"My trusty spreadsheet found that under this homebuyer's ultimate dream scenario, the median wage requirement met rough qualification standards in just 12 states: West Virginia, Iowa, Ohio, Oklahoma, Michigan, Louisiana, Kansas, Kentucky, Illinois, Indiana, Mississippi and North Dakota. That's how crazy high home prices have become. Consider my house-financing assumptions for buyers: The median-priced home (using average values from Zillow and Redfin) and the median statewide income, according to federal pay data."
"Not so Golden State California's $821,000 median-priced home gets a typical buyer a $2,919 monthly payment with a 0% mortgage. Don't forget the $164,000 down payment. Remember, you still need to repay the loan's principal. California's payment is the second-highest among the states. Worse, 12 months of those payments equal 79% of the $44,600-a-year median wage nowhere near the 30% threshold."
Homeownership is extremely unaffordable across most U.S. states. A hypothetical 0% 30-year mortgage still permits only 12 states where median wages meet a 30% monthly-payment qualification. Calculations use median-priced homes (Zillow and Redfin averages), median statewide income (federal pay data), 80% financing, and annual property tax plus insurance estimated at 1.6% of home value. California's $821,000 median home produces a $2,919 monthly payment with a 0% mortgage and requires a $164,000 down payment; those payments equal 79% of the $44,600 median wage. Median wages in 37 other states also fail the 30% standard.
Read at www.ocregister.com
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