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3x annual salary rule of thumb for house.. it can be totally within their means to buy a $1.5M home on a $240k salary. You don’t need to spend 3x as much on food, gas, cars, clothes, travel, etc when you make $240k as when you make $80k, so that extra money can be preferentially dedicated to.

The median home price: $7,354 These are three very important metrics when it comes to measuring purchasing power in the United States. Since we consider having a car and a home as cornerstones to a middle class lifestyle, it is useful to look at these figures since we can easily grab these figures from reliable sources.

The price of goods and services vary from one city to another, calculating the cost of living will help you determine how much more or less you need to make and help you factor in expenses. The expenses that go in to determining cost of living include housing prices for renters or homeowners, housing affordability, entertainment costs.

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A home for sale in metro Sacramento, where the median home costs the equivalent of 5.9 years of the median household income rich pedroncelli/ap Where the House-Price-to-Income Ratio Is Most Out of. A new analysis by SmartAsset, the personal finance and technology website, shows it would take an annual salary of $48,384 to comfortably afford.

A traditional measure of home affordability is for the price to be no more than three times your gross household income. Here, you can see which cities are close to this threshold and which are.

Use Salary.com’s Cost of Living Calculator to easily compare the cost of living in your current location to the cost of living in a new location. We use the Consumer Price Index (CPI) and salary differentials of over 300+ US cities to give you a comparison of costs and salary. Let us help you make an informed decision about what it will cost to live and work in the city of your dreams!