A median priced home in San Jose California is out of reach even if you make more than $125,000.
How would you like to make $125,000 a year — and still not be able to make the median mortgage payment?
That’s the case in California’s most expensive real estate city, San Jose. The median income there is $124,300, but the median housing cost is $1.25 million, according to Zillow. So, with 20 percent down to avoid mortgage insurance costs, it would cost you $4,900 monthly, which would be more than 30 percent of your income.
It’s not as bad in San Francisco, with its $107,600 median annual salary and home values at just under a million dollars. There, your payment after a 20 percent down would be $3,760 — also more than 30 percent.
Need to put more than half down
To bring the monthly payments to under 30 percent of income in San Jose would require you put more than half down, or $614,100. Imagine what you could get for $614,100 cash in Las Vegas?
It’s better in the L.A. area, where a median home cost $652,300 with a median household income of $73,600.
Nationwide, a median home cost $225,300 and within the scope even of renters at the median income. The median price for resale homes in Las Vegas is just about $300,000.