You need to make nearly $90,000 annually to afford a starter home.
Minneapolis, MN, is known for its gorgeous lakes, abundant outdoor recreation, deep history, and snowy winters. In addition to being a cultural hub and unique place to live, Minneapolis is also home to a competitive real estate market that’s seen a surge in popularity over the past few years.
For many, buying a home in Minneapolis is a dream come true, but it’s also important to know how it will impact your finances. From down payments to monthly mortgage payments, there’s a lot to understand before buying your first home
So whether you already live in the City of Lakes or are looking to relocate to the area, here’s a breakdown of the income you’ll need to purchase your first home in Minneapolis.
Check out our original report for a detailed nationwide analysis.
How much income do you need to buy a starter home in Minneapolis?
The median sale price of a starter home in Minneapolis is $255,000. In order to afford this, first-time homebuyers in Minneapolis should make $85,013 per year, up 7.2% from 2023. The median income in Minneapolis is $106,561, meaning the typical resident can afford a starter home.
Only California metros require a higher annual income to afford a starter home. Anaheim, Los Angeles, Oakland, San Diego, San Francisco, and San Jose all top $175,000.
As expected, starter homes in Minneapolis are more affordable than the average home (all price brackets combined; see methodology for details). In order to afford any median-priced home in the area, you’ll need to make $103,640 (as of October 2023).
Nationwide, you need an income of $75,849 to afford a typical starter home, which costs an average of $240,000. The average U.S. household earns an estimated $84,072.
First-time homebuyers’ guide to the Minneapolis housing market
Minneapolis has experienced a growing but changing market over the past few years. House prices have only risen by 8% since January 2021, from $299,250 to $325,000. However, like many cities across the country, the area has been grappling with a shortage of homes. As a result, Minneapolis recently saw a sales whiplash – home sales hit a 20-year high in 2021 before falling to a 12-year low in 2023.
Home prices have somewhat followed this pendulum as well. While prices haven’t risen much overall, they have seen large peaks and valleys. For example, from February 2022 to June 2022, prices rose by 16%. Then, from June to December, they fell by 17.8%. This pendulum swing was seen in many metros across the country, often reacting to changing mortgage rates.
Minneapolis has also done a lot of work to meet the housing needs of its residents, supplying them with around 3,800 new affordable housing units and nearly 18,000 total housing units in 2022. This work continues and is intended to offset the housing deficit from the Great Recession.
If you’re looking to move to Minneapolis, the area is home to plenty of amenities and attractions throughout its diverse neighborhoods. Minnehaha Park, Guthrie Theater, the Chain of Lakes, and the Minneapolis Sculpture Garden are some of the most well known spots, offering waterfront views and fun experiences for people of all ages.
Popular neighborhoods in Minneapolis include Bryn-Mawr, Calhoun Isles, Camden, and Nokomis.
What does a typical down payment look like for a starter home in Minneapolis?
Here are some common down payment amounts for a typical $255,000 starter home in Minneapolis:
| Down payment percentage | Down payment amount |
| 3% down payment | $7,650 |
| 3.5% down payment | $8,925 |
| 5% down payment | $12,750 |
| 10% down payment | $25,500 |
| 15% down payment | $38,250 |
| 20% down payment | $51,000 |
Down payments can range from 0% to 100% of the total house price, depending on your budget, loan type, and long-term priorities. While experts have historically recommended budgeting for a 20% down payment, the increasing cost of homes and continued sluggish wage increases has led to a 15% down payment becoming more common.
Some loan types allow for lower down payment amounts. For example, a Federal Housing Administration (FHA) loan requires just 3.5% down, while the lowest possible down payment for a conventional loan is 3%. These amounts typically depend on your credit scores, so buyers with higher credit scores may qualify for lower down payments.
What is the typical mortgage payment for a starter home in Minneapolis?
The typical monthly mortgage payment for a starter home in Minneapolis is $2,125. This assumes you put 3.5% down and have around a 7% interest rate.
If this payment sounds too high, you could consider renting an apartment in Minneapolis. The median rent price is $1,583, well below the typical mortgage payment. You can also use an affordability calculator to see what you can afford based on your income and down payment.
What should you do next?
If you’re in the market for your first home in Minneapolis, it’s important to understand how much house you can afford. Take your annual income, credit score, the current mortgage rates, and local market trends to make a decision that works best for you.
From there, a Minneapolis agent can help you navigate the entire home buying process and provide valuable local expertise. To learn more about how to buy a home, check out Redfin’s First-Time Homebuyer’s Guide.
Methodology
Redfin divides all U.S. properties into five buckets based on Redfin Estimates of homes’ market values. There are three equal-sized tiers, as well as tiers for the bottom 5% and top 5% of the market. Redfin defines “starter homes” as homes whose sale price fell into the 5th-35th percentile of the Redfin Estimate tier.
We calculated the annual income needed to afford a starter home by assuming a buyer spends no more than 30% of their income on housing payments. Housing payments are calculated assuming the buyer made a 3.5% down payment and also take a month’s median sale price and average mortgage-interest rate into account.
The national income data is adjusted for inflation using the Consumer Price Index. 2024 income is estimated based on projections from the U.S. Census Bureau’s (ACS) 2022 median household income using the 12-month moving average nominal wage growth rate. The rate was compiled from the Current Population Survey and reported by the Federal Reserve Bank of Atlanta.
We assume housing payments include the mortgage principal, interest, property taxes, homeowners insurance, and mortgage insurance (when applicable).
All data sourced February 2024 unless otherwise stated. The Minneapolis metropolitan area includes Saint Paul.
It’s approaching $200,000, among the highest in the nation.
Seattle, WA, is known for its natural beauty, outdoor recreation, delicious cuisine, and tech-focused companies. In addition to being an affordable and unique place to live, Seattle is also home to a highly competitive real estate market that’s seen large changes over the past few years.
For many, buying a home in Seattle is a dream come true, but it’s also important to know how it will impact your finances. From down payments to monthly mortgage payments, there’s a lot to understand before buying your first home
So whether you already live in the Emerald City or are looking to relocate to the area, here’s a breakdown of the income you’ll need to purchase your first home in Seattle.
Check out our original report for a detailed nationwide analysis.
How much income do you need to buy a starter home in Seattle?
