As home prices and interest rates rise، would-be homebuyers need a salary of $114،627 to afford a median-priced house in the U.S.، according to a recent report by real estate site Redfin.

If you want to buy in one of the most expensive metro areas of the U.S.، you’ll need to earn even more. In the top 10 cities، you’ll need to earn more than $200،000، or close to it، researchers estimate. Buying in the priciest two metros would require salaries of more than $400،000. Redfin analyzed median monthly mortgage payments in August 2023 and August 2022.

To put those figures into perspective، the median U.S. household income was $75،000 in 2022، according to the report. 

San Francisco and San Jose، California، are the top two metros that require the highest salaries، of $404،332 and $402،287، respectively، according to Redfin.

The most expensive markets

“The Bay Area has consistently been one of the most expensive markets in the country،” said Daryl Fairweather، chief economist at Redfin.

Three more California metros — Anaheim، Oakland and San Diego — round out the top five، requiring interested buyers to earn between $240،000 and $300،000 annually.

The median income in these cities is high، but so are real estate prices. Higher interest rates have increased the cost to borrow، so buyers will need to show significant income to get a mortgage.

While the borough of Manhattan in New York may have the highest cost of living among U.S. cities، according to the Council for Community and Economic Research’s Cost of Living Index، the New York metro area as a whole ranks ninth on Redfin’s list.

That’s because the metro area goes beyond Manhattan and the city’s four other boroughs، extending into nearby counties. 

“Even though Manhattan is really expensive، once you get to the outlying areas [in] the New York metro area، it actually becomes quite affordable،” said Fairweather.