20 ZIP Codes First-Time Homebuyers Can Afford
For anyone trying to get on the property ladder, the first challenge is figuring out if buying is even affordable, especially after years of renting. It's a major purchase, one of the biggest that most people will make, but many are having to wait longer and longer to take that step.
The median age of first-time homebuyers is now 40, according to data from the National Association of Realtors. That's compared to late 20s for first-time buyers in the 1980s. Finding that dream home is one thing; finding a mortgage that doesn't swallow a paycheck is quite another.
Check Out: 50 Best Places To Buy a Home for Under $250K
Read Next: 5 Signs You’re Losing Money Every Month — and How To Find the Leaks
To make sense of where buying can still be realistic, MovingPlace studied ZIP codes across the United States, looking at factors including the mortgage-to-income ratio, which shows how much of a typical monthly income goes toward a mortgage. Lower ratios mean more breathing room for everything else that comes with owning a home. The general recommendation is not to spend more than 30% of your income on your housing costs.
Here are 20 ZIP codes where renters looking to buy and other first-time buyers stand the best chance, ranked by mortgage-to-income ratio.
1. 30349 (Atlanta)
Average monthly mortgage payment: $1,460
Average monthly renter income: $5,820
Mortgage-to-income ratio: 25.1%
2. 75217 (Dallas)
Average monthly mortgage payment: $1,324
Average monthly renter income: $5,224
Mortgage-to-income ratio: 25.3%
3. 60617 (Chicago)
Average monthly mortgage payment: $1,230
Average monthly renter income: $4,689
Mortgage-to-income ratio: 26.2%
4. 37042 (Clarksville, Tennessee)
Average monthly mortgage payment: $1,485
Average monthly renter income: $5,025
Mortgage-to-income ratio: 29.6%
5. 60629 (Chicago)
Average monthly mortgage payment: $1,420
Average monthly renter income: $4,689
Mortgage-to-income ratio: 30.3%
6. 73099 (Yukon, Oklahoma)
Average monthly mortgage payment: $1,549
Average monthly renter income: $4,931
Mortgage-to-income ratio: 31.4%
7. 60623 (Chicago)
Average monthly mortgage payment: $1,480
Average monthly renter income: $4,689
Mortgage-to-income ratio: 31.6%
8. 78577 (Pharr, Texas)
Average monthly mortgage payment: $1,128
Average monthly renter income: $3,312
Mortgage-to-income ratio: 34.1%
9. 27610 (Raleigh, North Carolina)
Average monthly mortgage payment: $1,900
Average monthly renter income: $5,514
Mortgage-to-income ratio: 34.5%
10. 28269 (Charlotte, North Carolina)
Average monthly mortgage payment: $1,871
Average monthly renter income: $5,201
Mortgage-to-income ratio: 36.0%
11. 93535 (Lancaster, California)
Average monthly mortgage payment: $2,116
Average monthly renter income: $5,734
Mortgage-to-income ratio: 36.9%
12. 23464 (Virginia Beach, Virginia)
Average monthly mortgage payment: $2,054
Average monthly renter income: $5,452
Mortgage-to-income ratio: 37.7%
13. 95823 (Sacramento, California)
Average monthly mortgage payment: $2,080
Average monthly renter income: $5,512
Mortgage-to-income ratio: 37.7%
14. 93257 (Porterville, California)
Average monthly mortgage payment: $1,595
Average monthly renter income: $4,176
Mortgage-to-income ratio: 38.2%
15. 93307 (Bakersfield, California)
Average monthly mortgage payment: $1,563
Average monthly renter income: $4,065
Mortgage-to-income ratio: 38.4%
16. 93550 (Palmdale, California)
Average monthly mortgage payment: $2,205
Average monthly renter income: $5,734
Mortgage-to-income ratio: 38.5%
17. 37013 (Antioch, Tennessee)
Average monthly mortgage payment: $1,852
Average monthly renter income: $4,768
Mortgage-to-income ratio: 38.8%
18. 78130 (New Braunfels, Texas)
Average monthly mortgage payment: $2,118
Average monthly renter income: $5,428
Mortgage-to-income ratio: 39.0%
19. 99301 (Pasco, Washington)
Average monthly mortgage payment: $2,193
Average monthly renter income: $5,563
Mortgage-to-income ratio: 39.4%
20. 28027 (Concord, North Carolina)
Average monthly mortgage payment: $2,121
Average monthly renter income: $5,333
Mortgage-to-income ratio: 39.8%
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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