Methodology
GOBankingRates analyzed cities with populations between 5,000 and 100,000, identifying those with the highest average household income and typical 2024 home values. It then calculated the minimum salary needed to afford a home, assuming no more than 30% of pre-tax income is spent on housing and using a 30-year fixed mortgage rate of 6.35%. The calculation excludes P&I, HOA fees, and property taxes.
$2.3M Salary to Afford a Home in Palm Beach
Palm Beach, Florida, tops the list, requiring an annual salary of $2,308,328 to afford a home. It is the only city where buyers must earn over $2 million to purchase a property.
| Rank | Town | State | Average Household Income | Salary Needed to Afford a House |
|---|---|---|---|---|
| 1 | Palm Beach | Florida | $366K | $2.3M |
| 2 | Atherton | California | $595K | $1.5M |
| 3 | Los Altos Hills | California | $460K | $1.1M |
| 4 | Montecito | California | $327K | $1.1M |
| 5 | Hillsborough | California | $540K | $1.0M |
| 6 | Los Altos | California | $401K | $851K |
| 7 | Saratoga | California | $329K | $771K |
| 8 | Woodside | California | $446K | $728K |
| 9 | Paradise Valley | Arizona | $386K | $683K |
| 10 | Tiburon | California | $312K | $662K |
Buyers need to earn at least $1 million annually to afford homes in four California cities: Atherton, Los Altos Hills, Montecito, and Hillsborough.
In general, the Golden State tops the list, with eight towns located in the state. The only two outlier states are the aforementioned Florida (Palm Beach), as well as Arizona (Paradise Valley).
Credit: Visual Capitalist