The median sale price of a starter home in Seattle is $535,000. In order to afford this, first-time homebuyers in Seattle should make $173,378 per year, up 8.4% from 2023. The median income in Seattle is $126,647, meaning the typical resident cannot afford a starter home.
Only California metros require a higher annual income to afford a starter home. Anaheim, Los Angeles, Oakland, San Diego, San Francisco, and San Jose all top $175,000.
As expected, starter homes in Seattle are more affordable than the average home (all price brackets combined; see methodology for details). In order to afford any median-priced home in the area, you’ll need to make $214,904 (as of October 2023).
Nationwide, you need an income of $75,849 to afford a typical starter home, which costs an average of $240,000. The average U.S. household earns an estimated $84,072.
First-time homebuyers’ guide to the Seattle housing market
Seattle has experienced a growing but mixed market over the past few years. House prices have risen by 12.5% since January 2021, but the metro also saw sharp increases and drops.
Like most other metros in the U.S., Seattle’s housing market exploded in early 2022, with prices rising 17.4% in just three months (from $734,950 in January to $888,844 in March). They have settled back down a little but are still elevated above pre-pandemic prices.
The pandemic-driven housing migration boom also affected Seattle similar to many other coastal metros; more people looked to leave than stay, with buyers searching for sun and affordability. However, Seattle still grew by 17,750 people from 2021-2022, a continuation of years of growth. Nearly 9,000 people left the city from 2020-2021, but this turned out to be a blip.
If you’re looking to move to Seattle, the area is home to plenty of amenities and attractions throughout its unique neighborhoods. The Space Needle, Pike Place Market, and Washington Park Arboretum are some of the most well known spots, offering stunning views and fun experiences for people of all ages.
Some popular neighborhoods in Seattle include Ballard, Columbia City, Green Lake, and West Seattle.
What does a typical down payment look like for a starter home in Seattle?
Here are some common down payment amounts for a typical $535,000 starter home in Seattle:
| Down payment percentage | Down payment amount |
| 3% down payment | $16,050 |
| 3.5% down payment | $18,725 |
| 5% down payment | $26,750 |
| 10% down payment | $53,500 |
| 15% down payment | $80,250 |
| 20% down payment | $107,000 |
Down payments can range from 0% to 100% of the total house price, depending on your budget, loan type, and long-term priorities. While experts have historically recommended budgeting for a 20% down payment, the increasing cost of homes and continued sluggish wage increases has led to a 15% down payment becoming more common.
Some loan types allow for lower down payment amounts. For example, a Federal Housing Administration (FHA) loan requires just 3.5% down, while the lowest possible down payment for a conventional loan is 3%. These amounts typically depend on your credit scores, so buyers with higher credit scores may qualify for lower down payments.
What is the typical mortgage payment for a starter home in Seattle?
The typical monthly mortgage payment for a starter home in Seattle is $4,334. This assumes you put 3.5% down and have around a 7% interest rate.
If this payment sounds too high, you could consider renting an apartment in Seattle. The median rent price is $1,990, under half the typical mortgage payment. You can also use an affordability calculator to see what you can afford based on your income and down payment.
What should you do next?
If you’re in the market for your first home in Seattle, it’s important to understand how much house you can afford. Take your annual income, credit score, the current mortgage rates, and local market trends to make a decision that works best for you.
From there, a Seattle agent can help you navigate the entire home buying process and provide valuable local expertise. To learn more about how to buy a home, check out Redfin’s First-Time Homebuyer’s Guide.
Methodology
Redfin divides all U.S. properties into five buckets based on Redfin Estimates of homes’ market values. There are three equal-sized tiers, as well as tiers for the bottom 5% and top 5% of the market. Redfin defines “starter homes” as homes whose sale price fell into the 5th-35th percentile of the Redfin Estimate tier.
We calculated the annual income needed to afford a starter home by assuming a buyer spends no more than 30% of their income on housing payments. Housing payments are calculated assuming the buyer made a 3.5% down payment and also take a month’s median sale price and average mortgage-interest rate into account.
The national income data is adjusted for inflation using the Consumer Price Index. 2024 income is estimated based on projections from the U.S. Census Bureau’s (ACS) 2022 median household income using the 12-month moving average nominal wage growth rate. The rate was compiled from the Current Population Survey and reported by the Federal Reserve Bank of Atlanta.
We assume housing payments include the mortgage principal, interest, property taxes, homeowners insurance, and mortgage insurance (when applicable).
All data sourced February 2024 unless otherwise stated.
It’s the second-lowest amount in the country.
Pittsburgh, PA, is known for its industrial history, natural beauty, and unique architecture. In addition to being an affordable and unique place to live, Pittsburgh is also home to a competitive real estate market that’s seen many changes over the past few years.
For many, buying a home in Pittsburgh is a dream come true, but it’s also important to know how it will impact your finances. From down payments to monthly mortgage payments, there’s a lot to understand before buying your first home
So whether you already live in the Steel City or are looking to relocate to the area, here’s a breakdown of the income you’ll need to purchase your first home in Pittsburgh.
Check out our original report for a detailed nationwide analysis.
How much income do you need to buy a starter home in Pittsburgh?
The median sale price of a starter home in Pittsburgh is $90,000. In order to afford this, first-time homebuyers in Pittsburgh should make $32,308 per year, down 0.8% from 2023. The median income in Pittsburgh is $79,964, meaning the typical resident can afford a starter home.
Pittsburgh was the only major metropolitan area that saw a year-over-year decline in the income required to purchase a starter home. Additionally, Pittsburgh was the second-most affordable metro in the U.S. for first-time homebuyers, trailing only Detroit.
As expected, starter homes in Pittsburgh are more affordable than the average home (all price brackets combined; see methodology for details). In order to afford any median-priced home in the area, you’ll need to make $64,639 (as of October 2023).
Nationwide, you need an income of $75,849 to afford a typical starter home, which costs an average of $240,000. The average U.S. household earns an estimated $84,072.
First-time homebuyers’ guide to the Pittsburgh housing market
Pittsburgh has experienced a relatively stable market over the past three years; prices haven’t risen above $275,000 or below $200,000. However, the region saw large price jumps in 2022 and 2023, similar to the rest of the U.S. Prices rose by 21% (to $270,000) from January to June 2022, and 26% (to $275,000) from January to July 2023. After each rise, prices fell back down.
