This is the income you need to afford a $500,000 home in California
RELATED COVERAGE: CA giving away up to $150,000 for first-time homebuyers
The California Dream For All Shared Appreciation loan program, which was first introduced last year and was so popular that it ran out of the $300 million set aside to help first-time homebuyers in just 11 days, has relaunched, the state announced.
LOS ANGELES - Buying a home is a big feat - especially if you do so in California, notorious for being one of the most expensive real estate markets in the U.S.
To determine the income you need to afford a $500,000 home in every state, GOBankingRates compiled data from Federal Reserve Economic Research (6.90%). The property taxes for each state were also collected and sourced from the Tax Foundation.
In California, the minimum income needed for a 20% down payment of a $500,000 home is $117,876. That comes out to a monthly mortgage payment of $2,947. You can see how other states compare by tapping or clicking here.
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Don't forget - if you're a prospective first-time homebuyer in California, applications are now being accepted for the California Dream For All Shared Appreciation loan program, which gives eligible individuals 20% of the home's cost to help with the down payment.
According to the National Association of Realtors (NAR), existing home sales went up 3.1% in January from December 2023, but sales are down 1.7% from one year ago. The median sale price for the country was at $379,100, which is a record high for January and an increase of 5.1% from just one year ago.
Aspiring homeowners in the U.S. must earn $110,871 annually to afford a $402,343 home in 2024 – the median price according to Redfin.
A recent study from Bankrate found aspiring homebuyers in certain states located in the West and Northeast need to earn a minimum salary of $156,000 annually to afford a typical home. California requires the highest annual salary to afford a typical home at $197,057, according to Bankrate’s analysis.
Mississippi requires the lowest income to afford a home in the U.S. at $63,043.
FOX Television Stations contributed to this report.