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Housing affordability survey
A new survey shows about half of American homeowners and renters are struggling to afford housing.
NEW YORK - The salary needed to afford a home in the NYC area is pretty steep, as you might expect – begging the question: how much money do you need to afford a home in the United States?
According to consumer financial services company Bankrate, Americans need an annual income of $110,871 – nearly a 50% increase in just the last four years – to afford a median-priced home of $402,343. Four years ago, only the District of Columbia and six states, including New York and New Jersey, required a six-figure salary to afford a typical home.
"A combination of high mortgage rates, rising home prices and low housing inventory over the last two years is pushing homeownership further out of reach for would-be homeowners, especially first-timers," according to Bankrate,
The website came up with how much desired homeowners need to earn annually to afford a median-priced home in all 50 states – including NY, NJ and CT – compared to four years ago. Here's the full data:
Annual income needed to afford median-priced home (Jan. 2024)
- Connecticut: $119,614
- New Jersey: $152,186
- New York: $148,286
Annual income needed to afford median-priced home (Jan. 2020)
- Connecticut: $86,951
- New Jersey: $104,986
- New York: $111,596
NJ home sells for 40% over asking price as housing costs skyrocket in state
A house in New Jersey sold for $242K over the asking price, NJ.com reported.
4-year percentage change, annual income needed to afford median-priced home
- Connecticut: 37.6%
- New Jersey: 45.0%
- New York: 32.9%
Monthly mortgage payment (Jan. 2024)
- Connecticut: $2,791
- New Jersey: $3,551
- New York: $3,460
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Manhattan zip codes declining in home value
New data shows as more people move out, home prices in New York aren't rising as quickly as they are everywhere else. But it doesn't mean anything in the scheme of things. FOX 5 NY’s Christal Young has the story.
Median home sale price (Jan. 2024)
- Connecticut: $377,600
- New Jersey: $495,600
- New York: $521,800
Out of all 50 states and the District of Columbia, California requires the highest annual salary to afford a typical home at $197,057, followed by Hawaii ($185,829), District of Columbia ($167,871), Massachusetts ($162,471) and Washington ($156,814).
"Affordability is the biggest issue — finding a home that’s in your budget," Bankrate housing market analyst Jeff Ostrowski said. "The higher the price of a home, the harder it is to come up with the down payment or to qualify for the monthly payment. Home values are near record highs, and if you want a house, you have little choice but to pay a high price."
To find out how Bankrate calculated the study, click HERE.
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NYC apartment shortage
New York City lags far behind other large cities when it comes to housing inventory. There is not enough supply to meet the demand.
Meanwhile, Zillow says the average U.S. home value is $347,716, up 3.6% over the past year. In NJ, the average value is $503,432, up 9% over the past year. In NY, it's $732,594, down 2.5% over the past year, and in CT, it's $384,244, up 11.1% over the past year.
In addition, a recent survey by real estate company Redfin found half of homeowners and renters struggle to afford their housing payments.
How much money you need to 'live comfortably' in NYC
Living in NYC comes at a price – and it sure isn't cheap.
In a new study, researchers at SmartAsset analyzed data to determine the income required to "live comfortably" in the nation's 99 largest metropolitan areas.
A jogger runs along the Brooklyn Bridge Park, February 8, 2017 in the Brooklyn borough of New York City. (Photo by Drew Angerer/Getty Images)
The research revealed that it takes the most money to live comfortably as a single person in New York City, requiring $66.62 in hourly wages, or an annual salary of $138,570. That's more than $63,000 needed to sustain comfort in Houston, Texas, the lowest-ranking city on the list.
New York's also one of six U.S. cities where a family must make over $300k to raise two kids comfortably: $318,406, to be exact.