How much income is needed to afford a home in the USA
September 28, 2024
How much income is needed to afford a home in the USA
Posted by hosscannon
15 comments
So meaningless at the state level when you know that NYC is watered down by upper state NY villages.
$152,000. Not the most expensive! Yay …
Soooo, if I make enough to own a home in Oregon, that means I could own 2 homes in Iowa?
States can be very large. It also varies a lot by county and city as well
It’s true. I have a 795 credit score, earn 60k, have 110k ready as a down payment and all 6 loan officers I’ve met have denied me a mortgage for a 400k property. That’s the price of a starter within 90 minutes of where I work in Dallas, tx.
They all say it’s the first time in their careers they’ve denied people with my credentials.
I’m a Chemical Operator for a fortune 500 company in Dallas, TX that has reported consecutively earning its highest margins *ever* over the past 3 years. I earn $28/hr, which is high for this position (in the midwest & LCOL areas you can expect ~$18-22.5/hr max). It requires a degree in chemistry with experience with construction, plumbing and mechanics. The pay has largely remained unchange for more than 15 years; for that reason, I’m the last person in my position at the company.
What the company doesn’t know, is myself and the chemical engineer are fed up with this bullshit. The engineer is already on the search for his next job because he is tired of taking responsibility for maintaining a skeleton crew so the company can continue to squeeze employees for more profit and I’m tired of having ZERO advancement opportunities. I have 2 semesters left until I finish my 2nd degree (civil engineering) and this company can get fucked.
For anyone wanting to target my job skills, let’s just ignore my experience in plumbing, mechanics and construction: chemistry is a *weed-out* subject for most of the population, including the highest earners in the world. It’s absolutely not something *just anyone* can learn and do. Very few people can adequately and effectively grasp the most basic concepts… yet no one wants to pay for the knowledge and skill because “the pay has always been like this.”
Fun idea, but I think a continuous heat map would work better. There’s no point in aggregating the house prices along state lines.
I bet this isn’t thinking about using 30% Net income on all housing expenses including insurance and HOA/repairs
A 1,200 sq. ft. 1 bed, 1 bath ranch-style home on 1 acre of arable land, next to a road, with power access, costs about $85-95K to build yourself, in any state.
It’s been like that for over 30 years.
> The general mortgage affordability rule is to not spend more than 28% of your gross monthly income on home costs
Those rules haven’t been true for a long time. They are from a time when housing and incomes didn’t vary so much from location to location.
If you make $100k, you would be left with $72k.
If you make $200k, you’re left with $144k.
The person making $200k can afford to spend a much higher percentage of income than the lower income person.
Many expenses don’t scale with local cost of living. Everyone pays about the same thing for cars for example. People in California aren’t paying twice as much for a new Civic as people in Missouri.
Using percentage of income to determine how much home one can afford is just silly.
Is this averages medians or lows? You can definitely afford a home on az with less than 100k income
Important note! These numbers are for the median house. That means one can absolutely get a home and make less. Wish they had stated that information.
Lol at WA state $152k income. Seems inaccurate AF. What kind of home like a trap house? Or somewhere in eastern WA where nobody is living.
Average home in my neighborhood is $850k for a 1000 sq foot shack. Also wtf is up with Idaho $112k sounds insanely high for low earning potential state
Is Colorado really that expensive??? Was considering looking for jobs out there but I guess that’s another state of the table.
That map designer needs to learn about accessibility
15 comments
So meaningless at the state level when you know that NYC is watered down by upper state NY villages.
$152,000. Not the most expensive! Yay …
Soooo, if I make enough to own a home in Oregon, that means I could own 2 homes in Iowa?
States can be very large. It also varies a lot by county and city as well
It’s true. I have a 795 credit score, earn 60k, have 110k ready as a down payment and all 6 loan officers I’ve met have denied me a mortgage for a 400k property. That’s the price of a starter within 90 minutes of where I work in Dallas, tx.
They all say it’s the first time in their careers they’ve denied people with my credentials.
I’m a Chemical Operator for a fortune 500 company in Dallas, TX that has reported consecutively earning its highest margins *ever* over the past 3 years. I earn $28/hr, which is high for this position (in the midwest & LCOL areas you can expect ~$18-22.5/hr max). It requires a degree in chemistry with experience with construction, plumbing and mechanics. The pay has largely remained unchange for more than 15 years; for that reason, I’m the last person in my position at the company.
What the company doesn’t know, is myself and the chemical engineer are fed up with this bullshit. The engineer is already on the search for his next job because he is tired of taking responsibility for maintaining a skeleton crew so the company can continue to squeeze employees for more profit and I’m tired of having ZERO advancement opportunities. I have 2 semesters left until I finish my 2nd degree (civil engineering) and this company can get fucked.
For anyone wanting to target my job skills, let’s just ignore my experience in plumbing, mechanics and construction: chemistry is a *weed-out* subject for most of the population, including the highest earners in the world. It’s absolutely not something *just anyone* can learn and do. Very few people can adequately and effectively grasp the most basic concepts… yet no one wants to pay for the knowledge and skill because “the pay has always been like this.”
Fun idea, but I think a continuous heat map would work better. There’s no point in aggregating the house prices along state lines.
I bet this isn’t thinking about using 30% Net income on all housing expenses including insurance and HOA/repairs
A 1,200 sq. ft. 1 bed, 1 bath ranch-style home on 1 acre of arable land, next to a road, with power access, costs about $85-95K to build yourself, in any state.
It’s been like that for over 30 years.
> The general mortgage affordability rule is to not spend more than 28% of your gross monthly income on home costs
Those rules haven’t been true for a long time. They are from a time when housing and incomes didn’t vary so much from location to location.
If you make $100k, you would be left with $72k.
If you make $200k, you’re left with $144k.
The person making $200k can afford to spend a much higher percentage of income than the lower income person.
Many expenses don’t scale with local cost of living. Everyone pays about the same thing for cars for example. People in California aren’t paying twice as much for a new Civic as people in Missouri.
Using percentage of income to determine how much home one can afford is just silly.
Is this averages medians or lows? You can definitely afford a home on az with less than 100k income
Important note! These numbers are for the median house. That means one can absolutely get a home and make less. Wish they had stated that information.
Lol at WA state $152k income. Seems inaccurate AF. What kind of home like a trap house? Or somewhere in eastern WA where nobody is living.
Average home in my neighborhood is $850k for a 1000 sq foot shack. Also wtf is up with Idaho $112k sounds insanely high for low earning potential state
Is Colorado really that expensive??? Was considering looking for jobs out there but I guess that’s another state of the table.
That map designer needs to learn about accessibility
Yeah but how much to buy a house in Frame?