Market Data 
You’ll need to earn just over six figures to buy a typical home in the U.S. right now. If you want to live in the West, it will require $161,571 — making it the most expensive region in the country.
In some California cities, the cost is even more stark. Residents need to make over $200,000 to afford a typical single detached home, a recent National Association of Realtors report reveals.
You would need to make $468,252 to afford a house in the San Jose area, the highest of all 221 U.S. metro markets surveyed, according to NAR’s quarterly report.
San Jose is by far the most priciest place to buy a home, even among 10 other metro areas where qualifying income exceeds $200,000. Here’s a look at the most expensive markets.
- San Jose-Sunnyvale-Santa Clara, California: $468,252
- Anaheim-Santa Ana-Irvine, California: $347,651
- San Francisco-Oakland-Hayward, California: $334,676
- Honolulu, Hawaii: $286,093
- Salinas, California: $265,895
- San Diego-Carlsbad, California: $249,228
- Oxnard-Thousand Oaks-Ventura, California: $245,269
- San Luis Obispo-Paso Robles, California: $244,011
- Los Angeles-Long Beach-Glendale, California: $236,601
- Boulder, Colorado: $227,237
- Naples-Immokalee-Marco Island, Florida: $201,983
California has a longstanding housing shortage: Demand there far exceeds the annual rate of home construction in that state.
A mix of increased desire for homes in California and low interest rates early in the pandemic has driven up prices by 40% in the last four years, according to the most recent Federal Housing Finance Agency data available.
Some of the wealthiest people in the U.S. live in cities like San Jose, San Francisco and Anaheim. The exclusive enclave of Atherton has been the most expensive ZIP code in the country for years now, according to a RealtyHop study.
In contrast to California’s most expensive markets, the qualifying income needed to buy a typical home in the U.S. overall is $103,835. It’s even cheaper in the Midwest and the South, where the qualifying income is $74,967 and $95,511, respectively.
NAR’s calculated qualifying income in each metro market based on median sale prices, a 20% down payment and a 7.37% interest rate. The monthly principal and interest payment are limited to 25% of a household’s income.
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