HSH.com has been around since 1979 (yes, pre-internet) and acts as a mortgage research site with information and mortgage calculators (sorta like Bankrate.com). They recently published data on what salary it would take to afford a median-priced home in the top 27 metropolitan markets by population.
You may recall, last September I published a piece titled, “How Much Money Does it Take to Live Like a Human in Dallas?” Based on research provided by the Economic Policy Institute, metro Dallasites renting housing for two adults and two children needed $61,150 after taxes to enjoy “a secure yet modest living standard.” This would include transportation, childcare, healthcare, food and utilities.
HSH.com reports that homebuyers have it much worse.
By their calculations (with data supplied by the National Association of Realtors), a salary of $54,764.49 would be required to pay the mortgage, taxes and insurance on a median-priced Dallas metro home costing $232,200. They’re assuming a 30-year mortgage and 20 percent down. Those only able to put 10 percent down would need $62,663 in salary. A 15-year mortgage? Dream on. Transportation, childcare, healthcare, food, utilities, beer and skittle money? That would come out of the remaining $1,850 per month in salary.
Using their calculations, housing eats 41 percent of income after taxes. According to the federal government, this falls between the 30 percent that’s considered “cost-burdened” and the 50 percent that constitutes “severely cost-burdened.” In other words, not the life of Riley.
It could be worse. You’d need over $100,000 more in salary to live an equally uncomfortable life in the San Francisco area. Only have a 10 percent down payment? You’ll need $140,000 added to your Dallas salary. The median home price in the Bay Area stands at $885,600. That represents a rise of nearly 10 percent in the past year.
But if you want to save some cold cash and can earn as much salary, the upper Midwest provides some options. And only some of the savings would go to snow shovels and parkas.
Remember: High-rises, HOAs and renovation are my beat. But I also appreciate modern and historical architecture balanced against the YIMBY movement. If you’re interested in hosting a Candysdirt.com Staff Meeting event, I’m your guy. In 2016, my writing was recognized with Bronze and Silver awards from the National Association of Real Estate Editors. Have a story to tell or a marriage proposal to make? Shoot me an email sharewithjon@daltxrealestate.com.
