Skip to main content

How much salary does it take to buy a median-priced home?

  • Author:
  • Updated:
    Original:

A company that tracks mortgage rates around the country has studied how much income is needed to buy a median-priced home in America's 25 largest metro areas.

And the numbers from HSH.com place the Twin Cities squarely in the middle of the pack in terms of affordability.

Using fourth-quarter numbers from the National Association of Realtors, HSH calculated the payments on a median-priced home paying the average interest on a 30-year fixed rate mortgage with a 20 percent downpayment.

In the 13-county Twin Cities area, HSH says you'd need to earn $33,800.

HSH cautions, though, that a larger income will be needed to cover taxes, insurance and other living expenses, while also paying down any other debts.

That median-priced home costs $197,000 in the Twin Cities and the monthly payment would be $788.67.

That ranks 12th among the metro areas. In its analysis, HSH notes that mortgage rates fell by one-third of a point in the Twin Cities in the fourth quarter, which helped affordability.

The most affordable market for home ownership? Cleveland, Ohio. The HSH calculations show a salary of $19, 435 would be sufficient to buy a median-priced home in Cleveland. San Francisco is another story. More than $115, 000 is what you'd need to earn to make the payments on a typically-priced Bay Area home.

In Minnesota Realtors reported January home sales fell 13 percent compared to the same month the year before. They attributed the drop to frigid weather that was not conducive to home shopping.

Realtors in Wisconsin also reported a drop last month, although KDAL reported some of the counties closest to Duluth showed a rise in sales.

Around the country home prices are higher than a year ago. Many homeowners are happy to see their equity grow as those prices rise. But on the other hand, home sales may be stifled if prices rise faster than income.

Next Up

Governor Tim Walz

Walz, judge in dispute over Feeding Our Future case

A Ramsey County judge disputed Walz's claims that the Minnesota Department of Education was ordered by the court to resume payments to Feeding Our Future.

ambulance

2 dead, 1 with life-threatening injuries in Hwy. 7 crash

Both drivers were not wearing their seatbelt, according to the State Patrol.

Screen Shot 2022-09-25 at 11.50.33 AM

15-year-old Richfield football game shooting suspect arrested

A 16-year-old accused of instigating the altercation is also in custody.

Police tape

3 arrested after homicide, burglary in Inver Grove Heights

Charges of first-degree murder and first-degree burglary are pending.

fire, firefighter

Woman dies after becoming trapped in Waseca house fire

Police tried to enter the home but heavy smoke prevented them from getting inside.

ambulance

1 dead, 2 with life-threatening injuries in Minnesota crash

The crash happened just after 7:30 p.m. Friday.

Image (1)

School bus carrying students plunges into river southwest of Fargo

None of the kids suffered life-threatening injuries, though some were taken to area hospitals.

Richfield High School

Richfield High School cancels weekend events after shooting

Two men were shot outside the school's football stadium

Screen Shot 2022-09-23 at 10.21.38 PM

Sound of shots, mass panic at Richfield football game streamed live on YouTube

Gunfire caused panic at a varsity football game Friday night.

J. Gordon

K-9 search leads to $36K fentanyl seizure during traffic stop

A traffic stop was made after the vehicle was seen speeding through the area.

Related