Buying a home is something tons of people want to do. It is a huge accomplishment for many but with that comes a pretty steep price tag as well.
The website HowMuch recently took the time to put together an infographic on how much a person’s annual salary needs to be in order to buy an at least ‘average’ home. Of course, homes in highly populated areas are more expensive and the east and west coast are quite on up there. Some states do not look too bad in comparison. At the top of the list, we have Hawaii in which you would need at least $153,000 a year to buy a home.
According to HowMuch the top five places you need the highest salaries are:
1. Hawaii ($153,520 for a home worth $610,000)
2. Washington ($138,440 for a home worth $549,000)
3. California ($120,120 for a home worth $499,900)
4. Massachusetts ($101,320 for a home worth $419,900)
5. Colorado ($100,200 for a home worth $415,900)
And the top five places where you would need to lowest salaries are:
1. West Virginia ($38,320 for a home worth $149,500)
2. Ohio ($38,400 for a home worth $149,000)
3. Michigan ($40,800 for a home worth $160,000)
4. Arkansas ($41,040 for a home worth $161,000)
5. Missouri ($42,200 for a home worth $165,900)
This data was collected by using information present on the real-estate website Zillow. From there this information was plugged into a mortgage calculator and payments were figured up. This going on the assumption that the buyer is contributing at least a ten percent down payment. Once the map was constructed people across the states began to squirm, it is hard to look at.
This map also goes off of the recommendation that we should not look to buy a home that costs over 30 percent of our gross income as well. It is interesting to compare states and see which ones are cheaper as far as purchasing a home goes. Some states I assumed would be more expensive were not. There are variants to each state as well you have to consider the more populated areas as opposed to those with fewer people. In Colorado, for instance, Denver is the reason behind the steep home price, realistically you could find something outside of Denver for cheaper within reason.
Go over the map above and let us know if you think it is accurate. Was your state dead on or do you think it is a bit off? I for one am blown away, it is interesting how something so essential can cost so much. No wonder real-estate agents make so much money.
(Image Via: Howmuch.net)