,013	$15,121	3.61%	$48,740	106%
  62	Tucson, AZ	$147,000	$117,600	$27,464	$14,547	3.86%	$48,635	103%
  63	El Paso, TX	$111,300	$89,040	$28,853	$14,631	3.84%	$48,487	108%
  64	Greenville, SC	$140,100	$112,080	$27,179	$14,321	3.76%	$47,736	94%
  65	Little Rock, AR	$126,100	$100,880	$24,849	$17,333	3.66%	$47,727	86%
  66	Dayton, OH	$48,100	$38,480	$29,827	$15,667	3.68%	$47,614	103%
  67	Tulsa, OK	$105,000	$84,000	$27,412	$15,468	3.66%	$47,497	97%
  68	Youngstown, OH	$31,400	$25,120	$29,827	$16,246	3.68%	$47,457	103%
  69	Ogden, UT	$124,400	$99,520	$26,449	$15,351	3.80%	$47,365	126%
  70	Chattanooga, TN	$122,200	$97,760	$26,873	$14,475	3.77%	$46,794	95%
  71	Detroit, MI	$38,600	$30,880	$30,183	$14,860	3.65%	$46,738	105%
  72	Greensboro, NC	$119,300	$95,440	$26,627	$14,570	3.75%	$46,501	100%
  73	McAllen, TX	$115,100	$92,080	$28,853	$12,455	3.84%	$46,482	113%
  74	Knoxville, TN	$116,300	$93,040	$26,873	$13,978	3.77%	$46,034	97%
  75	Augusta, GA	$80,200	$64,160	$27,088	$14,718	3.73%	$45,363	109%
  76	Memphis, TN	$67,700	$54,160	$26,873	$15,189	3.77%	$45,079	99%
  77	Birmingham, AL	$60,200	$48,160	$25,553	$15,835	3.71%	$44,051	99%
  78	Jackson, MS	$62,800	$50,240	$24,711	$15,759	3.76%	$43,265	91%

  Source: finder.com’s analysis of data from Zillow, the US Department of Commerce, the Urban Institute and Barchart.

  Take a look at this same data on the following interactive map.

  Methodology

  We sourced city home values from Zillow (2015) and state expenditure data from the US Department of Commerce Bureau of Economic Analysis (2014). For city debt data, we used information from the Urban Institute’s 2013–2014 Debt in America report. State interest rates were sourced from Barchart (2015).

  We used two distinct methods to calculate the salaries required to live comfortably in each city.

  Method 1: Mortgage payments + expenditures + debt
  Yearly mortgage payments with 20% deposit based on the median house price in the city and the average interest rate in the state, plus average non-housing expenditures in the state, plus average non-mortgage-related debt in the city.
  Method 2: Minimum salary for mortgage
  The minimum salary required to purchase an average home was calculated using the industry standard 28% debt-to-income ratio.
  The larger of the two results was used as the required salary for each city. In practice, this meant that Method 1 was used for all cities except Los Angeles, New York, San Diego, San Francisco, San Jose and Seattle.

  **Expenditure included.

  Personal consumption expenditures

  When it comes to things you and your family spend money on to live day to day, you’re looking at your expenses, including:

  Goods

  • Vehicles, gas and maintenance
  • Furniture and appliances
  • Pet care
  • Groceries
  • Clothing and footwear
  • Gasoline and other energy goods

  Services

  • Household bills such as gas, electricity and telephone
  • Health care
  • Bus, Uber or taxi
  • Gym membership or clubs
  • Dining out
  • Insurance and financial services

For all media inquiries, please contact:

Richard Laycock, Insights editor and senior content marketing manager

E: uspr@finder.com