How Much You Need To Earn To Afford Home In Baltimore, DC Metros

BALTIMORE, MD — While home prices in the Baltimore area relatively affordable, they're continuing to rise, it's little wonder that the annual salary needed to afford a typical home in the region is nearly $67,000. In contrast, Washington, D.C., area prices are nearly $30,000 higher, putting it in the top 10 most expensive markets.

That's according to a new report by the mortgage resource website HSH.com, which used the latest available information on home prices, local property taxes and homeowner's insurance costs to calculate the income needed to qualify for a median-priced home.

According to the study, which used home-price data from the fourth quarter of 2018, the annual salary needed to buy a home in the Baltimore metro area is $66,445 with 20 percent down, or $76,241 at 10 percent down.

Meanwhile Washington, D.C., metro homebuyers need to earn $94,408 a year with 20 percent down. If homebuyers in the D.C. region put 10 percent down, the required salary increases to $109,000.

San Jose was the least affordable metropolitan area on the list, and Pittsburgh was the most affordable metropolitan area. The difference in salary required between the two areas to afford a home was a whopping $217,000, the study found.

According to the study, median home prices in the fourth quarter of 2018 were lower compared to the third quarter of 2018, but in many cases — including Baltimore and DC — year-over-year prices were higher.

San Jose was also the only metropolitan area to see a year-over-year decline in median home prices. The median home prices in all 49 other metro areas ranked in the study stayed the same or saw an increase.

The 10 most expensive metros for buying a home are:

1. San Jose (Salary needed: $254,835.73)
2. San Francisco (Salary needed: $198,978.01)
3. San Diego (Salary needed: $131,640.79)
4. Los Angeles (Salary needed: $123,156.01)
5. Boston (Salary needed: $106,789.93)
6. New York City (Salary needed: $105,684.33)
7. Seattle (Salary needed: $105,367.89)
8. Washington D.C. (Salary needed: $94,408.70)
9. Denver (Salary needed: $91,672.45)
10. Portland (Salary needed: $85,173.08)

The 10 least expensive metros for buying a home are:

1. Pittsburgh (Salary needed: $37,659.86)
2. Cleveland (Salary needed: $40,437.72)
3. Oklahoma City (Salary needed: $41,335.41)
4. Memphis (Salary needed: $41,400.93)
5. Indianapolis (Salary needed: $42,288.92)
6. Louisville (Salary needed: $42,323.15)
7. Cincinnati (Salary needed: $43,429.97)
8. St Louis (Salary needed: $44,215.56)
9. Birmingham (Salary needed: $44,593.35)
10. Buffalo (Salary needed: $45,698.05)

You can read the full study from HSH.com here.

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