by Ken Harrison, 09/15/2024

According to LongTermTrends, in the US the median home price is (on average) 7 times the amount of median household income.

This means across America most people are no longer able to purchase a home. Typically in order to qualify for a conventional loan, the home price should be 3-3.5 times the buyer’s income.

The chart below prepared by HSH.Com shows the expected income by metro area that is needed to purchase a home. In Cleveland, a family income of $60,000 is adequate to purchase an average home, but in San Jose, a family would need an income of over $460,000 per year to purchase an average home. In many areas of the country, the majority of people are not able to purchase homes; and it is only the wealthy, typically older, buyers that can afford a home.

The larger metropolitan areas provide the majority of jobs, and the wages in those areas are higher than the less populated parts of the country. However, from a cost-of-living standpoint, the smaller communities, which are more than 1 hour away from the large metro areas, will offer better affordability and typically a higher quality of life.

The American dream of owning your own home can still be yours. To achieve this, you must find a job and move to an area of the country where homes can still be purchased at a price that is less than 3.5 times your income.

Magnum Steel Works is located in Mt. Vernon, Illinois. This is a 4-hour drive from Chicago and 1.5 hours from St. Louis, Missouri. It is a community of 15,000 people and it is located at the intersection of two major freeways. From Starbucks to Holiday Inn Express, most of the brands and choices that are available in a large city are here—in this family-friendly, welcoming community.

Also in Mt. Vernon, there are numerous job opportunities, especially in manufacturing. Magnum Steel Works is a fabrication facility and we are actively hiring electricians, mechanics, welders and machinists. The pay is less than what workers could make in the large metropolitan areas, but the cost of living, especially housing costs, are much better in Mt. Vernon as well.

In Jefferson County, where Mt. Vernon is located, the median home price is $132,000 according to Zillow. Yes, you actually can purchase a nice home for that price and even have a few acres. The median household income in 2022 was $58,384 according to the US Census Bureau. Consequently, the ratio of the median home sales price to median income is 2.26. Because this ratio is well below the 3-3.5 ratio required to get a home loan, the majority of residents in the county are able to buy a home. The table below shows that Mt. Vernon is very favorable as compared to other manufacturing areas within the US.

If you are a skilled worker, making a good salary, yet are trapped in a cycle where you see no way to ever own a home, it can be different. Consider moving to Mt. Vernon, Illinois and apply for a job at Magnum Steel Works.

Alternatively, perhaps you have been able to purchase a home on a 30-year mortgage, but see no way to pay off the mortgage in time to retire. It is possible to sell your home and use the equity to purchase a home in Jefferson County. With your equity, you could pay cash, or at least make a large down payment. For a lesser amount of money, you can purchase a much larger home—often with acreage.

If you want a better life, one where you are not caught in a vicious circle where you see no way to get out, consider making an exciting life change. It is often stated, “If you continue to do what you have done in the past, you will continue to get what you have gotten.” Change is not easy, but it can be highly beneficial. If you want to retire debt-free and if you want to own your own home, come to Mt. Vernon, Illinois and work for Magnum Steel Works. Your dream of home ownership can be a reality.