10 Cities Where It’s Easiest for New Homeowners To Pay Off Their Mortgage

A good financial rule of thumb is to dedicate no more than 30% of your income to housing, but this can be a challenge as home prices rise and mortgage payments increase. However, there are some cities where the median household can easily afford the median mortgage payments for the area.

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To find the cities where it’s easiest to pay off a home, SmartAsset analyzed mortgage data from last year for the 40 largest U.S. metro areas. The study determined the median principal and interest payments on a 30-year fixed-rate mortgage, which was then compared to the median income of new homeowners.

Here’s a look at the 10 cities where it’s easiest for new homeowners to afford their mortgage payments.

Pittsburgh

• Housing payments as a percent of gross pay: 16.4%
• Monthly principal and interest payment: $1,377
• Median annual income of new homeowners: $101,000
• Median property value: $265,000

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Houston

• Housing payments as a percent of gross pay: 17.1%
• Monthly principal and interest payment: $1,894
• Median annual income of new homeowners: $133,000
• Median property value: $365,000

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Detroit

• Housing payments as a percent of gross pay: 17.5%
• Monthly principal and interest payment: $1,228
• Median annual income of new homeowners: $84,000
• Median property value: $225,000

Cleveland

• Housing payments as a percent of gross pay: 17.6%
• Monthly principal and interest payment: $1,408
• Median annual income of new homeowners: $96,000
• Median property value: $265,000

San Antonio

• Housing payments as a percent of gross pay: 17.7%
• Monthly principal and interest payment: $1,723
• Median annual income of new homeowners: $117,000
• Median property value: $345,000

St. Louis

• Housing payments as a percent of gross pay: 17.9%
• Monthly principal and interest payment: $1,570
• Median annual income of new homeowners: $105,000
• Median property value: $295,000

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Milwaukee

• Housing payments as a percent of gross pay: 18%
• Monthly principal and interest payment: $1,678
• Median annual income of new homeowners: $112,000
• Median property value: $345,000

Philadelphia

• Housing payments as a percent of gross pay: 18.5%
• Monthly principal and interest payment: $1,570
• Median annual income of new homeowners: $102,000
• Median property value: $315,000

Cincinnati

• Housing payments as a percent of gross pay: 18.7%
• Monthly principal and interest payment: $1,623
• Median annual income of new homeowners: $104,000
• Median property value: $305,000

Austin, Texas

• Housing payments as a percent of gross pay: 19.1%
• Monthly principal and interest payment: $2,549
• Median annual income of new homeowners: $160,000
• Median property value: $505,000

Data is sourced from SmartAsset and is accurate as of Sept. 24, 2024.

This article originally appeared on GOBankingRates.com : 10 Cities Where It’s Easiest for New Homeowners To Pay Off Their Mortgage