Annual salary needed to buy a house in Texas
Published 3:37 pm, Tuesday, August 23, 2016
Mortgage site HSH released its list of how much money would-be home buyers need to earn to be able to afford a home in 27 U.S. metro areas.
Dallas, Houston and San Antonio were among the cities evaluated.
The site found that, to buy a median-priced home at $217,400, Houstonians have to earn at least $52,275 per year. That's up from 2015, when a previous report put the salary figure at $49,983 and the median house price at $199,300. That's a mortgage payment of $1,219 per month. These findings come on the heels of a 2016 second-quarter home price decline in Houston. (Story continues below.)
"The Houston metro moved down one spot on our list, swapping places with the Philadelphia metro. Home prices in the Houston area did not increase nearly as much as many other metros on our list, allowing the required salary to increase by only $883 in the second quarter," HSH reported. "If buyers in the Houston metro put 10 percent down instead of 20 percent, the required salary increases to $59,664."
In San Antonio, prospective home owners need to make at least $48,752 annually to buy a median-priced home at $210,500. With a 30-year, fixed-rate mortgage at 3.71 percent, that would amount to $1,137 per month.
"Given that the salary increase in the first quarter was only $18 in the San Antonio metro, the second-quarter increase of $1,760 may seem rather significant," the report states. "If buyers put 10 percent down instead of 20 percent, the required salary figure increases by another $7,135 to $55,888."
In Dallas, $54,764 is the minimum salary to buy a median-priced $232,200 home.
When calculating required salaries, HSH took into account the principal, interest, taxes and insurance payments for the needed mortgage.