How Much Do You Need to Make to Afford a House in Texas?
With some concerned that another housing bubble is on the horizon, how much should you be making a year to properly afford a house in Texas?
When we say "properly afford", we're talking about the common belief among financial advisers that the cost of housing make up no more than 30% of your gross annual salary. Using that as a rule of thumb, the website How Much compiled the average house cost in each state, factoring in a 30-year mortgage, a 10% down payment, and 4-5% interest rates to determine the least amount a family would need to make in a year to afford a house in their state.
You'll definitely see some patterns, with the cost of housing rising the further west, and clumps of states all being in the same range as their neighbors. But there's also interesting jumps with the salary needed in Virginia being nearly twice the amount as needed in West Virginia.
The necessary salary in each state, from highest to lowest is...