Company Calculates How Much Money You Need to Make to Buy a Home in Phoenix

Categories: News
Ms. Phoenix via Flickr

Good news: By one measure, you need to make only about $33,000 a year to buy an average home in Phoenix.

Bad news: In reality, you're probably going to need a lot more than that.

See also:
-ASU Research: Millennials Not Buying Houses in Phoenix Area

HSH, a company that does mortgage research, tried to figure out what kind of salary you'd need to buy a house at the median home price in some of America's largest cities.

In Cleveland, they figure you'll need to make less than $20,000 to buy an average home. In San Francisco, you'd need more than $115,000 a year.

Phoenix was around the middle, with the company suggesting you need an annual salary of $32,811.94 to afford a median-priced home, at $192,700.

Now, for the caveats.

First, this is after-tax income. Assuming you're single, don't have any dependents, and no exemptions, that means your salary would actually have to be around $42,000 a year, before taxes.

Second, this measure assumes you make a down payment of 20 percent on this home (because people making $42,000 a year usually have more than $38,000 in cash, right?).

And then there's the last caveat from HSH:
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, insurance, 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.
So if you make about $33,000 after taxes, you might be able to buy an average house in Phoenix.

As of a couple years ago, the median household income in Phoenix (pre-tax) was about $44,000. The home ownership rate in Phoenix from 2008 to 2012 was a little shy of 57 percent, so it certainly seems reasonable that a home can be purchased with about $33,000 in take-home pay.

Click here to check out the information on all the 25 cities HSH evaluated.

Got a tip? Send it to: Matthew Hendley.

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Follow Matthew Hendley at @MatthewHendley.

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Francisco Cortez
Francisco Cortez

As the Rich get richer, the middle class is disappearing. We need to clean house and get rid of all the Republicans in the House. If they don't like Government, then why in the hell are they working for it?

Susanne Jimenez
Susanne Jimenez

Hey!! That place doesn't look like that anymore!! And all of the kitties that lived there are gone too!

Zachariah Ortiz
Zachariah Ortiz

Oh my god. That house is still standing? I moved almost a year ago and I remember when they starting "renovating" it.

Larry Samaniego
Larry Samaniego

Its fucken stupid theyre sayingyou have to make an average of 53000 a year to be able to purchase a home that is 80000 or more a lot of people arent even close an average job makes you anywhere from 25000-35000 so they can suck a donkeys dick

eric.nelson745 topcommenter

The minimum income required to purchase a median-priced home in San Diego is about $81,000 annually. Of course, all those extra costs mean that you need lots more than 81k. Still and all, it costs more than twice over there than it does here. That is the price of living in America's Finest City. Oh, and everything else is much steeper in price. For beginners, a gallon of unleaded gas costs about 50 cents more than in the PHX. I sure do wish I had that kind of cash. Ever since I moved here from SD in 2005, I've been longing to go back. I don't think that's going to happen anytime soon unless I hit the Powerball. Sigh.

jonnyquest topcommenter

I can understand the yearning if you are from SD. It's a beautiful area. I was born and raised here in AZ and for all it's shortcomings, it's home. I do love the smell of the desert after a rain, the sound of quail calling early in the morning, coyotes at night. Arpaio and all the other "stuff" are just distractions from what really matters. This is home. This is where I belong. Plant yourself Eric. Plant yourself.

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