What you need to earn in order to buy a home in your market

Everyone wants the American dream of owning a home. It is getting harder and harder to afford one. The article linked below shows the actual numbers of what you will need to earn in order to buy a home in the 27 metro markets that were surveyed. Washington, DC compared to Atlanta, GA for instance requires you to earn just about double. Ouch!! Yet, if you are to want to buy in San Fran, compared to DC you need to now earn twice as much in San Fran compared to DC. SO just imagine you are working in Atlanta and own a nice house and take a job in San Fran. You will very likely need to spend 4 times what you spent in Atlanta. Yes your salary will go up, but not the 4 times that a house price will increase. 

This is one of the main reasons for the urbanization of major cities and the revitalization of older beat up neighborhoods that are well located geographically to the job centers. Home buyers are saying I can't or won't pay these exorbitant prices for a box, let me buy a house that has character, a neighborhood I can reinvigorate, all the while, saving money on the front end by a lower purchase price, and then also make money on the backside by having automatic equity most likely, by buying the emerging neighborhoods.

 

The City centers, urban neighborhoods have been and still are on the rise. So jump on the bandwagon and let's all have fun fixing up those beautiful, character filled homes in the established older neighborhoods.

http://www.hsh.com/finance/mortgage/salary-home-buying-25-cities.html