How much do you need to earn to afford an average home in Buffalo?

There’s no doubt that Buffalo is experiencing a renaissance on the housing front.

Over the past two years, Western New York has held the distinction of having the hottest real estate market in the country. Several surveys have been released that rank Buffalo as the number one real estate market in the entire country. This is of course great news for real estate sellers and investors.

However, this means things are getting more difficult for those looking to buy a home. While there are tons of first-time buyer assistance programs throughout the 716 to help you purchase a home, there are some real things to consider when the real estate market is in full swing.

READ MORE: America’s Hottest Real Estate Market Is in Western New York

With real estate prices increasing every year, one of the main things you need to pay attention to is exactly how much house you can afford.

How much does the average house cost in WNY?

Real estate prices have been going up like crazy lately. When you look at the data, it’s hard to believe that over the last ten years, the average price of a home in Western New York has almost doubled.

According to data from the Buffalo Niagara Association of REALTORS, the average Buffalo home sold for $143,729 in 2014. As of May 2024, that same Buffalo-area home costs $286,390.

READ MORE: Buffalo to receive $80 million in housing assistance from New York

The Federal Housing Finance Agency says the average home value has increased about 4% year over year, so over ten years a home would increase about 40%. In Buffalo, prices have increased 100%, which makes things a little more difficult when it comes to affordability since incomes have not increased 100% like home prices.

Exactly how much money do you need to buy an average home in the Buffalo area?

If you’re in the market to buy an average Buffalo home, you’ll want to make sure you have a solid income to be able to afford it.

Considering current interest rates for a 30-year mortgage, which are around 6.86% according to the Primary Mortgage Market Survey, buying a home with a sales price of $286,390 would mean you would have a monthly mortgage payment of approximately $2,312 (this amount includes estimated insurance and taxes in Buffalo).

LEARN MORE: First-time home buyers can get up to $30,000 in New York State

Using the 28/36 rule, which states that your mortgage payment should not exceed 28% of your gross monthly income, you would need to earn at least $7,000 per month to afford this home.

That works out to more than $83,000 a year. In a region where the median household income is $68,014, it’s becoming increasingly difficult for the average West New Yorker to afford the average home.