To calculate the salary a home buyer would need to be able to afford the median-priced home in 27 metro areas, the mortgage information site took data from the National Association of Realtors’ first-quarter median home prices and their own first-quarter average interest rates for a 30-year fixed rate mortgage. HSH.com was then able to determine how much of a buyer’s salary would be required to afford the base cost of owning a home, which includes the principle, interest, taxes and insurance payments.
Atlanta ranked as the sixth least expensive city on the list, with buyers needing to make $34,200 per year to afford the media-priced home of $141,900. Mortgage rates in Atlanta averaged just 4.4 percent at the time of the survey, which were down 0.03 percent from the fourth quarter of 2013. The average monthly payment for a median-priced home in Atlanta would be just $797.61.
The least expensive city on the list is Cleveland, Ohio, which has a median home price of $102,100. Prospective home buyers would need to earn an annual salary of $29,800 to be able to afford a home.
In contrast, the most expensive city surveyed was San Francisco. Here, buyers would need to earn a whopping $137,100 to be able to afford the median-priced home of $679,800.
Overall, HSH.com’s survey shows that buying a home in metro Atlanta remains a very affordable option for most prospective buyers. In addition, the area has seen long-term home price growth, which is a positive sign for the real estate market in Atlanta. To learn more about the real estate market in Atlanta or to view market news, click here.