Here’s how much you need to earn per year to afford to own a home in Youngstown
When considering homeownership, budgeting starts with asking: What percentage of my income should go to paying the mortgage every month?
Experts recommend not spending more than 28% of your gross monthly income on housing costs.
ConsumerAffairs analyzed monthly home payments in 200 of the largest U.S. metros to find the lowest and highest income levels needed to afford a home around the nation.
Researchers started by looking at how the national average household income compares to home prices and how much a homeowner would need to make each year to afford a home.
The most recent data from the U.S. Census Bureau shows the national average household income per year is $81,604.
Considering the new homeowner will make a 10% down payment, the average American household needs to earn $120,796 a year to afford their new home.
This means the “average household income is still well short of the income needed to keep a monthly mortgage payment in line with the 28% rule,” according to ConsumerAffairs.
Nadia Evangelou is the principal economist and director of real estate research at the National Association of Realtors.
“Affordability has improved modestly based on our Housing Affordability Index, but it’s still below normal levels,” Evangelou said.
Researchers found that Youngstown is the second-most affordable metro for homeowners. Here’s why:
In Youngstown, the median household income is about $57,812 each year.
On average, home sale prices are $164,216. ConsumerAffairs reported that the average income needed to afford a home in Youngstown is at $59,433 each year.
The monthly total for housing costs comes out to $1,387. According to this data, homeowners only need to earn 2.8% higher than Youngstown’s median household income to settle down in a new home.
The analysis revealed the Midwest is where homes are the most affordable, with Huntington, West Virginia at the top.
In Huntington, the average income is $53,650 a year to afford a home with a 10% down payment.
After Youngstown, the most affordable area to own a home in Ohio is Canton.
