A study released last week has some good news for people who are looking to buy a new home. Point2 Homes, a website that examine real estate trends, created a list that outlines the average time it takes to pay off a home in 50 of the most-populated cities in the nation.
Median home sale prices and the medium annual income was looked at during the study to find the affordability of purchasing a home in each state. According to the study, the higher the ratio of sale prices to income, the longer it takes to pay off a home.
Vancouver was found to have the most unaffordable real estate market, beating out popular U.S. cities. The study looked at all North America.
The median home sale price in Vancouver was found to be over $1.1 million, with a median income of just under $64,000. In Phoenix, the median home sale price was found to be about $242,000 with a median income of $48,500.
The study found that in cities such as Vancouver, it might take a home owner 17 years to pay of their mortgage using their entire income. However, in Phoenix it would only take five years.
Other cities such as Detroit, it was found that a median home price of just $48,000 and income of close to $26,000, it is estimated to take just 1.8 years to pay off a home.