Want to own a home in Boston? You better be bringing home some big bucks in order to afford and keep it, according to a recent survey.
Mortgage research firm HSH.com recently released its quarterly “The Salary You Must Earn to Buy a Home in 27 Metros” report. The report analyzed the National Association of Realtors’ first-quarter data for median home prices and compared it to first-quarter average interest rates for 30-year fixed rate mortgages. The company then used the data to determine the annual salary needed to own a home in 27 major cities, including Boston.
With median home prices in Boston at $363,200 (a 9.3 percent increase from last year) and 30-year fixed mortgage rates of 4.47 percent, HSH.com determined the annual salary homeowners need to afford the principal loan, interest, taxes, and insurance payments on a Boston property is $79,820.01. This income allows for monthly payments of $1,862.47, according to the report.
Boston has the fifth highest salary required for homeownership on HSH.com’s list. The other cities in the top five include Los Angeles ($85,964.88), New York City ($89,788.69), San Diego ($98,534.22), and San Francisco ($137,129.55).
The city with the lowest salary requirement for homeownership is Cleveland, where the annual income needed for a home is $29,788.67. Median home prices in Cleveland are $102,100.
There is a silver lining in HSH.com’s report. According to their research, Boston home prices dropped by 2.18 percent from the previous quarter, which saves homeowners about $950.Sanjay Salomon can be reached at email@example.com. Follow him on Twitter @SanjaySalomon.