PROVIDENCE – The salary needed to afford a median home price in the Providence metropolitan area was $66,899.42 in the third quarter of 2017, according to a study by HSH Associates, a mortgage research company. The Providence metro area was No. 15 in the study for highest salary needed in the nation.
The study also said that, “If homebuyers in the Providence metro put 10 percent down instead of 20 percent, the required salary increases from $66,899.42 to $76,332.40.”
Required salary for a home in the Providence metro increased 0.08 percent year over year.
The study assumed a 4.01 percent 30-year fixed mortgage rate, estimated the median home price and its monthly payment as well as the “salary needed” to make those payments.
The Providence metro area median home price was estimated to cost $287,000 in the study and the median monthly payment was said to be $1,560.99.
The national average salary necessary to pay off a median-priced home was $55,390.57. The national median home price was estimated to be $254,000.
Homebuyers in Boston were said to need the sixth-highest salary in the nation to afford a median-priced home at $97,465.24. San Jose ranked No. 1 in the study at $216,181.25.
Chris Bergenheim is the PBN web editor.
