Calculating Your Income Requirements for Homeownership on the East Coast
The reality is that the average American household earns about $40,000 less than what’s needed to afford a typical home. Home prices vary across the U.S., but many popular East Coast cities are more expensive than the national average.
### Rising Home Prices and High Mortgage Rates
The main reasons homes are becoming less affordable are rising prices and high mortgage rates. The Federal Reserve Bank of St. Louis reports that the average rate for a 30-year fixed mortgage is 6.9%. Although this is lower than the rates in 2023, which peaked at over 8%, it’s still very high and significantly increases monthly mortgage payments.
In August 2023, the average U.S. home sold for about $420,000, which is a 3% increase from the previous year and just $12,000 below the all-time high reached in mid-2022.
### Home Prices in 16 East Coast Cities
According to Visual Capitalist, here are the home prices and the average annual salary needed to afford a home in 16 East Coast cities, ranked from highest to lowest salary:
– **Boston, Massachusetts**
– 2023 median home value: $644,400
– Average annual salary needed: $165,239
– **New York, New York**
– 2023 median home value: $577,300
– Average annual salary needed: $160,233
– **Washington, D.C.**
– 2023 median home value: $557,200
– Average annual salary needed: $139,911
– **Miami, Florida**
– 2023 median home value: $560,000
– Average annual salary needed: $137,574
– **Providence, Rhode Island**
– 2023 median home value: $417,000
– Average annual salary needed: $112,281
– **Orlando, Florida**
– 2023 median home value: $419,900
– Average annual salary needed: $104,772
– **Raleigh, North Carolina**
– 2023 median home value: $420,000
– Average annual salary needed: $102,572
– **Tampa, Florida**
– 2023 median home value: $390,000
– Average annual salary needed: $97,387
– **Hartford, Connecticut**
– 2023 median home value: $314,900
– Average annual salary needed: $93,861
– **Charlotte, North Carolina**
– 2023 median home value: $387,200
– Average annual salary needed: $93,735
– **Jacksonville, Florida**
– 2023 median home value: $370,000
– Average annual salary needed: $93,422
– **Baltimore, Maryland**
– 2023 median home value: $357,800
– Average annual salary needed: $93,378
– **Atlanta, Georgia**
– 2023 median home value: $354,300
– Average annual salary needed: $89,198
– **Richmond, Virginia**
– 2023 median home value: $362,300
– Average annual salary needed: $88,769
– **Philadelphia, Pennsylvania**
– 2023 median home value: $315,300
– Average annual salary needed: $87,293
– **Virginia Beach, Virginia**
– 2023 median home value: $313,200
– Average annual salary needed: $79,336