Here’s How Much You Need To Make To Afford a Home in the South

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It is taking much more money to afford a home as late, largely due to a confluence of factors such as high mortgage rates, lack of inventory and high prices. And now, home buyers will need to earn even more than they did a year ago to be able to afford a home.

To put this into context, on Feb. 14 the 30-year fixed mortgage rate was up to 6.87%, the highest rate since early December 2023 — and up from 6.8% the previous week — according to the Mortgage Bankers Association.

In fact, a recent Redfin report noted that the typical buyer needs to earn 15% more than they did a year ago, while wages are only up 5%. Indeed, homebuyers must earn $114,627 to afford the median-priced U.S. home, up 15% ($15,285) from a year ago — and up more than 50% since the start of the pandemic, according to Redfin.

Mortage Payments Reach All-Time High

And when it comes to mortgages, the typical U.S. homebuyer’s monthly mortgage payment is $2,866, an all-time high — and a whopping 20% increase from $2,395 a year earlier, Redfin further noted.

Not surprisingly, prices vary throughout the country. For instance, in the South, if you want to be able to afford a home in Miami, you’ll need an annual income of $143,187. In that city, the year-over-year change in annual income required to afford a median-priced home increased by an eye-popping 33.4%, according to Redfin.

Here is the salary you need to afford an average home in these Southern U.S. cities.

Little Rock, Arkansas

• Annual income required to afford median-priced home: $62,729
• Year-over-year change, annual income required to afford median-priced home: +13.9%
• Median monthly mortgage payment: $1,568

Memphis, Tennessee

• Annual income required to afford median-priced home: $79,094
• Year-over-year change, annual income required to afford median-priced home: +16.3%
• Median monthly mortgage payment: $1,977

Nashville, Tennessee

• Annual income required to afford median-priced home: $124,095
• Year-over-year change, annual income required to afford median-priced home: +19%
• Median monthly mortgage payment: $3,102

New Orleans, Louisiana

• Annual income required to afford median-priced home: $75,003
• Year-over-year change, annual income required to afford median-priced home: +15.1%
• Median monthly mortgage payment: $1,875

Richmond, Virginia

• Annual income required to afford median-priced home: $102,276
• Year-over-year change, annual income required to afford median-priced home: +24.6%
• Median monthly mortgage payment: $2,557

Raleigh, North Carolina

• Annual income required to afford median-priced home: $120,004
• Year-over-year change, annual income required to afford median-priced home: +17.4%
• Median monthly mortgage payment: $3,000

West Palm Beach, Florida

• Annual income required to afford median-priced home: $125,459
• Year-over-year change, annual income required to afford median-priced home: +24.4%
• Median monthly mortgage payment: $3,136

Atlanta, Georgia

• Annual income required to afford median-priced home: $107,731
• Year-over-year change,annual income required to afford median-priced home: +19.4%
• Median monthly mortgage payment: $2,693

Austin, Texas

• Annual income required to afford median-priced home: $126,208
• Year-over-year change, annual income required to afford median-priced home: +7.7%
• Median monthly mortgage payment: $3,155

Charleston, South Carolina

• Annual income required to afford median-priced home: $112,231
• Year-over-year change, annual income required to afford median-priced home: +17.9%
• Median monthly mortgage payment: $2,806

Louisville, Kentucky

• Annual income required to afford median-priced home: $73,612
• Year-over-year change, annual income required to afford median-priced home: +20.8%
• Median monthly mortgage payment: $1,840

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