Can You Afford a $1 Million Home? Essential Salary Insights from a Real Estate Expert

July 13, 2025 - 06:59

Thinking about purchasing a $1 million home? You might want to reconsider your financial expectations. A real estate expert recently shed light on the true salary required to comfortably afford such a property, and the numbers might surprise many prospective buyers.

To secure a $1 million home, buyers typically need a substantial annual income, often exceeding $200,000. This figure accounts for not just the mortgage payments, but also property taxes, insurance, and maintenance costs. Lenders generally recommend that your monthly housing expenses should not exceed 28% to 30% of your gross monthly income.

In addition to the base salary, buyers should also have a solid down payment—ideally 20%—which translates to $200,000 for a $1 million home. This upfront investment can significantly impact monthly mortgage payments and overall affordability.

Ultimately, aspiring homeowners should carefully evaluate their financial situation and prepare for the realities of owning a high-value property.