How Much You Need To Make To Afford The Average House In Buffalo, New York
There is no doubt that Buffalo is experiencing a renaissance on the housing front.
For the last couple of years, Western New York has had the honor of having the hottest housing market in the nation. Multiple surveys have been released that rank Buffalo at the top in the entire country. This, of course, is great news for sellers and real estate investors.
However, that means things are getting tougher for those looking to buy a house. While there are tons of great first-time homebuyer programs all over the 716 to help you buy a home, there are some real things to consider when the housing market is red-hot.
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With home prices going up every year, one of the primary things to make sure you're paying attention to is exactly how much house you can afford.
How Much Does The Average House In WNY Cost?
Housing prices have been going up like crazy lately. When you take a look at the data, it's hard to believe that over the last ten years, the average Western New York house has increased in price by nearly double.
According to data from the Buffalo Niagara Association of REALTORS, the average Buffalo home sold for $143,729 in 2014. As of May 2024, that same Buffalo area home costs $286,390.
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The Federal Housing Finance Agency says the average home value increased around 4% year-over-year, so over ten years, a house would increase by around 40%. In Buffalo, prices have increased by 100%, making things a little tighter when it comes to affordability since incomes haven't gone by 100% like home prices.
Exactly How Much Money Do You Need To Make To Buy The Average Buffalo Area House?
If you're in the market to buy the average Buffalo house, you need to make sure you have a solid income to be able to afford it.
Looking at current interest rates for a 30-year mortgage, which is sitting around 6.86% according to the Primary Mortgage Market Survey, buying a house with a sales price of $286,390 would mean you would have a monthly mortgage payment of around $2,312 (this amount includes estimated insurance and taxes in Buffalo).
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Using the 28/36 Rule, which says your mortgage payment should be no more than 28% of your gross monthly income, you need to make at least $7,000 per month to afford this house.
That equals more than $83,000 per year. In an area where the median household income is $68,014, it's becoming increasingly more difficult for the average Western New Yorker to buy the average house.
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Gallery Credit: Ed Nice
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Gallery Credit: Ed Nice