The Real Deal New York

Got $40K? Here’s where you could buy a house

Homes in these 15 cities are affordable with a low five-figure salary
September 16, 2018 09:00AM

In Topeka, Kansas, the salary required with a 10 percent down payment is $31,515. (Credit: iStock)

If you follow the golden rule of real estate–location, location, location–home ownership can be done with a low-five figure income.

The National Association of Realtors’ second quarter survey of national data found that an annual paycheck of $40,000 (or less) was sufficient to qualify to buy a home in 15 cities, according to CNBC. NAR’s index depends on a mortgage rate of 4.7 percent and monthly payments capped at 25 percent of the buyer’s income.

The ranking comes as less Americans are buying homes while the cost is rising fastest at the lowest price-points. Last year, the median age of a homebuyer was 45–a 30-year high.

That said, a recent PropertyShark survey of respondents from Gen Z–roughly between the ages of 18 and 23 currently–found that the younger generation on the heels of millennials expects to buy a house within the next five years. Here’s where they could do it without breaking bank. [CNBC]Erin Hudson

1. Abilene, Texas

Abilene. (Credit: Flofor15/Wikimedia Commons)

Salary required with a 10 percent down payment: $37,827
Salary required with a 20 percent down payment: $33,624
Median home price: $167,200

2. Bloomington, Illinois
Salary required with a 10 percent down payment: $35,723
Salary required with a 20 percent down payment: $31,754
Median home price: $157,900

3. Buffalo, New York

Buffalo.

Salary required with a 10 percent down payment: $33,732
Salary required with a 20 percent down payment: $29,984
Median home price: $149,100

4. Cedar Rapids, Iowa
Salary required with a 10 percent down payment: $36,922
Salary required with a 20 percent down payment: $32,820
Median home price: $163,200

5. Charleston, West Virginia

Charleston, West Virginia. (Credit: Tim Kiser)

Salary required with a 10 percent down payment: $32,035
Salary required with a 20 percent down payment: $28,476
Median home price: $141,600

6. Cleveland, Ohio
Salary required with a 10 percent down payment: $34,660
Salary required with a 20 percent down payment: $30,809
Median home price: $153,200

7. El Paso, Texas

Juarez, Mexico and El Paso, Texas.

Salary required with a 10 percent down payment: $35,271
Salary required with a 20 percent down payment: $31,352
Median home price: $155,900

8. Erie, Pennsylvania
Salary required with a 10 percent down payment: $27,533
Salary required with a 20 percent down payment: $24,474
Median home price: $121,700

9. Fort Wayne, Indiana

Fort Wayne. (Credit: Momoneymoproblemz)

Salary required with a 10 percent down payment: $32,805
Salary required with a 20 percent down payment: $29,160
Median home price: $145,000

10. Lexington, Kentucky
Salary required with a 10 percent down payment: $39,524
Salary required with a 20 percent down payment: $35,132
Median home price: $174,700

11. Montgomery, Alabama

Montgomery. (Credit: Max Pixel)

Salary required with a 10 percent down payment: $32,963
Salary required with a 20 percent down payment: $29,300
Median home price: $145,700

12. Oklahoma City, Oklahoma
Salary required with a 10 percent down payment: $37,216
Salary required with a 20 percent down payment: $33,081
Median home price: $164,500

13. Rochester, New York

Rochester. (Credit: Theresa Marconi)

Salary required with a 10 percent down payment: $34,366
Salary required with a 20 percent down payment: $30,547
Median home price: $151,900

14. Springfield, Illinois
Salary required with a 10 percent down payment: $31,266
Salary required with a 20 percent down payment: $27,792
Median home price: $138,200

15. Topeka, Kansas
Salary required with a 10 percent down payment: $31,515
Salary required with a 20 percent down payment: $28,013
Median home price: $139,300