10 Cities Where It’s Hardest for New Homeowners To Pay Off Their Mortgages

Buying a new home can be a big expense, and if you take out a 30-year loan, it’s one you have to budget for for decades.

How much of your budget you will need to set aside for housing costs will vary greatly depending on where you live. In some major cities, making the monthly mortgage payments on a median-priced home can take a significant portion of the local median income for a new homebuyer.

To find the cities where it’s easiest — and hardest — for new homeowners to pay off their homes, SmartAsset analyzed mortgage data for 2023 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 hardest for new homeowners to afford their mortgage payments — six are all in one state.

On the flip side, here are 10 cities where it’s easier for new homeowners to pay off their mortgages.

• Housing payments as a percent of gross pay: 29.2%
• Monthly principal and interest payment: $6,588
• Median annual income of new homeowners: $271,000
• Median property value: $1,475,000

• Housing payments as a percent of gross pay: 28.6%
• Monthly principal and interest payment: $4,284
• Median annual income of new homeowners: $180,000
• Median property value: $905,000

• Housing payments as a percent of gross pay: 28.4%
• Monthly principal and interest payment: $4,192
• Median annual income of new homeowners: $177,000
• Median property value: $905,000

• Housing payments as a percent of gross pay: 27.2%
• Monthly principal and interest payment: $6,401
• Median annual income of new homeowners: $282,000
• Median property value: $1,505,000

• Housing payments as a percent of gross pay: 26.9%
• Monthly principal and interest payment: $3,030
• Median annual income of new homeowners: $135,000
• Median property value: $605,000

• Housing payments as a percent of gross pay: 26%
• Monthly principal and interest payment: $2,942
• Median annual income of new homeowners: $136,000
• Median property value: $575,000

• Housing payments as a percent of gross pay: 25.8%
• Monthly principal and interest payment: $3,069
• Median annual income of new homeowners: $143,000
• Median property value: $615,000

• Housing payments as a percent of gross pay: 25.7%
• Monthly principal and interest payment: $3,818
• Median annual income of new homeowners: $178,000
• Median property value: $815,000

• Housing payments as a percent of gross pay: 25.1%
• Monthly principal and interest payment: $3,016
• Median annual income of new homeowners: $144,000
• Median property value: $605,000

• Housing payments as a percent of gross pay: 25.1%
• Monthly principal and interest payment: $2,359
• Median annual income of new homeowners: $113,000
• Median property value: $455,000

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