Even with some notable growth, Pittsburgh continues to be one of the most affordable places to buy a house in the U.S. However, prices are currently rising more quickly than anywhere else in the nation, jumping 22% in February. Low supply and an inflow of homebuyers searching for affordability are helping drive prices up, a trend that has been affecting most of the Rust Belt.
If you’re looking to move to Pittsburgh, the area is home to plenty of amenities and attractions throughout its diverse neighborhoods. PNC Park, the Phipps Conservatory and Botanical Gardens, and Mount Washington are some of the most well known, offering beauty and enrichment for people of all ages.
Some popular neighborhoods in Pittsburgh include Bloomfield, Greenfield, and Morningside.
What does a typical down payment look like for a starter home in Pittsburgh?
Here are some common down payment amounts for a typical $90,000 starter home in Pittsburgh:
| Down payment percentage | Down payment amount |
| 3% down payment | $2,700 |
| 3.5% down payment | $3,150 |
| 5% down payment | $4,500 |
| 10% down payment | $9,000 |
| 15% down payment | $13,500 |
| 20% down payment | $18,000 |
Down payments can range from 0% to 100% of the total house price, depending on your budget, loan type, and long-term priorities. While experts have historically recommended budgeting for a 20% down payment, the increasing cost of homes and continued sluggish wage increases has led to a 15% down payment becoming more common.
Some loan types allow for lower down payment amounts. For example, a Federal Housing Administration (FHA) loan requires just 3.5% down, while the lowest possible down payment for a conventional loan is 3%. These amounts typically depend on your credit scores, so buyers with higher credit scores may qualify for lower down payments.
What is the typical mortgage payment for a starter home in Pittsburgh?
The typical monthly mortgage payment for a starter home in Pittsburgh is $808. This assumes you put 3.5% down and have around a 7% interest rate.
If this payment sounds too high, renting an apartment in Pittsburgh likely won’t be any more affordable. The median rent price is $1,400, nearly double the typical mortgage payment. You can also use an affordability calculator to see what you can afford based on your income and down payment.
What should you do next?
If you’re in the market for your first home in Pittsburgh, it’s important to understand how much house you can afford. Take your annual income, credit score, the current mortgage rates, and local market trends to make a decision that works best for you.
From there, a Pittsburgh agent can help you navigate the entire home buying process and provide valuable local expertise. To learn more about how to buy a home, check out Redfin’s First-Time Homebuyer’s Guide.
Methodology
Redfin divides all U.S. properties into five buckets based on Redfin Estimates of homes’ market values. There are three equal-sized tiers, as well as tiers for the bottom 5% and top 5% of the market. Redfin defines “starter homes” as homes whose sale price fell into the 5th-35th percentile of the Redfin Estimate tier.
We calculated the annual income needed to afford a starter home by assuming a buyer spends no more than 30% of their income on housing payments. Housing payments are calculated assuming the buyer made a 3.5% down payment and also take a month’s median sale price and average mortgage-interest rate into account.
The national income data is adjusted for inflation using the Consumer Price Index. 2024 income is estimated based on projections from the U.S. Census Bureau’s (ACS) 2022 median household income using the 12-month moving average nominal wage growth rate. The rate was compiled from the Current Population Survey and reported by the Federal Reserve Bank of Atlanta.
We assume housing payments include the mortgage principal, interest, property taxes, homeowners insurance, and mortgage insurance (when applicable).
All data sourced February 2024 unless otherwise stated.
The Mile High City requires lofty incomes from first-time homebuyers.
Denver, CO, is known for its mountain views, bike-friendly infrastructure, and renowned outdoor recreation. In addition to being a unique and beautiful place to live, Denver is also home to a competitive real estate market that’s seen many changes over the past few years.
For many, buying a home in Denver is a dream come true, but it’s also important to know how it will impact your finances. From down payments to monthly mortgage payments, there’s a lot to understand before buying your first home
So whether you already live in The Mile High City or are looking to relocate to the area, here’s a breakdown of the income you’ll need to purchase your first home in Denver.
Check out our original report for a detailed nationwide analysis.
How much income do you need to buy a starter home in Denver?
The median sale price of a starter home in Denver is $405,000. In order to afford this, first-time homebuyers in Denver should make $127,808 per year, up 5.6% from 2023. However, the median income in Denver is $110,552, meaning the typical resident cannot afford a starter home.
As expected, starter homes in Denver are more affordable than the average home (all price brackets combined; see methodology for details). In order to afford any median-priced home in the area, you’ll need to make $158,187 (as of October 2023).
Nationwide, you need an income of $75,849 to afford a typical starter home, which costs an average of $240,000. The average U.S. household earns an estimated $84,072.
First-time homebuyers’ guide to the Denver housing market
Denver has experienced a mixed market over the past few years, but prices have generally risen. Since January 2021, house prices have risen by 16%, from $475,000 to $565,000. However, the metro has seen large rises and drops since. Some of the most notable market changes happened in 2022 due to supply shortages, high mortgage rates, and few new listings, helping push house prices in Denver to $650,000.
The pandemic-driven housing migration boom affected Denver similarly to many coastal metros. In fact, more people looked to leave Denver than stay to close out 2022, with many buyers searching for sun and affordability. However, the region has still seen consistent growth over the past decade and only recently started slowing down.
If you’re looking to move to Denver, the area is home to an abundance of desirable amenities and attractions throughout its diverse neighborhoods. The Denver Botanic Gardens, Denver Museum of Nature & Science, and the 16th Street Mall are some of the most well known, offering beauty and enrichment for people of all ages.
Some popular neighborhoods in Denver include Baker, Capitol Hill, and Five Points.
What does a typical down payment look like for a starter home in Denver?
Here are some common down payment amounts for a typical $405,000 starter home in Denver:
| Down payment percentage | Down payment amount |
| 3% down payment | $12,150 |
| 3.5% down payment | $14,175 |
| 5% down payment | $20,250 |
| 10% down payment | $40,500 |
| 15% down payment | $60,750 |
| 20% down payment | $81,000 |
Down payments can range from 0% to 100% of the total house price, depending on your budget, loan type, and long-term priorities. While experts have historically recommended budgeting for a 20% down payment, the increasing cost of homes and continued sluggish wage increases has led to a 15% down payment becoming more common.
