Prospective homeowners in the five most expensive towns in the United States need to earn at least $1 million annually to afford to buy property, according to a recent report released by GOBankingRates.
The analysis looked at the 50 wealthiest towns in the US and determined the minimum salary needed to own a home in each town, assuming that buyers were spending no more than the recommended 30% of their salaries on housing.
This report comes following a year in which many Americans continued to face obstacles in buying homes. In June 2024, the median sale price for existing properties hit an all-time high. At the same time, the average age of American homebuyers rose by six years — to a historic high of 56, according to the National Association of Realtors’ (NAR) 2024 Profile of Homebuyers and Sellers.
“First-time buyers face high home prices, high mortgage interest rates and limited inventory, making them a decade older with significantly higher incomes than previous generations of buyers,” Jessica Lautz, NAR deputy chief economist and vice president of research, said in a statement.
Some experts anticipate that the housing market will remain skewed toward sellers in 2025, though many questions remain – particularly with the changing economic policies of a new presidential administration.
“Mortgage rates won’t fall enough [in 2025] to spur an increase in existing-home inventory, with most of the increase in inventory seen in the market coming from new construction,” said Greg McBride, CFA, Bankrate’s chief financial analyst, in a statement.
“Most areas will still lean toward a seller’s market due to limited inventory. However, those markets that have seen a surge in inventory will definitely be more of a buyer’s market and will be susceptible to price declines.”
Continue reading to see how much it costs to buy a home in the five most expensive markets in the United States.
