Report: 6-figure salary needed to afford home in Providence and Warwick

A SALARY of $144,018 per year is needed to afford a median-priced home of $453,000 in the metropolitan area that includes Providence, according to a study by HSH.com. ROGELIO V. SOLIS / ASSOCIATED PRESS FILE PHOTO

PROVIDENCE – A six-figure salary is needed to afford a home in the city and Warwick, according to a study by HSH.com.

The mortgage resource website found that a $144,018 per-year salary was needed to afford a median-priced home of $453,000 in the two cities. With 20% down, monthly payment on a 5.81%, 30-year fixed mortgage rate would be $2,222, including insurance and taxes.

The study used the National Association of Realtors’ 2022 third-quarter data for median home prices, national mortgage rate data derived from weekly surveys by Freddie Mac and the Mortgage Bankers Association of America for 30-year fixed rate mortgages and available property tax and homeowners insurance costs to determine the annual salary it takes to afford the base cost of owning a home [principal, interest, property tax and homeowner’s insurance] in the nation’s 50 largest metropolitan areas.

Data showed the national average salary needed to afford a home is $95,716 with a median-home price of $398,500. Monthly payment on a 30-year fixed mortgage at 5.82% would be $2,233, including insurance and taxes.

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The highest salary needed to afford a home was in San Jose, Calif., according to the study. Data showed a $359,000 yearly salary was needed to purchase a median-priced home of $1.69 million. With a 20% down payment, the monthly payment on a 5.49%, 30-year fixed mortgage, including insurance and taxes, would be $8,379.

Pittsburgh required the lowest salary of the 50 metro areas studied. A $55,006 salary was needed to afford a median-priced home of $210,250. Monthly payment on a 30-year mortgage at 5.82% would be $1,283.48, including insurance and taxes.

Boston was the most expensive New England city. A $167,304 salary was needed to purchase a median-priced home of $698,900. Monthly payment on a 30-year mortgage at 5.82% would be $3,903, including insurance and taxes.

According to the study, Hartford, Conn., required at $95,236.25 yearly salary to purchase a median-priced home of $344,100. Monthly payment on a 30-year mortgage at 5.82% would be $2,222.47, including insurance and taxes.

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