Summary:
You need to earn over $200,000 a year to afford a median-priced home in New York City.
This figure doesn't include the hefty 20% down payment, which is about $210,000 for a median-priced home.
Even with a high income, your monthly mortgage payments must be limited to 30% of your gross income to be considered affordable.
Manhattan residents face an even higher income threshold, requiring at least $308,449 to afford a home.
Only 15% of households in NYC earn over $211,000 annually, making homeownership out of reach for most residents.
The Price Tag of NYC Homeownership: A Reality Check
Dreaming of owning a home in New York City? Brace yourself. A recent StreetEasy report reveals the stark reality: you need to earn over $200,000 a year to afford a median-priced home. And that's before you even consider the hefty down payment.
While mortgage rates have declined slightly, the median asking price for a home in NYC is now $1.05 million, three times the national average. This means you'll need $210,000 in cash just for the down payment.
Even with a salary over $200,000, your monthly mortgage payments will still need to be capped at 30 percent of your gross income to be considered affordable. For Manhattan residents, the minimum income required to afford a home is even higher, at $308,449.
The report highlights a stark reality: homeownership in NYC is increasingly out of reach for many. Only 15 percent of households in the city earn over $211,000 annually, meaning the majority of residents are priced out of the market. Even to afford the cheapest homes, you'll need to earn at least $94,861, which is more than the average dental hygienist or teacher makes.
So, if you're dreaming of owning a home in New York City, be prepared for a long and challenging journey. You might want to reconsider that $8 matcha latte and start saving for that down payment instead.
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