New study reveals how long it takes to pay off a home in Phoenix
If you are in the market to purchase a new home, a new study released Monday might peak your interest.
FILE - In this Thursday, Dec. 3, 2015, file photo, a home under construction and for sale is shown in Roswell, Ga. U.S. home prices climbed steadily in July 2017 even as sales have slowed, evidence that a limited supply of available houses is distorting the real estate market. (AP Photo/John Bazemore, File)
(AP Photo/John Bazemore, File)
PHOENIX — If you are in the market to purchase a new home, a new study released Monday might peak your interest.
A website that examines real estate trends, Point2 Homes, compiled a list that highlights the average time it takes to pay off a home in 50 of the most-populated cities in the nation.
The study focused on median home sale prices and the median annual income to determine affordability in each state.
The higher the ratio of sale prices to income, the longer it takes to pay off a home, according to the study.
The study highlighted all of North America, including Canada and Mexico. Vancouver was found to have the most unaffordable real estate market, beating out popular U.S. cities such as San Francisco and Manhattan.
The median home sale price in Vancouver was found to be over $1.1 million, with a median income of just under $64,000.
In Phoenix, the median home sale price was found to be right at $242,000 with a median income of just under $48,500.
Hypothetically, it would take a home buyer just five years to pay off their home if home buyers put their entire income toward paying off a mortgage. Compare that with Vancouver, where it would take home buyers 17 years to accomplish the same feat.
Despite the drastic difference in time, it will take between Vancouver and Phoenix, five years is still close to three years longer than the last city listed in the study.
With a median home price of just $48,000 and income of close to $26,000, it is estimated to take just 1.8 years to pay off a home in Detroit, Mich., which ranks lower than seven cities in Mexico included in the study.
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