It may be better to purchase sooner than later!

Denver is the most expensive inland city to buy a house, according to a study released Tuesday by, a mortgage information website. looked at mortgage rates and median home prices in 25 of the country’s largest metropolitan areas to determine how much salary is needed to cover the principal and interest payments on the average home. Property taxes, insurance and other expenses do not factor in this calculation.

Chuck Strauss Listing

Denver was wedged between Portland, Ore., and Seattle as the 18th most affordable city out of 25, requiring an annual salary of $48,122 to afford a median-priced home here. (Entire list below.) used a mortgage rate of 4.43 percent and a median home price of $279,300 to calculate its Denver salary requirement.

(That seems like a low salary needed to afford the payments for a $279,300 home, but I just report what they tell me.)

In fact, reports that a 2.65 percent drop in the media home price in Denver in the fourth quarter of 2013 and a slight drop in mortgage rates equated to drop of about $2,500 in the salary requirement here.

“The Denver housing market has been known for its consistency — prices never rose too fast or fell too hard. The depreciation in quarterly prices was milder compared with some cities,” said in the report.

Nationally, found that affordability has increased significantly since the third quarter of 2013 as home prices and mortgage rates have fallen.

Not so much in San Francisco, though, where you’d need a salary of $115,510 to afford a median-priced home at $682,410.

If you want a bargain, try Ohio, which had the top two most affordable cities on the list — Cleveland and Cincinnati.

Here’s the top 25 metro areas, ranked in order of affordability in terms of annual salary requirements:

  1. Cleveland: $19,435.17
  2. Cincinnati: $22,226.95
  3. St. Louis: $22,397.54
  4. Atlanta: $24,390.94
  5. Tampa: $24,650.88
  6. Orlando: $28,298.47
  7. San Antonio: $29,305.47
  8. Dallas: $29,751.24
  9. Houston: $31,298.99
  10. Chicago: $32,388.90
  11. Phoenix: $32,811.94
  12. Minneapolis: $33,800.09
  13. Philadelphia: $36,836.47
  14. Baltimore: $41,155.40
  15. Sacramento: $42,832.20
  16. Miami: $43,918.66
  17. Portland, Ore.: $45,872.78
  18. Denver: $48,122.72
  19. Seattle: $59,129.86
  20. Washington, D.C.: $62,809.63
  21. Boston: $63,673.13
  22. New York City: $66,167.27
  23. Los Angeles: $72,126.90
  24. San Diego: $81,570.40
  25. San Francisco: $115,510.06

How did determine these salaries? took the National Association of Realtors’ 2013 fourth-quarter data for median home prices as well as our 2013 fourth-quarter average interest rate for 30-year, fixed-rate mortgages to determine how much money homebuyers in 25 major cities would need to earn in order to purchase the median-priced home in their market.

We determined the after-tax income required to cover only the mortgage’s principal and interest payment. We used standard 28 percent “front-end” debt ratios, and a 20 percent down payment subtracted from the median home price data to arrive at our figures.

There is no doubt that your income will need to be much higher, possibly even double or triple this level, to cover the needed taxes, insurances and other expenses to live in the home, plus the down payment and any other debts you might have. Since those are highly variable, down to even the individual property level and personal choice, there is no adequate way to factor for them.

That’s where you come in. We’ve given you the basic, bottom-line income you need to cover the mortgage; to this, add the annual cost of taxes and insurance to arrive at a realistic cost to obtain a home in your chosen city. Depending upon where you are, these can add up to as much as the mortgage payment itself, or more!

The best bet is to get a payment estimate up front when you request your credit report.

To find out how much you qualify for  CLICK HERE

A Shared Post from:  Reporter- Denver Business Journal




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