This is the salary you need to afford a home in Minnesota

Twin Cities housing market: Investors buying up fewer homes

The housing market in the Twin Cities has started to cool. Investors bought about 12% of Twin Cities homes on the market in early 2022, but now they're buying fewer homes.

(FOX 9) - The salary need to buy a home in Minnesota is slightly less than the national average, according to a new report.

Visual Capitalist used data from Home Sweet Home to analyze the salary one needs to earn in order to buy a home in America's 50 biggest metros.

According to the data, the median home price in the U.S. is around $370,000. That means the average person would need to earn around $76,000 to consider comfortably purchasing a home in the U.S. — and the median national household income falls $9,000 below that, at $67,500.

Housing prices in Minnesota — the Twin Cities metro specifically — are just under the median home price nationally, coming in at $355,800. It's right in the middle of the pack, at No. 25 on Visual Capitalist's list of 50 metro areas.

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In the Twin Cities, Visual Capitalist says you need a salary of $74,145 to afford a home.

According to the Minnesota Department of Employment and Economic Development, the average weekly salary in Minnesota in the first quarter of 2022 was $1,376, which totals nearly $71,552 annually (assuming people are working year-round). Looking at Hennepin County, the average weekly wage was $1,788 in the first quarter, which equates to $92,976 — the highest of any Minnesota county. In Ramsey County, the average weekly wage was $1,456, which is $75,712.

The most expensive metro area in the country is San Jose, where a person would need to earn more than $330,000 annually to pay off a mortgage at a monthly rate of $7,718.

Here are the top five on the list:

San Jose: $330,758 annual salary needed; median home price of $1.8 million
San Francisco: $249,685 annual salary needed; median home price of $1.38 million
San Diego: $166,828 annual salary needed; median home price of $905,000
Los Angeles: $149,127 annual salary needed; median home price of $792,500
Seattle: $140,768 annual salary needed; median home price of $746,200

According to the data, people living in Milwaukee, Wisconsin, need to make $66,000 annually to afford to buy a home, while people in Chicago, need to make $76,500 to buy a house.

You can see where other cities rank here.