Rising Housing Costs in the U.S.: Income Needed to Buy a Home

Access to housing in the United States has become increasingly challenging, particularly in major metropolitan areas where housing costs have outpaced wage growth. A recent analysis examined the income required to purchase a home in 50 cities, revealing significant cost disparities across the nation.

The Increasing Cost of Homeownership

With the average income around $106,700 per year, the real estate market presents a substantial financial hurdle for many Americans. The income needed to comfortably afford a home varies dramatically depending on location.

Most Expensive Cities

San Jose, California, currently stands as the most expensive city to purchase a home, requiring an annual salary of approximately $458,500. San Francisco follows closely behind, with a required income of $321,500, and San Diego at $235,300.

Novel York and Los Angeles

Surprisingly, New York City is not the most expensive city in the U.S. To purchase a home in New York, an annual salary of around $200,300 is needed. Los Angeles, California, is slightly more expensive, requiring an annual income of $224,000.

Regional Disparities

These figures highlight the high demand, limited housing supply, and elevated cost of living in California. Conversely, cities in the Midwest and South offer significantly lower barriers to entry. Pittsburgh, Pennsylvania, requires an average annual income of $64,100; Cleveland, Ohio, $66,300; and Oklahoma City, $71,600.

Economic Factors and Inequality

The substantial cost of accessing housing underscores the growing economic inequality within the United States. Competitive markets like San Jose and San Francisco demand incomes far above the national average, while other regions offer more attainable homeownership opportunities. These differences reflect local economic dynamics, supply and demand, and the concentration of high-paying jobs in specific areas.

Current Mortgage Rates

As of March 20, 2026, HSBC Bank USA offers the following conforming mortgage rates:

• 30 Year Fixed Rate: 6.375% (APR 6.436%)
• 15 Year Fixed Rate: 5.625% (APR 5.724%)

These rates are based on the purchase of a single-family, primary residence, an 80% loan-to-value (LTV), a credit score of 740, 15 days of prepaid interest, and a 60-day rate lock period. Rates are currently available in select counties in New York (Bronx, Kings, New York, Orange, Queens, Richmond, Rockland, Westchester, Nassau, Suffolk, and Erie). For rates in other areas, call 866.427.2101. HSBC Bank USA

You can find more information on mortgage rates at HSH.com and Bankrate.