Some loan types allow for lower down payment amounts. For example, a Federal Housing Administration (FHA) loan requires just 3.5% down, while the lowest possible down payment for a conventional loan is 3%. These amounts typically depend on your credit scores, so buyers with higher credit scores may qualify for lower down payments.
What is the typical mortgage payment for a starter home in Denver?
The typical monthly mortgage payment for a starter home in Denver is $3,195. This assumes you put 3.5% down and have around a 7% interest rate.
If this payment sounds too high, you could consider renting an apartment in Denver. The average rent price is $1,883, possibly making it a better option while you save for a down payment on a house. You can also use an affordability calculator to see what you can afford based on your income and down payment.
What should you do next?
If you’re in the market for your first home in Denver, it’s important to understand how much house you can afford. Take your annual income, credit score, the current mortgage rates, and local market trends to make a decision that works best for you.
From there, a Denver agent can help you navigate the entire home buying process and provide valuable local expertise. To learn more about how to buy a home, check out Redfin’s First-Time Homebuyer’s Guide.
Methodology
Redfin divides all U.S. properties into five buckets based on Redfin Estimates of homes’ market values. There are three equal-sized tiers, as well as tiers for the bottom 5% and top 5% of the market. Redfin defines “starter homes” as homes whose sale price fell into the 5th-35th percentile of the Redfin Estimate tier.
We calculated the annual income needed to afford a starter home by assuming a buyer spends no more than 30% of their income on housing payments. Housing payments are calculated assuming the buyer made a 3.5% down payment and also take a month’s median sale price and average mortgage-interest rate into account.
The national income data is adjusted for inflation using the Consumer Price Index. 2024 income is estimated based on projections from the U.S. Census Bureau’s (ACS) 2022 median household income using the 12-month moving average nominal wage growth rate. The rate was compiled from the Current Population Survey and reported by the Federal Reserve Bank of Atlanta.
We assume housing payments include the mortgage principal, interest, property taxes, homeowners insurance, and mortgage insurance (when applicable).
All data sourced February 2024 unless otherwise stated.
It’s less than Seattle, but you still need well over six figures.
Portland, OR, is known for its quirky vibes, lush urban parks, and delicious Pacific Northwest cuisine. In addition to being a unique and rewarding place to live, Portland is also home to a competitive real estate market that’s seen many changes over the past few years.
For many, buying a home in Portland is a dream come true, but it’s also important to know how it will impact your finances. From down payments to monthly mortgage payments, there’s a lot to understand before buying your first home
So whether you already live in The City of Roses or are looking to relocate to the area, here’s a breakdown of the income you’ll need to purchase your first home in Portland.
Check out our original report for a detailed nationwide analysis.
How much income do you need to buy a starter home in Portland?
The median sale price of a starter home in Portland is $401,840. In order to afford this, first-time homebuyers in Portland should make $130,715 per year, up 6.0% from 2023. However, the median income in Portland is $101,552, meaning the typical resident cannot afford a starter home.
As expected, starter homes in Portland are more affordable than the average home (all price brackets combined; see methodology for details). In order to afford any median-priced home in the area, you’ll need to make $149,023 (as of October 2023).
Nationwide, you need an income of $75,849 to afford a typical starter home, which costs an average of $240,000. The average U.S. household earns an estimated $84,072.
First-time homebuyers’ guide to the Portland housing market
Portland has experienced a mixed market over the past few years. House prices have only risen by 1.3% since January 2021, but the metro saw sharp rises and drops during and following the pandemic.
The pandemic-driven housing migration boom affected Portland similar to many other coastal metros; more people looked to leave than stay, with buyers searching for sun and affordability. Portland actually lost 3.3% of its population from 2020-2023, a dramatic shift following nearly a decade of sustained growth. This change, along with high mortgage rates, helped drop house prices by 21% from May 2022 to January 2023, from a high of $580,000 to $456,000. Another price spike and drop followed soon after before leveling out in early 2024.
Importantly, Oregon also has the nation’s highest rate of chronic homelessness. The issue is especially severe in Portland, with the unhoused population increasing 65% from 2015-2023.
There’s a lot to love about Rose City, though. If you’re looking to move to Portland, the city is home to many famous and eclectic amenities and attractions throughout its diverse neighborhoods. Forest Park, Powell’s Books, and the Hoyt Arboretum are some of the most well known, offering natural beauty and entertainment for people of all ages. Portland also offers 400 miles of bikeways, breathtaking scenery, and is within a few hours from the coast and Columbia River Gorge.
Some popular neighborhoods in Portland include the Pearl District, Hawthorne, and Buckman.
What does a typical down payment look like for a starter home in Portland?
Here are some common down payment amounts for a typical $401,840 starter home in Portland:
| Down payment percentage | Down payment amount |
| 3% down payment | $12,055 |
| 3.5% down payment | $14,064 |
| 5% down payment | $20,092 |
| 10% down payment | $40,184 |
| 15% down payment | $60,276 |
| 20% down payment | $80,368 |
Down payments can range from 0% to 100% of the total house price, depending on your budget, loan type, and long-term priorities. While experts have historically recommended budgeting for a 20% down payment, the increasing cost of homes and continued sluggish wage increases has led to a 15% down payment becoming more common.
Some loan types allow for lower down payment amounts. For example, a Federal Housing Administration (FHA) loan requires just 3.5% down, while the lowest possible down payment for a conventional loan is 3%. These amounts typically depend on your credit scores, so buyers with higher credit scores may qualify for lower down payments.
What is the typical mortgage payment for a starter home in Portland?
The typical monthly mortgage payment for a starter home in Portland is $3,268. This assumes you put 3.5% down and have around a 7% interest rate.
If this payment sounds too high, you could consider renting an apartment in Portland. The average rent price is $1,802, possibly making it a better option while you save for a down payment on a house. You can also use an affordability calculator to see what you can afford based on your income and down payment.
What should you do next?
If you’re in the market for your first home in Portland, it’s important to understand how much house you can afford. Take your annual income, credit score, the current mortgage rates, and local market trends to make a decision that works best for you.
From there, a Portland agent can help you navigate the entire home buying process and provide valuable local expertise. To learn more about how to buy a home, check out Redfin’s First-Time Homebuyer’s Guide.
