What income do Indianapolis homebuyers need to buy a home? It keeps going up.
Joe MutascioThis has been a challenging year for anyone trying to buy a home, especially their first, as inflation and skyrocketing interest rates priced out many hopeful homebuyers.
A period of frantic buying that saw homes sold for eye-popping sums nearly as fast as they were listed has turned into a largely stagnant market with limited homes for sale.
Current homeowners largely aren't selling, choosing to remain in place to avoid losing their low-interest rates, while inflation is also shrinking the budgets of many buyers.
We took a look at the local market, thanks to recent data from real estate tracking site Redfin.
Here's what we found.
How much do you need to make to afford a home in Indianapolis?
The annual income required to afford a median-priced home in Indy is $81,794, according to Redfin. That is up 23.7% since last year.
For comparison, that places Indy 24th on the list of 100 markets, just below other Midwest cities like Milwaukee at 30th ($87,548) and Chicago at 38th ($91,367). Memphis came in just a bit higher on the list at 23rd ($79,094).
Nationally, Detroit required the lowest income at just $51,793 while San Francisco residents need to earn the most at a whopping $404,332.
Median home prices in Indianapolis
The current median home sale price in Indianapolis is $299,900, Redfin says, landing in a similar spot in the national rankings as median income required. Less expensive nearby cities on the list include Cincinnati ($285,000), Louisville ($269,900) and several smaller cities in Ohio and Michigan.
San Francisco's median home price is again staggering, coming in at $1.48M, as the seven highest are all in California.
The five lowest median home prices are Detroit, Akron, Dayton, Cleveland, and Little Rock.
October real estate:See inside $500K homes in five different Indiana cities
How much is a mortgage in Indianapolis?
The median monthly mortgage here is sitting at $2,045, again in the lower third of the list sandwiched between Memphis ($1,977) and Warren, Mich. ($2,064).
Detroit homeowners are paying the least at ($1,295) while San Francisco residents are paying a median mortgage just over $10,000.
Closing costs:How much you pay to buy or sell a home may be about to change. Here's what you need to know
It's getting more expensive
One thing Indianapolis home buyers know is that it's gotten much more expensive to buy a home this year. But how do we compare nationally?
The year-over-year change in annual income required to buy a home in Indy is up 23.7%, higher than 67 other cities on the list.
Austin, Texas, leads the list with the lowest increase at just 7.7%, due in part to their already high prices with a median home-sale price of $462,748.
A surprising spot led the country with the highest increase in income needed to buy, Newark, New Jersey, where Redfin says buyers will need 33.4% more income this year compared to 2022.