To afford a median-priced home in Philadelphia, an annual income of approximately $82,447 is needed.
Understanding Home Affordability in Philadelphia
The income required to purchase a home is calculated based on the ability to afford the mortgage payments, property taxes, and insurance for a median-priced house. This specific income threshold helps potential homebuyers understand the financial commitment involved in the Philadelphia housing market.
Here's a comparison of key housing affordability metrics for the Philadelphia-Delaware County region versus the national average:
| Metric | Philadelphia-Delaware County | Nation |
|---|---|---|
| Income needed to afford median priced home | $82,447 | $115,454 |
| Median home sale price | $300,000 | $433,101 |
| Median estimated household income | $72,742 | $83,853 |
| Share of income needed to afford typical home | 34.0% | 41.3% |
Key Insights for Philadelphia Homebuyers:
- Required Income: The $82,447 figure indicates the annual income generally considered necessary to comfortably afford a home priced at the median in Philadelphia. This calculation considers typical housing expenses to ensure that homeownership is financially sustainable without unduly straining a household's budget.
- Median Home Price: The median home sale price in the Philadelphia-Delaware County area stands at $300,000. This value represents the midpoint of all home sales, meaning half of the homes sold in the region were priced below this amount, and half were above it.
- Affordability Relative to Local Income: While the median estimated household income in the Philadelphia region is $72,742, the income needed to afford a median-priced home is higher. This suggests that for many households in the area, securing a median-priced home may require either a higher income or careful financial planning.
- Regional vs. National Affordability: Philadelphia demonstrates a more favorable affordability landscape compared to the national average. The income required to afford a home in Philadelphia is significantly lower than the national figure of $115,454, and the median home price of $300,000 is also considerably less than the national median of $433,101. Furthermore, the share of income needed to afford a typical home is 34.0% in Philadelphia, which is notably lower than the national average of 41.3%, indicating better relative housing affordability in the region.
Understanding these detailed figures can help potential homebuyers in Philadelphia assess their financial readiness and plan effectively for purchasing a home.
