New data shows income needed to affordably buy a home doubled in the last two years
Oct 13, 2022, 2:00 PM
FILE: A for sale sign is pictured in Salt Lake City on Thursday, July 15, 2021. Most Americans still think owning a home is part of the American Dream. Aspiring homeowners are willing to make some big sacrifices, according to a survey. (Kristin Murphy/Deseret News)
(Kristin Murphy/Deseret News)
SALT LAKE CITY — New data from Zillow found that in order to buy an average home in Salt Lake City, you’d need to earn $55,834 per year in 2020. If you bought the same home this year it would take an income of $107,178.
The data shows a 98% increase in salary requirements in order to afford a typical Salt Lake home.
The jump in income required to make mortgage payments affordable makes Salt Lake the 15th largest increase in the nation.
Axios reported that the median income for Salt Lake County residents is between $40,000 to $50,000. So even a two-income household would not be able to afford the average house.
Zillow calculated their data assuming the ideal of spending no more than 30% of monthly income on a mortgage and that a 20% down payment was paid to get the best mortgage rates.
Learn more about home buying in this episode of Money Making Sense:
