This spring, the National Association of Home Builders (NAHB) released its 2021 Priced-Out Estimates.
The house price in the pyramid below takes into account that the sum of mortgage payments, property taxes, homeowners, and private mortgage insurance premiums should be no more than 28% of the household income. Based on this, the minimum income required to purchase a $100,000 home is $22,505.
The report also shows that in Minnesota, the household income needed to qualify for a median priced new home is $85,700. Based on those numbers, there are just under 1 Million (949,205) households in Minnesota that can afford a median-priced home.
You can read NAHB’s full report here.
Minnesota Realtors® is committed to making homeownership possible for everyone. That is why we’ve partnered with the Minnesota Homeownership Center to launch the Downpayment Assistance Research Project. Based on findings from the Rosen Consulting Group’s Research Report, 110,000 Minnesota renters could afford to purchase a median-priced home with downpayment assistance of $10,500 or less. You can read more about this important research and where to go for more information on downpayment assistance here.