Methodology
Redfin divides all U.S. properties into five buckets based on Redfin Estimates of homes’ market values. There are three equal-sized tiers, as well as tiers for the bottom 5% and top 5% of the market. Redfin defines “starter homes” as homes whose sale price fell into the 5th-35th percentile of the Redfin Estimate tier.
We calculated the annual income needed to afford a starter home by assuming a buyer spends no more than 30% of their income on housing payments. Housing payments are calculated assuming the buyer made a 3.5% down payment and also take a month’s median sale price and average mortgage-interest rate into account.
The national income data is adjusted for inflation using the Consumer Price Index. 2024 income is estimated based on projections from the U.S. Census Bureau’s (ACS) 2022 median household income using the 12-month moving average nominal wage growth rate. The rate was compiled from the Current Population Survey and reported by the Federal Reserve Bank of Atlanta.
We assume housing payments include the mortgage principal, interest, property taxes, homeowners insurance, and mortgage insurance (when applicable).
All data sourced February 2024 unless otherwise stated.
While it’s less than in Miami, it’s still more than many residents make.
Tampa, FL, is known for its crystal clear beaches, historic neighborhoods, lively sports culture, and unique festivals. In addition to being a coastal haven full of culture, Tampa is also home to a fairly competitive real estate market that’s seen large growth in recent years.
For many, buying a home in Tampa is a dream come true, but it’s also important to know how it will impact your finances. From down payments to monthly mortgage payments, there’s a lot to understand before buying your first home
So whether you already live in The Big Guava or are looking to relocate to the area, here’s a breakdown of the income you’ll need to purchase your first home in Tampa.
Check out our original report for a detailed nationwide analysis.
How much income do you need to buy a starter home in Tampa?
The median sale price of a starter home in Tampa is $255,000. In order to afford this, first-time homebuyers in Tampa should make $82,528 per year, up 7.8% from 2023. However, the median income in Tampa is $75,316, meaning the typical resident can’t afford a starter home.
As expected, starter homes in Tampa are more affordable than the average home (all price brackets combined; see methodology for details). In order to afford any median-priced home in the area, you’ll need to make $103,613 (as of October 2023).
Nationwide, you need an income of $75,849 to afford a typical starter home, which costs an average of $240,000. The average U.S. household earns an estimated $84,072.
First-time homebuyers’ guide to the Tampa housing market
Tampa’s housing market has experienced steady growth in the past five years, with a larger jump in popularity during and after the pandemic. Tampa’s recent popularity has largely been due to its sunny weather and relatively affordable housing, making it attractive for coastal homebuyers searching for sunshine and affordability. In fact, Tampa was the second-most popular metro for relocating homebuyers nationwide in June 2022.
This popularity has helped push home prices above the national median and beyond. From January 2021 to April 2024, the median home price in Tampa rose from $290,000 to $427,000. The area was particularly susceptible to buyers backing out of contracts, though.
Interestingly, condos in the area have actually dropped in price recently as they recover from a surge in popularity that priced out many buyers. Rising insurance and HOA costs resulting from extreme climate risks also helped lower prices.
If you’re looking to move to Tampa, the area is home to many amenities and attractions throughout its neighborhoods. The Busch Gardens, Florida Aquarium, ZooTampa, and Ybor City (a historic neighborhood) are a few popular options. Some popular neighborhoods in Tampa include Forest Hills, Harbour Island, and Bayshore Beautiful.
What does a typical down payment look like for a starter home in Tampa?
Here are some common down payment amounts for a typical $255,000 starter home in Tampa:
| Down payment percentage | Down payment amount |
| 3% down payment | $7,650 |
| 3.5% down payment | $8,925 |
| 5% down payment | $12,750 |
| 10% down payment | $25,500 |
| 15% down payment | $38,250 |
| 20% down payment | $51,000 |
Down payments can range from 0% to 100% of the total house price, depending on your budget, loan type, and long-term priorities. While experts have historically recommended budgeting for a 20% down payment, the increasing cost of homes and continued sluggish wage increases has led to a 15% down payment becoming more common.
Some loan types allow for lower down payment amounts. For example, a Federal Housing Administration (FHA) loan requires just 3.5% down, while the lowest possible down payment for a conventional loan is 3%. These amounts typically depend on your credit scores, so buyers with higher credit scores may qualify for lower down payments.
What is the typical mortgage payment for a starter home in Tampa?
The typical monthly mortgage payment for a starter home in Tampa is $2,063. This assumes you put 3.5% down and have around a 7% interest rate.
If this payment sounds too high, Tampa rentals may not be any more affordable unfortunately; the average rent price in Tampa is $2,288, over $200 more than the median mortgage payment. Regardless, you can use an affordability calculator to see what you can afford based on your income and down payment.
What should you do next?
If you’re in the market for your first home in Tampa, it’s important to understand how much house you can afford. Take your annual income, credit score, the current mortgage rates, and local market trends to make a decision that works best for you.
From there, a Tampa agent can help you navigate the entire home buying process and provide valuable local expertise. To learn more about how to buy a home, check out Redfin’s First-Time Homebuyer’s Guide.
Methodology
Redfin divides all U.S. properties into five buckets based on Redfin Estimates of homes’ market values. There are three equal-sized tiers, as well as tiers for the bottom 5% and top 5% of the market. Redfin defines “starter homes” as homes whose sale price fell into the 5th-35th percentile of the Redfin Estimate tier.
We calculated the annual income needed to afford a starter home by assuming a buyer spends no more than 30% of their income on housing payments. Housing payments are calculated assuming the buyer made a 3.5% down payment and also take a month’s median sale price and average mortgage-interest rate into account.
The national income data is adjusted for inflation using the Consumer Price Index. 2024 income is estimated based on projections from the U.S. Census Bureau’s (ACS) 2022 median household income using the 12-month moving average nominal wage growth rate. The rate was compiled from the Current Population Survey and reported by the Federal Reserve Bank of Atlanta.
We assume housing payments include the mortgage principal, interest, property taxes, homeowners insurance, and mortgage insurance (when applicable).
All data sourced February 2024 unless otherwise stated.
It’s less than Miami, Orlando, and Tampa.
Jacksonville, FL, is known for its 80,000 acres of parks, miles of beaches, and delicious cuisine. In addition to being a coastal respite, Jacksonville is also home to a fairly competitive real estate market that’s seen moderate growth in recent years.
