
Saving up for the down payment is only part of the hurdle to homeownership for homeowners.
Unison's 2019 Home Affordability Report found that since mortgage interest rates rose from 3.99 % to 4.54%, monthly mortgage payments across major US cities have increased twice as much as incomes.
The report broke down how much homeowners need to make in 35 US cities in order to afford the city's median monthly mortgage payments. From that list, we looked at the 17 US cities where homeowners have to make the highest salary to afford a mortgage.The report's findings are based on homebuyers who spend 30% or less of their gross income on monthly payments. The report assumes a 20% down payment, and a 4.54% mortgage interest rate on 2018 data and a 3.99% mortgage interest rate on 2017 data, the average annual Freddie Mac 30-year fixed rates. Data on median household incomes and median value of owner-occupied housing units were provided to Unison by S&P Global.
Keep reading to see the top 17 US cities where homeowners have to make the highest salary to afford the median mortgage.
17: Las Vegas, Nevada
In Las Vegas, in order to afford the city's median monthly mortgage payment of $1,150, homeowners must earn a minimum annual income of $45,998.
16: Minneapolis, Minnesota
In Minneapolis, in order to afford the city's median monthly mortgage payment of $1,228, homeowners must earn a minimum annual income of $49,122.
The average price of a home in Minneapolis is $250,779.
15. Chicago, Illinois
In Chicago, in order to afford the city's median monthly mortgage payment of $1,276, homeowners must earn a minimum annual income of $51,031.
The average price of a home in Chicago is $260,526.
14. Atlanta, Georgia
In Atlanta, in order to afford the city's median monthly mortgage payment of $1,357, homeowners must earn a minimum annual income of $54,266.
The average price of a home in Atlanta is $277,041.
13. Salt Lake City, Utah
In Salt Lake City, in order to afford the city's median monthly mortgage payment of $1,431, homeowners must earn a minimum annual income of $57,248.
The average price of a home in Salt Lake City is $292,263.
12. Miami, Florida
In Miami, in order to afford the city's median monthly mortgage payment of $1,541, homeowners must earn a minimum annual income of $61,634.
The average price of a home in Miami is $314,657.
11. Denver, Colorado
In Denver, in order to afford the city's median monthly mortgage payment of $1,725, homeowners must earn a minimum annual income of $68,983.
The average price of a home in Denver is $352,172.
10. Portland, Oregon
In Portland, in order to afford the city's median monthly mortgage payment of $1,853, homeowners must earn a minimum annual income of $74,137.
The average price of a home in Portland is $378,483.
9. Boston, Massachusetts
In Boston, in order to afford the city's median monthly mortgage payment of $2,384, homeowners must earn a minimum annual income of $95,344.
The average price of a home in Boston is $486,752.
8. New York City, New York
In New York City, in order to afford the city's median monthly mortgage payment of $2,733, homeowners must earn a minimum annual income of $109,313.
The average price of a home in New York City is $558,065.
7. Washington, D.C.
In Washington, D.C., in order to afford the city's median monthly mortgage payment of $2,803, homeowners must earn a minimum annual income of $112,106.
The average price of a home in Washington, D.C. is $572,324.
6. Seattle, Washington
In Seattle, in order to afford the city's median monthly mortgage payment of $2,855, homeowners must earn a minimum annual income of $114,217.
The average price of a home in Seattle is $583,100.
5. San Diego, California
In San Diego, in order to afford the city's median monthly mortgage payment of $2,916, homeowners must earn a minimum annual income of $116,652.
The average price of a home in San Diego is $595,533.
4. Los Angeles, California
In Los Angeles, in order to afford the city's median monthly mortgage payment of $3,048, homeowners must earn a minimum annual income of $121,939.
The average price of a home in Los Angeles is $622,523.
3. Urban Honolulu, Hawaii
In Urban Honolulu, in order to afford the city's median monthly mortgage payment of $3,514, homeowners must earn a minimum annual income of $140,555.
The average price of a home in Urban Honolulu is $717,564.
2. San Jose, California
In San Jose, in order to afford the city's median monthly mortgage payment of $3,817, homeowners must earn a minimum annual income of $152,697.
The average price of a home in San Jose is $779,549.
1. San Francisco, California
In San Francisco, in order to afford the city's median monthly mortgage payment of $5,052, homeowners must earn a minimum annual income of $202,094.
The average price of a home in San Francisco is $1,032,732.