ALBUQUERQUE, NM (KRQE) – A new study by realty company Point 2 identifies Albuquerque as the 29th most-expensive city, among the top 50 most populated cities when it comes to buying a starter home. Of course, the study points out the definition of what constitutes a “starter home” has changed over the years. It cites the increasing cost of land, zoning restrictions, and cost of building materials has turned even a modest home purchase into a major undertaking.
The Point 2 study focuses on what it takes for a renter to make the jump to being a homeowner. For renters in Albuquerque, you would need to make a salary of about $66,398 to afford a starter home with a median price of $245k and a 7% interest rate. The study considered that the monthly mortgage should not represent more than 30% of a renter’s household income, assuming a 20% down payment was already made. Conversely, to be comfortably a renter in the city, you only need to be making an average of $33,453.
Coming in behind Albuquerque in the study was Dallas, with a median starter home price of $221k with an annual salary of $66,243 – a difference from Albuquerque’s of $155.
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