For many, buying a home in Jacksonville is a dream come true, but it’s also important to know how it will impact your finances. From down payments to monthly mortgage payments, there’s a lot to understand before buying your first home
So whether you already live in Florida’s capital or are looking to relocate to the area, here’s a breakdown of the income you’ll need to purchase your first home in Jacksonville.
Check out our original report for a detailed nationwide analysis.
How much income do you need to buy a starter home in Jacksonville?
The median sale price of a starter home in Jacksonville is $239,500. In order to afford this, first-time homebuyers in Jacksonville should make $77,040 per year, up 9.9% from 2023. Also, the median income in Jacksonville is $83,778, meaning the typical resident can afford a starter home.
As expected, starter homes in Jacksonville are more affordable than the average home (all price brackets combined; see methodology for details). In order to afford any median-priced home in the area, you’ll need to make $99,549 (as of October 2023).
Nationwide, you need an income of $75,849 to afford a typical starter home, which costs an average of $240,000. The average U.S. household earns an estimated $84,072.
First-time homebuyers’ guide to the Jacksonville housing market
Jacksonville’s housing market has experienced steady growth following the pandemic. While not as popular of a migration destination as neighbors Miami and Tampa, the area has still seen an inflow of homebuyers from around the country. The city’s population rose by 5% from 2019 to 2021 and is nearing the 1 million mark.
This growth has lifted house prices by 29% over the last three years, from $225,000 in January 2021 to $315,000 today.
However, condos in the area have actually dropped in price recently as they recover from a surge in popularity that priced out many buyers. Rising insurance and HOA costs resulting from extreme climate risks also pushed prices down.
If you’re looking to move to the Florida capital, the area is home to many amenities and attractions throughout its neighborhoods, like the Jacksonville Zoo and Gardens, Riverside Arts Market, and Kathryn Abbey Hanna Park. Some popular neighborhoods in Jacksonville include Arlington, Baymeadows, and Mandarin.
What does a typical down payment look like for a starter home in Jacksonville?
Here are some common down payment amounts for a typical $239,500 starter home in Jacksonville:
| Down payment percentage | Down payment amount |
| 3% down payment | $7,185 |
| 3.5% down payment | $8,383 |
| 5% down payment | $11,975 |
| 10% down payment | $23,950 |
| 15% down payment | $35,925 |
| 20% down payment | $47,900 |
Down payments can range from 0% to 100% of the total house price, depending on your budget, loan type, and long-term priorities. While experts have historically recommended budgeting for a 20% down payment, the increasing cost of homes and continued sluggish wage increases has led to a 15% down payment becoming more common.
Some loan types allow for lower down payment amounts. For example, a Federal Housing Administration (FHA) loan requires just 3.5% down, while the lowest possible down payment for a conventional loan is 3%. These amounts typically depend on your credit scores, so buyers with higher credit scores may qualify for lower down payments.
What is the typical mortgage payment for a starter home in Jacksonville?
The typical monthly mortgage payment for a starter home in Jacksonville is $1,926. This assumes you put 3.5% down and have around a 7% interest rate.
If this payment sounds too high, you could consider renting an apartment in Jacksonville. The average rent price is $1,683, possibly making it a better option while you save for a down payment on a house. You can also use an affordability calculator to see what you can afford based on your income and down payment.
What should you do next?
If you’re in the market for your first home in Jacksonville, it’s important to understand how much house you can afford. Take your annual income, credit score, the current mortgage rates, and local market trends to make a decision that works best for you.
From there, a Jacksonville agent can help you navigate the entire home buying process and provide valuable local expertise. To learn more about how to buy a home, check out Redfin’s First-Time Homebuyer’s Guide.
Methodology
Redfin divides all U.S. properties into five buckets based on Redfin Estimates of homes’ market values. There are three equal-sized tiers, as well as tiers for the bottom 5% and top 5% of the market. Redfin defines “starter homes” as homes whose sale price fell into the 5th-35th percentile of the Redfin Estimate tier.
We calculated the annual income needed to afford a starter home by assuming a buyer spends no more than 30% of their income on housing payments. Housing payments are calculated assuming the buyer made a 3.5% down payment and also take a month’s median sale price and average mortgage-interest rate into account.
The national income data is adjusted for inflation using the Consumer Price Index. 2024 income is estimated based on projections from the U.S. Census Bureau’s (ACS) 2022 median household income using the 12-month moving average nominal wage growth rate. The rate was compiled from the Current Population Survey and reported by the Federal Reserve Bank of Atlanta.
We assume housing payments include the mortgage principal, interest, property taxes, homeowners insurance, and mortgage insurance (when applicable).
All data sourced February 2024 unless otherwise stated.
Even in a softer local market, you still need to make well above $100,000.
Austin, TX, is a city rich in culture, events, outdoor recreation, and incredible cuisine. In addition to being a popular place to live, Austin is also home to a fairly competitive real estate market that’s seen significant change in recent years.
For many, buying a home in Austin is a dream come true, but it’s also important to know how it will impact your finances. From down payments to monthly mortgage payments, there’s a lot to understand before buying your first home
So whether you already live in ATX or are looking to relocate to the area, here’s a breakdown of the income you’ll need to purchase your first home in Austin.
Check out our original report for a detailed nationwide analysis.
How much income do you need to buy a starter home in Austin?
The median sale price of a starter home in Austin is $330,000. In order to afford this, first-time homebuyers in Austin should make $118,201 per year, up 0.7% from 2023. However, the median income in Austin is $104,076, meaning the typical resident often can’t afford a starter home.
As expected, starter homes in Austin are more affordable than the average home (all price brackets combined; see methodology for details). In order to afford any median-priced home in the area, you’ll need to make $126,208 (as of October 2023).
Nationwide, you need an income of $75,849 to afford a typical starter home, which costs an average of $240,000. The average U.S. household earns an estimated $84,072.
First-time homebuyers’ guide to the Austin housing market
Austin’s housing market has gone through ups and downs in the past four years, with rapid growth followed by sharp declines.
At the beginning of the pandemic, the city was one of the most popular migration destinations for coastal homebuyers searching for sunshine and affordability. In fact, the city was the outright most popular metro for relocating homebuyers at the end of 2020, which continued into 2021. This remarkable popularity boosted house prices by over $200,000 from January 2021 to May 2022.
