MReport recently released a study that reveals the salary needed to ‘comfortably’ purchase a home. Experts at wrote a report highlighting how hopeful homebuyers in certain cities in the U.S. would have to earn each year in order to own a home. Finally taking the leap and purchasing your own home is a huge step. It can be overwhelming to think about making mortgage payments, on top of other living expenses. Many Americans are concerned their salaries will stretch too thin if they add a mortgage payment. The study focused on 78 different cities across the nation, then calculated the salaries that would be necessary to purchase a home without getting in over your head. defined “living comfortably” in each city. This included the median house price in the area, average 30-year interest rate based on a 20% deposit, and mortgage payments including interest.


A key revelation from the report was that values of home have risen in 2020, while the 78 cities saw the average home loan interest rate fall. The salary that is needed to ‘live comfortably’ has decreased in most cities in the past two years. The report included the cities that required the highest salaries in order to live there. Four of the top five most expensive cities are in California. The top city was San Francisco, where a homeowner would need to make roughly $206,760 each year to buy an average home. San Jose was second from the top and Americans would need a salary of $151,619 to purchase a home. The cheapest city to own a home is Jackson Mississippi. A homeowner would need a salary around $44,129 to live comfortably.   

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