Buying a home in Cleveland? The income you need to comfortably afford it: Zillow

***Video above: Richest cities in Ohio.***

CLEVELAND (WJW) – Are you on the lookout for your dream home? Experts point out that housing prices have gone up dramatically in recent years and that’s no different here in Cleveland.

According to analysts from Zillow, as of January 2024, the average household in Cleveland would need to make about $70,800 a year to comfortably afford their mortgage.

That’s more than $30,000 a year more than what was needed in the city four years ago, Zillow says.

In Cleveland, which is reportedly among the most affordable metro areas to live in, the average monthly mortgage with a 10% down payment is roughly $1,351. It would also take six years to save up that down payment, according to Zillow.

Zillow analysts say, on average, the income needed to afford a home in the U.S. has gone up 80% since 2020.

They say a household making $59,000 a year could comfortably afford their monthly mortgage for an average home in 2020.

Now, the real-estate company concluded you need to make $106,500 a year, which is more than $25,000 above the average household income.

According to Zillow, home values have gone up about 42% since January 2020, with the average U.S. home being worth about $343,000.

The study also says mortgage rates (with a 10% down payment) were roughly 3.5% at the end of January 2020. Mortgage rates are now about 6.6%, the study says.

“Housing costs have soared over the past four years as drastic hikes in home prices, mortgage rates and rent growth far outpaced wage gains,” Zillow senior economist Orphe Divounguy said in a press release. “Mortgage rates easing down has helped some, but the key to improving affordability long term is to build more homes.”

Zillow says people are now more likely to join together with friends or family when buying a home.

Some of the most expensive metro areas listed are on the west coast. According to Zillow, San Jose homeowners would need a $454,000 annual income and San Francisco homeowners would need a $339,000 annual income. Learn more about the study here.