Minimum Salary Around $100k to Afford a Home in LA

Using the National Association of Realtors’ data on housing affordability, Business Insider gathered a list of the US metro areas where the minimum salary required to qualify for a mortgage, after a 20 percent down payment, is highest. What they found was that the salary needed to qualify in the top-five metro areas — four of which are located in California — exceeds $100,000.

Here’s what it you need to be earning to buy in New York, Miami and Los Angeles.

The New York-Newark-Jersey City, New York/New Jersey/Pennsylvania metro areas ranked 13th overall in BI’s list. With a population of 20,182,305 and a median home cost of $414,000, the salary you need to buy is $76,613.

The Miami-Fort Lauderdale-West Palm Beach, Florida, metro area ranked down at number 20. With a much lower population of 6,012,331 and median home cost of $335,000 the salary a sunshine state buyer needs is $61,994.

Meanwhile in Los Angles-Long Beach-Glendale, California weighed in at number seven. The population is 10,170,292 and the median home cost was $514,000. That means that the salary you’ll needed to buy is $95,156.

If you were wondering about what metro area took the top spot, well, that would be San Jose-Sunnyvale-Santa Clara, California. The salary needed to buy there was calculated to be $218,996. 

TRD

Condo Prices Stay Stronger Than SFR Prices

As housing prices continue to climb, condo pricing is among the strongest, and where are the highest concentration of condos? DTLA of course. Condo prices in Downtown LA rose 2.4 percent in the first three months of this year, according to Douglas Elliman.

From January to March, condos in DTLA sold for a median price of $599,000, up from $585,000 in the same time period last year. And, the average DTLA condo spent 67 days on the market—a drop from 82 days in the first quarter of 2016.

There's a huge reason as to why. People are getting priced out of the SFR market, and condos often have a more affordable price point. For instance, a 1 bed condo in WEHO with nice amenities could cost you about $650k, while a 2+1 home will cost about 1.1k. The discrepancy is price is huge and you're not always getting a whole lot more for that upcharge.

In DTLA, you can snag a condo with nice views and parking and amenities like a pool, gym, lounge, concierge, for about $700k. You'd have to plunk down about $850 to get a semi-decent remodeled 2+2 in Highland Park, and you may not even have a garage.

The second reason is the upkeep. Condos are relatively headache free--just maintain your AC unit and keep the plumbing in good shape. While a house needs regular maintenance for the roof, basement, gutters, landscaping, etc, and this isn't for everyone.