New information from Property Club reveals that it would take 13 years to save for a full house payment if the consumer saved 30% of their average income in the 50 most populous cities in the U.S., based on the most recent wage data from 2017.
San Francisco, California, had the longest wait time in America, as it would 81 years to save for the median-priced single family home—clocking in at $1.4 million. The report found that buyers would need to earn $308,763 annually to keep mortgages from taking more than 30% of yearly income.
Several California markets are catching up to California, with buyers needing to save up for 63 years to afford housing in San Jose and 43 years in Los Angeles.
Other metros that have long waits include Washington D.C. at 42 years; Long Beach, California at 39 years; Oakland, California, at 46 years; and Honolulu, Hawaii, at 65 years.
On the more affordable side, it would take four years to save for a full house payment in Memphis, Tennessee, and just three years in Cleveland, Ohio.
Rising home prices show no signs of stopping, as CoreLogic’s Home Price Index (HPI) revealed that prices rose 3.6% annually in August and are expected to increase 5.8% over the next year.
August’s HPI gain was down, though, from August 2018’s gain of 5.5% and was a slight increase of the prior month’s increase of 3.3%. CoreLogic states home prices have been increasing between 3.2% to 3.6% for the past six months, “indicating that the range of home price growth has plateaued.”
The lowest price housing tier saw home prices rise 5.5% year-over-year in August 2019, compared to 4.5% growth for the low-to middle-price tier and 3.9% for the middle-to moderate-price tier. Prices for higher priced homes rose 3.2%.
Overall, the HPI has increased annually every month since February 2012 and has gained 61.9% since hitting bottom in March 2011. According to CoreLogic, as of August 2019 the overall HPI was 9% higher than its pre-crisis peak in April 2006.