Buying a home in full cash is a pretty bold move to begin with. For many, it is nearly impossible, especially when you look at some of the most expensive cities in the United States. Most people take on mortgage loans when they purchase a home, though if you are someone who is looking to buy a home with all cash, you’ll probably want to know some of the most expensive places to do so.
Though New York is at the top of the national sales price record for the past year, San Francisco still holds the title for the most expensive city in the United States. If you check out the recent PropertyClub study that went up, you’ll see that New York didn’t even make the top ten list of the “longest to save” places. San Francisco sits at the top.
The Social Security Administration reports the median national income at $52,145.80. For an average studio apartment in San Francisco, you can expect to pay around $880,000. This means it would take more than 50 years on saving 30% of your income per month to afford a house in San Francisco.
Other Expensive Cities
Beyond San Francisco, the next four cities that take the longest to save up for a home in include Boston (32 years), San Jose (32 years), Oakland (31 years), and Los Angeles (30 years).
Of course, when it comes to the record-breaking, most-expensive home of all, the title still goes to New York. Ken Griffin recently purchase a penthouse in Central Park South for a record-breaking $238 million. This is the most that anyone has paid for a home in the United States ever.
When you look at record-breaking San Francisco sales, the most expensive home was a home on Broadway in Pacific Heights that sold for $39 million.
Comparing To Mortgage Buying
Let’s look at buying a single-family home in San Francisco.
On average, a single-family home in San Francisco sits around $1,450,000. If you were to pay the full price for that on a median income saving 30% of your income per month, it would take you about 81 years to afford it. Rather, you could take out a loan for a mortgage, though you would need to earn at least $300,000 per year and expect to pay $30,000 per year divided into monthly payments.
So there you have it, the U.S. cities that take the longest to save up for all-cash buys. We can expect that they will continue to get more expensive as time moves forward too. Pretty much none of us have 50 years to spare in hopes to buy a home in all-cash, so it’s far more practical to get a mortgage on a home, unless you’re Jeff Bezos, of course.
Have you ever purchased a home with an all-cash buy? What was your experience like? Let us know in the comments!