However, this rapid rise priced some people out of the market and caused house prices to fall. People also stopped looking to move into the city, and by the end of 2023, Austin lost homebuyers for the first time on record.
As of April 2024, house prices are sitting at $550,000, a 17.8% drop from their May 2022 peak. The Austin-San Antonio metropolitan area is still expected to grow to 8.3 million people by 2050.
The capital of Texas is home to many amenities and attractions throughout its neighborhoods, like the Bullock Texas State History Museum, Barton Springs Pool, and Castle Hill. Some popular neighborhoods in Austin include Crestview, Allandale, and South Congress.
What does a typical down payment look like for a starter home in Austin?
Here are some common down payment amounts for a typical $330,000 starter home in Austin:
| Down payment percentage | Down payment amount |
| 3% down payment | $9,900 |
| 3.5% down payment | $11,550 |
| 5% down payment | $16,500 |
| 10% down payment | $33,000 |
| 15% down payment | $49,500 |
| 20% down payment | $66,000 |
Down payments can range from 0% to 100% of the total house price, depending on your budget, loan type, and long-term priorities. While experts have historically recommended budgeting for a 20% down payment, the increasing cost of homes and continued sluggish wage increases has led to a 15% down payment becoming more common.
Some loan types allow for lower down payment amounts. For example, a Federal Housing Administration (FHA) loan requires just 3.5% down, while the lowest possible down payment for a conventional loan is 3%. These amounts typically depend on your credit scores, so buyers with higher credit scores may qualify for lower down payments.
What is the typical mortgage payment for a starter home in Austin?
The typical monthly mortgage payment for a starter home in Austin is $2,955. This assumes you put 3.5% down and have around a 7% interest rate.
If this payment sounds too high, you could consider renting an apartment in Austin. The average rent price is $2,216, possibly making it a better option while you save for a down payment on a house. You can also use an affordability calculator to see what you can afford based on your income and down payment.
What should you do next?
If you’re in the market for your first home in Austin, it’s important to understand how much house you can afford. Take your annual income, credit score, the current mortgage rates, and local market trends to make a decision that works best for you.
From there, an Austin agent can help you navigate the entire home buying process and provide valuable local expertise. To learn more about how to buy a home, check out Redfin’s First-Time Homebuyer’s Guide.
Methodology
Redfin divides all U.S. properties into five buckets based on Redfin Estimates of homes’ market values. There are three equal-sized tiers, as well as tiers for the bottom 5% and top 5% of the market. Redfin defines “starter homes” as homes whose sale price fell into the 5th-35th percentile of the Redfin Estimate tier.
We calculated the annual income needed to afford a starter home by assuming a buyer spends no more than 30% of their income on housing payments. Housing payments are calculated assuming the buyer made a 3.5% down payment and also take a month’s median sale price and average mortgage-interest rate into account.
The national income data is adjusted for inflation using the Consumer Price Index. 2024 income is estimated based on projections from the U.S. Census Bureau’s (ACS) 2022 median household income using the 12-month moving average nominal wage growth rate. The rate was compiled from the Current Population Survey and reported by the Federal Reserve Bank of Atlanta.
We assume housing payments include the mortgage principal, interest, property taxes, homeowners insurance, and mortgage insurance (when applicable).
All data sourced February 2024 unless otherwise stated.
You now need a six-figure salary to afford a starter home in Phoenix.
Phoenix, AZ, is a sunny, outdoorsy city home to renowned sports franchises, spectacular vistas, and plenty of golf courses. However, Phoenix isn’t just the heart of The Valley of the Sun; it’s also home to a booming real estate market that’s seen significant growth in recent years.
For many, buying a home in Phoenix is a dream come true, but it’s also important to know how it will impact your finances. From down payments to monthly mortgage payments, there’s a lot to understand before buying your first home
So whether you already live in The Valley of the Sun or are looking to relocate to the area, here’s a breakdown of the income you’ll need to purchase your first home in Phoenix.
Check out our original report for a detailed nationwide analysis.
How much income do you need to buy a starter home in Phoenix?
The median sale price of a starter home in Phoenix is $330,000. In order to afford this, first-time homebuyers in Phoenix should make $101,321 per year, up 6.6% from 2023. However, the median income in Phoenix is $89,521, meaning the typical resident often can’t afford a starter home.
As expected, starter homes in Phoenix are much more affordable than the average home (all price brackets combined). In order to afford any median-priced home in the area, you’ll need to make $121,368 (as of October 2023).
Nationwide, you need an income of $75,849 to afford a typical starter home, which costs an average of $240,000. The average U.S. household earns an estimated $84,072.
First-time homebuyers’ guide to the Phoenix housing market
Phoenix has been a popular migration destination for years among homebuyers looking for sunshine and affordability. But during the pandemic, the region saw an explosion of growth and popularity, which has hardly slowed down. In fact, the city has consistently been the top destination for relocating home buyers. This influx has boosted house prices by 29% since January 2021, from $325,000 to $459,000 in April 2024. House prices have nearly tripled in the past decade.
Climate risks are a major concern for residents in Phoenix, though. The city is in the midst of a decades-long megadrought plaguing the Southwestern U.S., and recently hit 110° F for 31 days in a row. 2023 was also the city’s hottest and driest on record.These trends are expected to continue as climate change worsens.
The desert city is home to many world-class amenities located throughout its spread-out neighborhoods. Some popular neighborhoods in Phoenix include Central City, Maryvale, and Ahwatukee Foothills. From the Phoenix Zoo and Heard Museum to South Mountain and Camelback Mountain, there are plenty of reasons to call Phoenix home.
What does a typical down payment look like for a starter home in Phoenix?
Here are some common down payment amounts for a typical $330,000 starter home in Phoenix:
| Down payment percentage | Down payment amount |
| 3% down payment | $9,900 |
| 3.5% down payment | $11,550 |
| 5% down payment | $16,500 |
| 10% down payment | $33,000 |
| 15% down payment | $49,500 |
| 20% down payment | $66,000 |
Down payments can range from 0% to 100% of the total house price, depending on your budget, loan type, and long-term priorities. While experts have historically recommended budgeting for a 20% down payment, the increasing cost of homes and continued sluggish wage increases has led to a 15% down payment becoming more common.
Some loan types allow for lower down payment amounts. For example, a Federal Housing Administration (FHA) loan requires just 3.5% down, while the lowest possible down payment for a conventional loan is 3%. These amounts typically depend on your credit scores, so buyers with higher credit scores may qualify for lower down payments.
