I decided to do some calculations to see how the average West Virginian household is able to afford a home at average price in the state.
Average WV household income: ~$60,000 After taxes (assuming 20%): ~$48,000, ~$4,000 weekly Average home sale price: ~$160,000
It's recommended you spend, at most, 30% of your income on a mortgage or housing. With that in mind, the current mortgage at current interest rates for an average home price of $160,000 is around $1,100 a month. 30% of the monthly take home pay of $4,000 is $1,200.
I was conservative with my calculations, so in reality, the mortgage is a little less expensive and the recommended percentage of income to spend on the mortgage is a little greater.
What do you guys think of this situation? It seems that when it comes to home owning, West Virginia's population is at the greatest advantage. It's no suprise that our home ownership rate is the highest in the nation at 78.6%.