Home ownership is a goal for many in their lifetime, but making enough money to own a home is a major determining factor.
Houston Realtor Paige Martin, a broker associate of Keller Williams Memorial, crunched the numbers for her clients on Houston Properties online and calculated the exact annual salary needed to own a home in various Houston neighborhoods for 2017.
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No surprise here, but River Oaks remains the most expensive Houston neighborhood to live in, with homes averaging in the $1.95 million range. In order to afford a home in this prestigious ‘hood, you’d have to make over $515,646 annually. No big deal, right?
To see the annual salary needed to live in various Houston-area neighborhoods, go through the photos above. All of the images were provided through our partnership with HAR.com.
To calculate the salary needed to own a home in select local neighborhoods, Martin and her team took into consideration a 20 percent down payment on a 30-year mortgage, 3.8 percent interest rate, Texas’ property tax rates and insurance costs. With this, the numbers were then crunched in an online Mortgage Calculator.
Martin and her team stuck with the 28 percent rule, which theorizes that the homeowner would spend no more than 28 percent of their annual salary on their home costs.
The annual home prices for each neighborhood were calculated by HAR data from Jan. 1 to Dec. 31, 2017.
To read the full report produced by Martin and her team, visit her website here.