What is the typical mortgage payment for a starter home in Phoenix?
The typical monthly mortgage payment for a starter home in Phoenix is $2,533. This assumes you put 3.5% down and have around a 7% interest rate.
If this payment sounds too high, you could consider renting an apartment in Phoenix. The average rent price is $1,962, possibly making it a better option while you save for a down payment on a house. You can also use an affordability calculator to see what you can afford based on your income and down payment.
What should you do next?
If you’re in the market for your first home in Phoenix, it’s important to understand how much house you can afford. Take your annual income, credit score, the current mortgage rates, and local market trends to make a decision that works best for you.
From there, a Phoenix agent can help you navigate the entire home buying process and provide valuable local expertise. To learn more about how to buy a home, check out Redfin’s First-Time Homebuyer’s Guide.
Methodology
Redfin divides all U.S. properties into five buckets based on Redfin Estimates of homes’ market values. There are three equal-sized tiers, as well as tiers for the bottom 5% and top 5% of the market. Redfin defines “starter homes” as homes whose sale price fell into the 5th-35th percentile of the Redfin Estimate tier.
We calculated the annual income needed to afford a starter home by assuming a buyer spends no more than 30% of their income on housing payments. Housing payments are calculated assuming the buyer made a 3.5% down payment and also take a month’s median sale price and average mortgage-interest rate into account.
The national income data is adjusted for inflation using the Consumer Price Index. 2024 income is estimated based on projections from the U.S. Census Bureau’s (ACS) 2022 median household income using the 12-month moving average nominal wage growth rate. The rate was compiled from the Current Population Survey and reported by the Federal Reserve Bank of Atlanta.
We assume housing payments include the mortgage principal, interest, property taxes, homeowners insurance, and mortgage insurance (when applicable).
All data sourced February 2024 unless otherwise stated.
While you don’t quite need a six-figure salary, it comes close.
Nashville, TN, is not just the Music City; it’s also home to a thriving real estate market that’s seen significant growth in recent years. For many, buying a home in Nashville is a dream come true, but it’s also important to know how it will impact your finances. From down payments to monthly mortgage payments, there’s a lot to understand before buying your first home
So whether you already live in Music City or are looking to relocate to the area, here’s a breakdown of the income you’ll need to purchase your first home in Nashville.
Check out our original report for a detailed nationwide analysis.
How much income do you need to buy a starter home in Nashville?
The median sale price of a starter home in Nashville is $315,000. In order to afford this, first-time homebuyers in Nashville should make $98,314 per year, up 7% from 2023. However, the median income in Nashville is $91,252, meaning the typical resident often can’t afford a starter home.
As expected, starter homes are much more affordable than non-starter homes in Nashville. In order to afford a median-priced non-starter home, you’ll need to make $124,095 (as of October 2023).
Nationwide, you need an income of $75,849 to afford a typical starter home, which costs an average of $240,000. The average U.S. household earns an estimated $84,072.
First-time homebuyers’ guide to the Nashville housing market
Nashville has seen tremendous growth recently – especially since the pandemic – as people have been looking for sunshine and affordability. In fact, the city has been among the most popular migration destinations since 2021. This influx has boosted house prices by nearly 30% since January 2021, from $335,000 to $475,000 in April 2024.
The city is home to many world-class amenities located throughout its diverse neighborhoods. Some popular neighborhoods in Nashville include East Nashville, Germantown, and Midtown. From the Parthenon and the Grand Ole Opry to Music Row and the Ryman Auditorium, there are so many great reasons to call Nashville home.
What does a typical down payment look like for a starter home in Nashville?
Here are some common down payment amounts for a typical $315,000 starter home in Nashville:
| Down payment percentage | Down payment amount |
| 3% down payment | $9,450 |
| 3.5% down payment | $11,025 |
| 5% down payment | $15,750 |
| 10% down payment | $31,500 |
| 15% down payment | $47,250 |
| 20% down payment | $63,000 |
Down payments can range from 0% to 100% of the total house price, depending on your budget, loan type, and long-term priorities. While experts have historically recommended budgeting for a 20% down payment, the increasing cost of homes and continued sluggish wage increases has led to a 15% down payment becoming more common.
Some loan types allow for lower down payment amounts. For example, a Federal Housing Administration (FHA) loan requires just 3.5% down, while the lowest possible down payment for a conventional loan is 3%. These amounts typically depend on your credit scores, so buyers with higher credit scores may qualify for lower down payments.
What is the typical mortgage payment for a starter home in Nashville?
The typical monthly mortgage payment for a starter home in Nashville is $2,458. This assumes you put 3.5% down and have around a 7% interest rate.
If this payment sounds too high, you could consider renting an apartment in Nashville. The average rent price is $1,923, possibly making it a better option while you save for a down payment on a house. You can also use an affordability calculator to see what you can afford based on your income and down payment.
What should you do next?
If you’re in the market for your first home in Nashville, it’s important to understand how much house you can afford. Take your annual income, credit score, the current mortgage rates, and local market trends to make a decision that works best for you.
From there, a Nashville agent can help you navigate the entire home buying process and provide valuable local expertise. To learn more about how to buy a home, check out Redfin’s First-Time Homebuyer’s Guide.
Methodology
Redfin defines “starter homes” as homes whose sale price fell into the 5th-35th percentile of the Redfin Estimate tier. For context, Redfin divides all U.S. properties into five buckets based on Redfin Estimates of homes’ market values. There are three equal-sized tiers, as well as tiers for the bottom 5% and top 5% of the market.
We calculated the annual income needed to afford a starter home by assuming a buyer spends no more than 30% of their income on housing payments. Housing payments are calculated assuming the buyer made a 3.5% down payment and also take a month’s median sale price and average mortgage-interest rate into account.
The national income data is adjusted for inflation using the Consumer Price Index. 2024 income is estimated based on projections from the U.S. Census Bureau’s (ACS) 2022 median household income using the 12-month moving average nominal wage growth rate. The rate was compiled from the Current Population Survey and reported by the Federal Reserve Bank of Atlanta.
We assume housing payments include the mortgage principal, interest, property taxes, homeowners insurance, and mortgage insurance (when applicable).
All data sourced February 2024 unless otherwise stated.