Real Estate

Income needed to buy your first home in Tampa.

While that’s less than Miami, it’s still more than many residents.

Tampa, FL, is known for its crystal clear beaches, historic neighborhoods, vibrant sports culture, and unique festivals. In addition to being a culturally rich coastal haven, Tampa is also home to a very competitive real estate market that has seen major growth in recent years.

For many, Buying a Home in Tampa It’s a dream come true, but it’s also important to know how it will affect your finances. From down payments to monthly mortgage payments, there’s a lot to understand before buying your first home.

So whether you already live in The Big Goa or are looking to move to the area, here’s a guide to the income you’ll need to buy your first home in Tampa.

check this out Our original report For a detailed country-wide analysis.

How much income do you need to buy a starter home in Tampa?

The median sales price for a starter home in Tampa is $255,000. To afford it, first-time homebuyers in Tampa must earn $82,528 per year, a 7.8 percent increase from 2023.. However, the median income in Tampa is $75,316, ie The typical resident cannot afford a starter home.

As expected, starter homes in Tampa are more affordable than the average home (all price brackets combined; see methodology for details). To afford a median priced home in the area, You will need to make $103,613. (Until October 2023).

Nationwide, you need an income of $75,849 to afford a typical starter home, with an average price of $240,000. The average American household earns an estimated $84,072.

A First-Time Home Buyer’s Guide to the Tampa Housing Market

Tampa’s housing market has experienced steady growth over the past five years, with big jumps in popularity during and after the pandemic. Tampa’s recent popularity is largely due to its sunny weather and relatively affordable housing, making it attractive to coastal home buyers. Sunny and lazy. Actually, there was Tampa Second most popular metro To move home buyers nationwide in June 2022.

This popularity has helped drive home prices above the national average. And beyond that. From January 2021 to April 2024, the median home price in Tampa increased from $290,000 to $427,000. The area was Especially sensitive For buyers backing out of contracts, though.

Interestingly, there are actually condos in this area. Price drop Recently they have recovered from a surge in popularity that has cost many buyers. Increased insurance And HOA expenses It also helped to lower prices as a result of extreme weather risks.

If you’re looking to visit Tampa, the area is home to many amenities and attractions within its neighborhoods. Busch Gardens, Florida Aquarium, Zoo Tampa, and Yber City (a historic neighborhood) are a few popular options. Some Popular Tampa neighborhoods involved in Forest hills, Harbor IslandAnd Beautiful without noise.

What does a typical down payment look like for a starter home in Tampa?

Here are some typical down payment amounts for a typical $255,000 starter home in Tampa:

Down payment percentage Down payment amount
3% down payment $7,650
3.5% down payment $8,925
5% down payment $12,750
10% down payment $25,500
15% down payment $38,250
20% down payment $51,000

Down payments can range from 0% to 100% of the home’s total value, depending on your budget, loan type, and long-term preferences. Although experts have historically recommended budgeting for a 20 percent down payment, rising housing costs and continued affordable wage growth have 15% down payment is becoming more common.

Some loan types allow for lower down payments. For example, a Federal Housing Administration (FHA) The loan requires only 3.5% down, the lowest possible down payment for one Conventional loans is 3%. These amounts usually depend on your credit score, so buyers with higher credit scores may qualify for lower payments.

How to Prepare Your Home for Hurricane 3

What is a typical mortgage payment for a starter home in Tampa?

The typical monthly mortgage payment for a starter home in Tampa is $2,063. This assumes you put 3.5% down and an interest rate of around 7%.

If that payment seems like a lot, Tampa rentals unfortunately couldn’t be more affordable. The average rent in Tampa is $2,288, which is $200 more than the average mortgage payment. Regardless, you can use one Affordability Calculator To see what you can afford based on your income and down payment.

What should you do next?

If you’re in the market for your first home in Tampa, this is important to understand. How Much Home Can You Buy?. Look at your annual income, credit score, current mortgage rates, and local market trends to decide which is best for you.

From there, one Tampa Agent can help you navigate the entire home buying process and provide valuable local expertise. To learn more about how to buy a home, check out Redfin’s The First Time Home Buyer’s Guide.

Procedures

Redfin divides all U.S. real estate into five buckets based on Redfin estimates of the market value of homes. There are three equal size tiers, plus tiers for the bottom 5% and top 5% of the market. Redfin defines “starter homes” as homes that have fallen in value in the 5th to 35th percentile of sales. Redfin estimates level

We calculated the annual income needed to afford a starter home, assuming a buyer spends no more than 30% of their income on housing payments. Housing payments are calculated assuming a buyer has a 3.5% down payment and take into account the average monthly sales price and average mortgage interest rate.

National income data are adjusted for inflation using the Consumer Price Index. 2024 income estimates are based on US Census Bureau (ACS) 2022 median household income estimates using a 12-month moving average of nominal wage growth. This rate was compiled from the Current Population Survey and reported by the Federal Reserve Bank of Atlanta.

We assume that housing payments include mortgage principal, interest, property taxes, homeowners insurance, and mortgage insurance (when applicable).

All data obtained from February 2024 unless otherwise stated.


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