An analysis by the Business Journal shows it takes a salary of $105,000, for a single or combined for a couple, to buy the median new home available in Sacrament. It costs $485,000. Assuming a 5% down payment and a fixed interest loan for 30 years … well, that median new home isn’t out of reach just for teachers and cops.
It’s also unaffordable to the average attorney, architect, and electrical engineer, the study shows. The same is true for accountants, optometrists and software engineers with the average salary for their profession. As for college professors … well, the new faculty at Sacramento State earn between about $50,000 and $70,000, depending on their specialty … but none of them qualify for that median new home either.
Creative financing can stretch a homebuyers reach, of course … but at greater risk.