Top 10 Cities with High Income Requirements for Homebuyers

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In the world of real estate, location is everything, and in some cities, even modest homes require buyers to have a high income. Realtor.com‘s analysis reveals that prospective homeowners need to earn over $150,000 to afford homes in 14 of the 50 largest metropolitan areas in the U.S. Let’s take a look at the top 10 cities with high income requirements.

Top Cities with High Income Requirements

1. San Jose, CA

Median Home List Price: $1,467,000
Median Household Income Required: $361,000

Top cities with high income requirements for homebuyers — San Jose, California

San Jose, the heart of Silicon Valley, tops the list, where tech giants like Google and Apple call home. This tech hub has a vibrant housing market, and homes are selling swiftly. “The San Jose metro is the hottest market in the Bay Area right now,” says Patrick Carlisle, Chief Market Analyst at Compass. Buyers here need to earn $361,000 to purchase a home.

2. Los Angeles, CA

Median Home List Price: $1,192,000
Median Household Income Required: $298,000

Los Angeles, known for its glamorous lifestyle and thriving entertainment industry, requires an income of nearly $300,000 to afford a median-priced home. High-paying jobs attract many to this city, driving up real estate prices.

3. San Diego, CA

Median Home List Price: $1,050,000
Median Household Income Required: $259,000

San Diego County Senior Housing Programtop cities with high income requirements — San Diego, California

San Diego, a city famous for its beaches and pleasant weather, requires buyers to earn at least $259,000 to purchase a home. The strong job market and limited housing supply have pushed the median home price past the $1 million mark.

4. San Francisco, CA

Median Home List Price: $1,027,000
Median Household Income Required: $256,000

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San Francisco is known for its stunning architecture and steep hills. However, buying a home requires a minimum income of $256,000. This city is also home to many tech companies and boasts strong job opportunities.

5. Boston, MA

Median Home List Price: $870,000
Median Household Income Required: $226,000

oston is using public buildings — like libraries — to build affordable housing. It's still pricey — Boston, Massachussetts

Boston, a historic city with prestigious universities and cutting-edge tech companies, requires homebuyers to earn over $226,000 to afford a home. Despite its old-world charm, it’s among the cities with the highest income requirements.

6. New York, NY

Median Home List Price: $769,000
Median Household Income Required: $218,000

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New York City, known for its bustling streets and vibrant lifestyle, requires an income of over $218,000 to purchase a median-priced home. High-paying finance and tech jobs draw many to the Big Apple.

7. Seattle, WA

Median Home List Price: $775,000
Median Household Income Required: $193,000

seattleTop cities with high income requirements for homebuyers — Seattle skyline

Seattle, famous for its coffee culture and tech scene, has seen a surge in housing prices due to tech giants like Amazon and Microsoft. Buyers need to earn around $193,000 to afford a home here.

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8. Denver, CO

Median Home List Price: $655,000
Median Household Income Required: $161,000

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Denver, with its breathtaking mountain views and booming economy, requires homebuyers to earn over $161,000. The housing market remains competitive due to a high quality of life and job opportunities.

9. Sacramento, CA

Median Home List Price: $650,000
Median Household Income Required: $162,000

Sacramento, California’s state capital, offers a more affordable alternative to Bay Area cities. However, buyers still need to earn $162,000 to afford a median-priced home.

10. Washington, DC

Median Home List Price: $625,000
Median Household Income Required: $159,000

Washington, D.C., the nation’s capital, requires buyers to earn over $159,000 to afford a home. High-paying government and private sector jobs contribute to the competitive housing market.

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High income requirements are a reality for homebuyers in these cities due to high-paying jobs, desirable lifestyles, and limited housing supply. Prospective buyers must prepare for stiff competition and high price tags, especially in tech hubs like San Jose and Seattle or cultural centers like New York and Boston.