10 cities where you can buy a home on an annual salary of $60K or less

Texas cities dominate new ranking of affordable “boomtowns”

Jan.January 05, 2019 12:00 PM

(Credit: iStock)

Want to buy an affordable home in a flourishing city? It might be a pipedream in New York City or Los Angeles, but elsewhere in the country it’s possible to buy a home on an annual salary of $60,000 or less in one of America’s new “boomtowns.”

Personal finance site MagnifyMoney crunched numbers to find “boomtowns,” areas with the fastest growing local industries, populations, and work opportunities in the country.

CNBC’s Make It then compared those thriving areas to the National Association of Realtors’ Metropolitan Median Area Prices and Affordability and Housing Affordability index from the third quarter of 2018, to find the country’s ten most affordable, prospering cities. (The index assumes a blanket 4.7 percent mortgage rate across all areas, and a monthly principal and interest payment limited to 25 percent of a resident’s income. It does not account for local insurance or property taxes.)

Four of the top ten cities were in Texas. The most affordable city on the list was El Paso, where the median home price was $158,200, where buyers can afford a home with an annual salary of $32,185, with a 20 percent down payment. An annual salary of $36,208 is required for a 10 percent down payment.

The most expensive city in the rankings was still within reach for those earning under $60,000 annually. In Dallas, $59,988 a year qualifies buyers for a 10 percent down payment on a median house price of $262,100. For those able to lay down 20 percent upfront, the required salary is $53,322.

Other affordable boomtowns that made the list included Charlotte, North Carolina; Des Moines, Iowa; Fort Myers, Florida; Grand Rapids, Michigan; New Orleans, Louisiana; and Oklahoma City, Oklahoma. [CNBC] — Decca Muldowney

Related Articles

From left: 55 East 74th Street, 9 East 82nd Street, 1 Central Park South, 78 Irving Place with Adam Neumann and 111 West 57th Street (Credit: StreetEasy, Wikipedia, Getty Images)

Adam Neumann’s triplex, Russians’ Plaza pad were priciest homes listed last week

3 East 69th Street and 252 East 57th Street 

With asking prices in freefall, luxury market sees strong week

Keller Williams CEO Gary Keller

Keller Williams will cut off agents who leave

Wall Street bonus season is the stuff home sellers’ dreams, as they picture eager buyers armed with hefty bonus checks and willing to pay top price. But in a buyer’s market that vision may be more like a mirage (Credit: iStock)

Here’s what Wall Street bonus season means for real estate this year

Adam Neumann and 78 Irving Place (Credit: Getty Images and StreetEasy)

Adam Neumann is asking $37M for Gramercy Park triplex

(Credit: iStock)

Residential rents continue upward march in Manhattan, Brooklyn and Queens

Redfin's Glenn Kelman (Credit: iStock)

“It’s on like Donkey Kong”: Redfin scrambling to keep up with iBuyer demand

Don Lemon and Tim Malone with their apartment at 2280 Frederick Douglass Boulevard 

CNN’s Don Lemon lists Harlem condo with fiancé broker Tim Malone