Detroit among U.S. cities where you can buy a home if you make less than $100K
(CBS DETROIT) — If high prices are keeping you from buying a home, don't give up yet.
Realtor.com identified 14 cities in the U.S. where people can buy a home if they make less than $100,000 a year.
"Homeownership is possible if you don't earn six figures," says Realtor.com Chief Economist Danielle Hale. "In these areas, prices are low enough that, even with high mortgage rates, prices aren't out of reach."
The Realtor.com economics team used the median home list prices in the 50 largest metropolitan areas to determine the required income to purchase a home, assuming a 20% down payment and a mortgage rate of 6.99%, along with local taxes and insurance rates.
The team also made sure that people wouldn't be spending more than 30% of their income on buying a home.
Pittsburgh ranked at No. 1, with a median list price of $250,000 and the median household income required to purchase a home being $67,000.
Detroit followed at No. 2, also with a median home list price of $250,000 and the median household income required to purchase the home being $67,000.
Here are the other cities on the list where those who make less than $100,00 can purchase a home:
- Cleveland, OH
Median home list price: $255,000
Median household income required to purchase a home: $71,000 - Birmingham, AL
Median home list price: $297,000
Median household income required to purchase a home: $75,000 - Buffalo, NY
Median home list price: $285,000
Median household income required to purchase a home: $79,000 - St. Louis, MO
Median home list price: $294,000
Median household income required to purchase a home: $82,000 - Rochester, NY
Median home list price: $295,000
Median household income required to purchase a home: $87,000 - Louisville, KY
Median home list price: $327,000
Median household income required to purchase a home: $87,000 - Indianapolis, IN
Median home list price: $340,000
Median household income required to purchase a home: $87,000 - New Orleans, LA
Median home list price: $335,000
Median household income required to purchase a home: $90,000 - Memphis, TN
Median home list price: $339,000
Median household income required to purchase a home: $91,000 - Baltimore, MD
Median home list price: $352,000
Median household income required to purchase a home: $91,000 - Oklahoma City, OK
Median home list price: $330,000
Median household income required to purchase a home: $98,000 - Cincinnati, OH
Median home list price: $375,000
Median household income required to purchase a home: $99,000