A Redfin report claims that the minimum suggested yearly income to afford a median priced home in Detroit would be $26,690 ranking it first in affordable homes in the U.S. for the middle class. This is essentially less than half of the median household income which is at $56,339.
This number is way below the numbers shown by other states in the country. In the San Francisco area, for example, you need a yearly income of at least $265,000 to afford a home. Their median income is only at $92,714 while the median sales price for the homes in their area comes at $1.42 million. Detroit is followed by Rochester, NY ($30,289 annual income) and Tacoma, WA ($70,114) ranking 2nd and 3rd respectively.
“People who live in places like Detroit, Pittsburgh, and Cleveland tend to earn lower salaries than people in expensive coastal areas, but in many ways the midwesterners’ quality of life is better,” claims Redfin chief economist Daryl Fairweather.
This also shows that the majority of the prices for homes are still affordable in most cities where, “In 68 out of 88 most populous U.S. metros, a median priced home is affordable on a median household income,” according to the report.
To learn more, check out the full report: https://www.redfin.com/blog/median-home-price-to-income
“Even though they may make less money, it’s easier to purchase a home and build equity while providing for a family.”