What Salary Do You Need to Afford a Home in the Mid-Hudson Valley?

It may surprise you just how much money you need to make in order to afford a home in Dutchess, Orange or Ulster County.

Buying a home used to be the American dream, but for many young people today, it feels like something completely out of reach. Real estate prices have climbed much faster than salaries across New York state, and with 30-year fixed mortgage rates still hovering around 7%, the monthly payment on a house can stretch even the wealthiest person's budget.

Home Prices in the Hudson Valley

According to the New York State Department of Taxation and Finance, the median home prices in the Mid-Hudson Region are around $450,000. Dutchess is the most expensive at $460,000. Homes in Orange are around $450,000, while Ulster County homebuyers will find houses in the range of $425,000.

Prices in the lower Hudson Valley are even more expensive. The median price for a home in Putnam County is $530,000. Rockland County homes cost $745,000 and the average Westchester house costs over $800,000.

Can You Afford a Home in the Mid-Hudson Region?

Before you decide how much of a salary you need to afford the average home in the Mid-Hudson Region, you'll need to figure out how much of a down payment you'll be able to make.

According to the National Association of Realtors, the median down payment for first-time homebuyers is 9%. For a home that costs $450,000, that would work out to $40,500.

If you're able to save up the down payment and can secure a loan at the average rate right now of 6.75%, you'll also need to figure in the cost of property and school taxes, as well as homeowners' insurance. Those expenses will most likely be required by a lender to be put in escrow as an added expense to your monthly mortgage payment.

Most financial experts suggest that your monthly mortgage payment shouldn't exceed 28% of your gross monthly income, assuming you already don't have a large amount of debt. Your total debt, which adds in credit cards, student loans, car payments and other loans, shouldn't exceed 36% of your income.

What Salary Do You Need to Afford a Home in the Mid-Hudson Valley?

In order to afford a home in the Mid-Hudson Valley Region, you'll need to make a down payment of $40,500 and a monthly payment of $3,630, which includes principal, interest, property taxes and insurance.

Assuming you don't have any other debts, you'll need to earn an annual salary of $121,000 in order to make this happen.

According to the latest census data, the median income for residents in Orange and Ulster Counties stands at $97,000, with the average Ulster County worker making $81,000 a year. On paper, many working couples are still able to afford a home. However, factors like enough savings to make a down payment and the ability to pay down other debts need to be factored in.