Out of the 27 metro areas analyzed, HSH.com ranked Detroit as the fifth U.S. city with the lowest salary required to buy a home.
In their study, HSH.com reported that with a median home price of $164,200, the salary needed to own a home in the Detroit metro area is $38,541.83. If homebuyers were to put down 10 percent instead of 20 percent, the required salary would jump to $44,135. These numbers reflect the base cost of owning a home, which includes the principal, interest, taxes, and insurance.
The median home price for the Detroit metro area has grown 15.61 percent quarter-by-quarter and 7.43 percent year-over-year, reported HSH.com.
In their study, HSH.com analyzed data from the National Association of Realtors’ (NAR) 2016 second-quarter data for median-home prices and HSH.com’s 2016 second-quarter average interest rate for 30-year fixed-rate mortgages. A standard 28 percent "front-end" debt ratios and a 20 percent down payment were subtracted from the NAR’s median-home-price data.