Home affordability affected by location and salary
Posted on Sunday, October 11, 2015 at 5:53:58 PM
Home affordability is affected by more than prices, according to recent research - occupations and locations factor heavily into how affordable houses may or may not be.
A Zillow study found that an individual's occupation can play a significant role in where he or she may be able to afford a home, and where housing may be too expensive. For example, the online real estate database discovered that a teacher will find more homes that he or she can afford in Los Angeles, San Francisco or Boston than in Salt Lake City or Portland, Ore. Additionally, construction workers hunting for a home in Portland will find less than 10 percent of listed homes are within their budgets. However, almost two-third of those listed in Buffalo, N.Y. would fall within construction workers' budgets.
"There's a lot more to home buying affordability than just the cost of the home. Incomes vary a lot across the country - even within the same occupation," Dr. Svenja Gudell, Zillow chief economist, said. "There's also the question of how much of your paycheck you're willing to put toward a house payment, and finally, whether you can find a home in your price range."
Individuals seeking residential financing may want to take occupation and location into consideration, as they may be able to increase their budgets by working the same job in a different region.