Study reveals the staggering annual salary needed to purchase a house in the top 10 wealthiest American cities
With the current economic trends, there is a financial toll on several adults. Something like buying and owning a home was a necessity in the earlier decades but the rising costs today have made it a luxury. With rent getting beyond affordable, buying homes is out of the question for the general public. A study revealed that one requires a minimum of $136,000 in their annual income to afford a home in one of the lavish cities of the U.S., per Visual Capitalist. The results, obtained by GoBankingRates, were collected from the highest average household income for cities with populations between 5,000 and 100,000.
Another report revealed that the last few years have seen a rapid rise in home rates so much that costs have almost doubled, per The Daily Mail. The analysis further helped calculate the average salary a person would require to be able to afford a home in wealthy cities like Palm Beach, Paradise Valley and so on. This calculation also excludes P&I (principal and interest), HOA (homeowners association) fees, and property taxes. The salary ranges are all 6-figures and is a clear sight of how financially burdensome something as crucial as a home is.
1. Tiburon, California
Being first on the list as the lowest among the others, this city has an average household income of $312,000. Per the calculations, the salary required to get a home in this city is no less than $662,000.
2. Paradise Valley, Arizona
This city has a slightly higher average household income rate of $386,000. However, the salary range moves up to $683,000.
3. Los Altos, California
Los Altos has a $401,000 average household income, moving the salary range around $150,000 higher to $851,000.
4. Hillsborough, California
With a high average household income rate, the salary required is also a significantly increasing amount. The household income is $540,000, the salary required reaches one million dollars.
5. Montecito and Saratoga, California
These two cities have very similar ranges. The household income of Montecito is around $327,000 and that of Saratoga is $329,000. This makes the salary range requirement for buying a house $1.1 million and $771,000, respectively.
6. Los Altos Hill and Woodside, California
The next two cities have a very close household average income range of $460,000 and $446,000, respectively. The salary needed to purchase a home in these pricey neighborhoods is $1.1 million and $728,000, respectively.
7. Atherton, California
The prices don’t stop at the whopping 1 million dollars and keep increasing. Atherton has a high range of average household income of $595,000 which pushes the salary range to $1.5 million and nothing below.
8. Palm Beach, Arizona
If all of these seemed to freak you out, there’s just one more baffling city. This city has an average household income of $366,000. However, the salary required comes to a solid $2.3 million.
Studies showed that most cities range between $350,000 and one million dollars. However, there are a handful of exceptions. San Diego, Los Angeles and Honolulu banked a spot among the lowest income required ranging between $250,000 and $265,000.