Orlando ranks 9th in terms of salary needed to buy a home

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Money 4

From The Orlando Sentinel

Middle-income families are on pace to afford a median-priced home in Orlando and metro areas, according to a recent study from mortgage resource website HSH.com.

Average income and median home prices vary from city to city, but HSH, a publisher of mortgage industry data, determined the annual before-tax income required to afford an average priced home in 27 U.S. metros.

The figures factor in 2014 fourth-quarter average interest rate for a 30-year, fixed-rate mortgage, along with the mortgage’s principal, interest, tax and insurance payment.

According to the findings, you need to earn $42,143.30 to afford a median-priced home in Orlando, which is listed at $180,000.

That puts Orlando ninth on the list of 27 U.S. cities in terms of the lowest salary needed to buy an average home. Monthly payments using these numbers total $983.34, with a 30-year fixed mortgage rate of 4.07 percent.

According to the United States Census Bureau, Orlando’s median household income from 2009-2013 was $42,147, just $3.70 more than the needed salary listed in the study.

Compare those numbers to other Florida cities listed in the study like Tampa ($37,732.20 needed salary) and Miami ($58,431.48).

The “most affordable” city on the list is Pittsburgh, where you only need to earn $31,716.32 to afford the median-priced home in the Steel City ($135,000). The cheapest median cost is Cleveland at $121,200, but the salary needed is slightly more than Pittsburgh at $32,010.41, due to higher mortgage rates.

Cities in California dominate the list of highest salaries needed to afford the average home, with Los Angeles, San Diego and San Francisco taking the top three spots.

You must earn an annual before-tax income of $142,448.33 to afford the median-priced home in San Francisco, which is $742,900.

View the gallery above (available here for our mobile users) to find out the salaries needed to buy a home in 27 U.S. metros.

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