Tag Archives: house prices

How much house can I afford to buy?


The article at the link below from MSN.com suggests that one can comfortably buy a house priced up to 6 times their annual salary!

http://realestate.msn.com/what-you-must-earn-to-buy-a-home-in-25-cities-in-2013#10

Good luck using that ball-park figure! It perpetuates the current debt problem haunting today’s U.S. families.

Conventional wisdom for at least a generation (1964ish – 1994ish) was that a home should cost no more than 3 times one’s salary.

One might cite low interest rates as justification for the new 6X figure. But I know I’ve got all I can handle in a house valued at just 2.5 times my salary.

(A parenthetical side benefit to owning a smaller house is the time saved in vacuuming.)

© 2013, Dr. Phil Bryant

  Dr. Bryant is an Assistant Professor of Management at Columbus State University and co-author of Managing Employee Turnover.

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