Where Homes are Affordable

Source for statistics:    CNNMoney Article

1. Spring, TX

Median home price: $98,214
Median family income: $72,742

2. North Port, FL

Median home price: $86,000
Median family income: $58,180

3. Missouri City, TX

Median home price: $145,690
Median family income: $89,242

4. Cedar Rapids, IA

Median home price: $113,000
Median family income: $67,778

5. Bellevue, NE

Median home price: $124,000
Median family income: $73,998

My 2-cents worth of commentary ------ In Europe, it is common for homebuyers to qualify for a mortgage amount 3x their salary. The loan is a result of a required 20% down.

Do you want to live in New York City, Washington DC, Boston, or San Francisco?

Multiple your salary by three (3). This will equal the highest price of home you can afford to buy if you lived in Europe.

As an example, the 2012 median household income in Boston = $52,000

By using the European model, a family could afford a home priced at $156,000.

The family would also have to have $31,200 cash for a down payment.

However, in Boston, the median asking price as of October 2012 = $330,000!!

The definition of a qualified mortgage is coming in 2013. Be diligent home buyers and home owners!!! It will be more difficult to BUY and to SELL a home after 2013.

 

This map shows the median income for each state. If the housing policies use the European model, our housing industry will be upside down and changed inside out!