It’s no secret that renters across the country are struggling to pay rent, but what about those looking to purchase a home? For many, purchasing a home may be a better option than renting as the monthly mortgage check builds equity instead of lining a landlord’s pocket. However, a new study from HSH Associates shows that Chicagoans will have to earn over $60,000 per year to be able to afford a mortgage.
While the $61,290.77 figure is certainly higher than the salary needed to afford other cities, it’s a strong contrast from the $75,000 reportedly needed to pay rent and not be rent burdened (tenants that spend more than 30% of their earnings on rent).
And compared to other major metros, Chicago is much more affordable. Cities like Miami, San Diego, Los Angeles, San Francisco, Seattle, and New York will require much higher earnings to buy a house and pay the mortgage. This trend is perhaps why Chicago is considered to be more accessible for Millennium home buyers.
Here’s a more detailed look at how Chicago compares to other major cities across the country:
- The salary you must earn to buy a home in 27 metros [HSH]
- Report: Chicago Households Need to Earn $75K to Pay Rent [Curbed Chicago]
- Study: Chicago More Accessible for Millennial Homebuyers [Curbed Chicago]