10 Cities Where You Can Own A Home For About $1,000 A Month

While housing affordability continues to be a concern across the country, there are some metropolitan areas where homes are a relative bargain. Pittsburgh, for example, is the nation’s most affordable metro area to buy a home, according to a recent analysis by mortgage data provider HSH.com.

Using the latest quarterly home-price information from the National Association of Realtors, HSH.com crunched the numbers to find the 10 metro areas where a home costs about $1,000 a month. It incorporated local property tax and homeowner’s insurance costs to calculate the income needed to qualify for a median-priced home. The median price is the figure in the middle of a data set in which half of the houses are priced for less and half are priced for more.

“Fixed-rate mortgage rates have dropped 0.6 percentage points since November 2018 and today are lower than they were a year ago,” said Frank Nothaft, chief economist for CoreLogic, a real estate data provider. “With interest rates at this level, we expect a solid home-buying season this spring.”

Before you start mortgage shopping, keep in mind that you don’t have to put 20% down. But with a smaller down payment, many lenders require private mortgage insurance on conventional loans, which would increase the required salary recommendation. Everyone’s situation is different, which is why it’s important to talk to multiple lenders who can help you understand your options and the trade-offs.

Here are 10 metropolitan areas where you can own a home for about $1,000 a month with a 20% down payment and a 30-year fixed-rate mortgage at 4.9%.

1. Pittsburgh. In the Pittsburgh area, you would need to earn at least $37,659 to afford the median-priced home at $141,625, making it the most affordable metro area in the country. The monthly mortgage payment would be $878.73. If you put 10% down, the required salary increases to $42,611. Younger households are raising the homeownership rate in Pittsburgh, according to new CoreLogic data. As Millennials switch from renting to owning, they make up the largest share of mortgage applicants, 57%, in Pittsburgh’s metro area.

2. Cleveland. If you’re looking to buy a home in the Cleveland area, you would need a salary of at least $40,437 to afford the median-priced home at $150,100. The monthly mortgage payment would be $943.55. If buyers put 10% down, the required salary increases to $45,685.

3. Oklahoma City. Prospective home buyers in Oklahoma’s capital and surrounding cities would need a salary of at least $41,335 to qualify for homes with a median price of $161,000. The monthly mortgage payment would be $964. With 10% down, buyers would need an annual income of $46,964.

4. Memphis. House hunters in the Memphis metro area would need to earn at least $41,400 to afford homes with a median price of $174,000. The monthly mortgage payment would be $966. If buyers put 10% down, the required annual salary increases to $47,484.

5. Indianapolis. Residents in the Indianapolis area would need to earn at least $42,289 to afford homes with a median price of $185,200 and a monthly mortgage payment of $986.74. With a 10% down payment, the income requirement increases to $48,763.

6. Louisville, Kentucky. In the Louisville metropolitan area, prospective buyers would need to earn at least $42,323 to purchase a home with a median price of $180,100 and a monthly payment of $987.54. If you put 10% down, you would need an annual income of $48,619.40.

7. Cincinnati. The annual salary needed to buy a home in the Cincinnati area is $43,430. That’s with a 20 percent down payment on a median-priced home of $169,400 and a monthly payment of $1,013.37. If your down payment is 10%, the required salary increases to $49,352.

8. St. Louis. If you plan to buy a house in the St. Louis metro area, you need to earn at least $44,215 for a median-priced home of $174,100 and a monthly payment of $1,031.70. With a 10% down payment, buyers would need an annual income of $50,302.

9. Birmingham, Alabama. There are plenty of opportunities to buy a median-priced home of $202,300 in the Birmingham area if your annual salary is at least $44,593. Your monthly mortgage payment would be $1,040.51. Buyers who put 10% down will need an annual income of at least $51,666.

10. Buffalo, New York. Prospective home buyers in the Buffalo, New York metro area need to earn at least $45,698 to purchase a median-priced home of $154,200 with a $1,066 mortgage payment. The salary requirement rises to $51,089 if buyers put 10% down. CoreLogic data shows Millennials make up the highest share, 55%, of mortgage applicants in Buffalo. 

This post first appeared on Forbes.com. To see the original, click here.