By Mike Sunnucks | Rose Law Group Reporter
It takes more income to afford a home and mortgage in Phoenix than Chicago, Houston and Philadelphia.
Still, the Valley compares favorably to California cities, New York, Dallas and Austin, according to a new study by SmartAsset.
The financial firm examined income levels required to buy an averaged priced home in the 15 largest U.S. cities.
One of SmartAsset’s analysis looks at income levels needed for housing along with another $1,000 in debt (such as car payments and credit cards).
In Phoenix, the average home price is $395,750 which translates into a $2,111 monthly payment with a 5.5% interest rate.
According to SmartAsset, that requires $103,700 in annual income with $1,000 debt — or $70,367 with no debt.
Phoenix also has a property tax rate of 0.60% and local tax costs are cheaper than other markets.
For example, SmartAsset found a $6,000 real estate tax difference between Phoenix ($1,496) and San Francisco ($7,347).
It requires $294,900 in annual income to afford an averaged priced house in San Francisco ($1.46 million) with $1,000 in debt.
SmartAsset projects it takes more than $214,000 in Los Angeles and more than $179,400 in New York to afford average priced homes in those coastal markets.
Phoenix has seen significant housing price increases.
That makes the Valley more expensive than Chicago, Philadelphia and some other markets in the SmartAsset analysis.
It requires $103,233 to buy an average home in Chicago, $82,867 in Jacksonville, $95,867 in Houston and $82,444 in Philadelphia with a $1,000 debt load.
For the full report — https://smartasset.com/data-studies/salary-needed-to-afford-home-payments-2022
