You’ll Need To Earn $400K or More To Afford Homes in These 15 ZIP Codes

Home prices are rising at a faster pace than wages, making it difficult for the average income earner to afford a home. In some ZIP codes, the discrepancy between earnings and home prices is even higher — and in these 15 ZIP codes, you would need to earn a salary of $400,000 or higher to afford the average home.

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GOBankingRates determined the ZIP codes that require prospective homebuyers to earn $400,000 or more by analyzing the 2,500 largest ZIP codes in the U.S. along with the average home value. Once this figure was found, GOBankingRates found the monthly mortgage payment for each ZIP code by assuming a 30-year fixed-rate loan with a 6.62% interest rate. From there, GOBankingRates found the ZIP codes where one would need a six-figure salary to comfortably afford the mortgage payment, defined as no more than 30% of gross income going towards the mortgage payment. If a city had multiple ZIP codes qualify, only the three most expensive were included in the final rankings.

Here’s a look at the ZIP codes that only high income-earners could afford.

New York City skyline at sunset with Brooklyn Bridge and Lower Manhattan.

1. New York (10021) — Upper East Side, Manhattan

  • Average home value: $3,289,757
  • Monthly mortgage payment: $16,843
  • Salary needed: $673,722

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San Mateo California

2. Hillsborough, California (94010)

  • Average home value: $3,263,479
  • Monthly mortgage payment: $16,709
  • Salary needed: $668,340

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New York City skyline with Empire State building at sunset

3. New York (11201) — Brooklyn Heights, Brooklyn

  • Average home value: $3,178,598
  • Monthly mortgage payment: $16,274
  • Salary needed: $650,957
Staten Island Ferry approaching New York City skyline

4. New York (10011) — Chelsea, Manhattan

  • Average home value: $2,940,281
  • Monthly mortgage payment: $15,054
  • Salary needed: $602,151
the skyline of los angeles during sunset.

5. Los Angeles (90024) — West LA

  • Average home value: $2,717,587
  • Monthly mortgage payment: $13,914
  • Salary needed: $556,545
Aerial: Sandhill Road, home of the venture capital firms, in Menlo Park, Silicon Valley.

6. Menlo Park, California (94025)

  • Average home value: $2,648,721
  • Monthly mortgage payment: $13,561
  • Salary needed: $542,441

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Cupertino California

7. Cupertino, California (95014)

  • Average home value: $2,617,860
  • Monthly mortgage payment: $13,403
  • Salary needed: $536,121
Financial district of San Francisco at sunrise.

8. San Francisco (94118)

  • Average home value: $2,322,940
  • Monthly mortgage payment: $11,893
  • Salary needed: $475,724
October 29, 2018 Sunnyvale / CA / USA - Urban landscape with newly developed residential buildings in downtown Sunnyvale, south San Francisco bay area, California;.

9. Sunnyvale, California (94087)

  • Average home value: $2,322,521
  • Monthly mortgage payment: $11,891
  • Salary needed: $475,638
View of the Golden Gate Bridge, in Golden Gate National Recreation Area, in San Francisco, California.

10. San Francisco (94117)

  • Average home value: $2,305,852
  • Monthly mortgage payment: $11,806
  • Salary needed: $472,224
Downtown San Jose skyline with palm trees at night.

11. San Jose, California (95129)

  • Average home value: $2,225,564
  • Monthly mortgage payment: $11,395
  • Salary needed: $455,782

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East Palo Alto, Calif.

12. East Palo Alto, California (94303)

  • Average home value: $2,086,698
  • Monthly mortgage payment: $10,684
  • Salary needed: $427,343
Aerial view of a residential neighborhood on a sunny day, Fremont, east San Francisco bay area, California.

13. Fremont, California (94539)

  • Average home value: $2,012,687
  • Monthly mortgage payment: $10,305
  • Salary needed: $412,186
San Diego skyline during the day

14. San Diego (92130)

  • Average home value: $1,993,156
  • Monthly mortgage payment: $10,205
  • Salary needed: $408,186
Downtown San Jose, California

15. San Jose, California (95120)

  • Average home value: $1,957,501
  • Monthly mortgage payment: $10,022
  • Salary needed: $400,884

Photo disclaimer: Photos may not depict the exact ZIP code.

Methodology: For this piece, GOBankingRates found the 2,500 largest ZIP codes and the (1) 2023 average home value from Zillow’s November 2023 data. Once this figure was found GOBankingRates found the (2) monthly mortgage payment for each ZI{ code by assuming one is taking a 30-year fixed-rate loan with a 6.62% interest rate, as sourced from the Federal Reserve Bank of St. Louis on Jan. 4, 2024. From there, GOBankingRates found the 50 most expensive ZIP codes where one would need a six-figure salary to comfortably afford the mortgage payment (no more than 30% of gross income going towards the mortgage payment). If a city had multiple ZIP codes qualify, only the three most expensive were included in the final rankings. All data was collected and is up to date as of Jan. 8, 2024.

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This article originally appeared on GOBankingRates.com: You’ll Need To Earn $400K or More To Afford Homes in These 15 ZIP Codes

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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