Though many U.S. cities are plagued by high housing prices and relatively stagnant wages, others are flourishing: jobs are plentiful, salaries are rising and business is booming.
To determine which thriving cities are also affordable housing markets, CNBC Make It looked at personal finance site MagnifyMoney’s list of America’s biggest “boomtowns” to see which U.S. cities offer job opportunities, prosperous businesses and an abundance of places to live.
We then compared that list to the National Association of Realtors’ Metropolitan Median Area Prices and Affordability and Housing Affordability index from the third quarter of 2018. The index assumes a 4.7 percent mortgage rate for all areas and a monthly principal and interest payment limited to 25 percent of a resident’s income. Note that this does not include homeowner’s insurance and property taxes, which vary from market to market.
From there, CNBC Make It identified 10 “boomtown” cities where the qualifying income to purchase a home with a 10 or 20 percent down payment is an annual salary of $60,000 or less.
They are:
Salary required with a 10 percent down payment: $56,074
Salary required with a 20 percent down payment: $49,844
Median home price: $245,000
Salary required with a 10 percent down payment: $59,988
Salary required with a 20 percent down payment: $53,322
Median home price: $262,100
Salary required with a 10 percent down payment: $47,651
Salary required with a 20 percent down payment: $42,357
Median home price: $208,200
Salary required with a 10 percent down payment: $36,208
Salary required with a 20 percent down payment: $32,185
Median home price: $158,200
Salary required with a 10 percent down payment: $57,218
Salary required with a 20 percent down payment: $50,861
Median home price: $250,000
Salary required with a 10 percent down payment: $45,660
Salary required with a 20 percent down payment: $40,587
Median home price: $199,500
Salary required with a 10 percent down payment: $54,975
Salary required with a 20 percent down payment: $48,867
Median home price: $240,000
Salary required with a 10 percent down payment: $49,437
Salary required with a 20 percent down payment: $43,944
Median home price: $216,000
Salary required with a 10 percent down payment: $37,695
Salary required with a 20 percent down payment: $33,507
Median home price: $164,700
Salary required with a 10 percent down payment: $53,053
Salary required with a 20 percent down payment: $47,158
Median home price: $231,800
Like this story? Subscribe to CNBC Make It on YouTube!
Don’t miss: Suze Orman: The No. 1 sign you can’t actually afford to buy a home
