The dream of homeownership on a tech salary sounds straightforward: you earn six figures, you should be able to buy a house. The reality is far more complicated. A software engineer earning $150,000 in Austin is in a radically different position than one earning $180,000 in San Francisco—even though the San Francisco engineer earns more on paper.
We ran the numbers for 10 major tech cities using the 28% debt-to-income (DTI) rule, a 20% down payment, and a 6.5% mortgage rate (30-year fixed). The results reveal a stark global divide in tech worker housing affordability.
The Math Behind Our Analysis
Before diving into the city breakdowns, here is how we calculate affordability:
- Gross annual salary → apply local tax rates → monthly after-tax income
- Maximum monthly housing payment = after-tax income × 28% (the conservative DTI threshold most lenders use)
- Maximum mortgage = monthly payment converted to a loan amount at 6.5% over 30 years (factor: ~$6.32 per $1,000 borrowed)
- Maximum home price = mortgage ÷ 0.80 (because you are financing 80% with a 20% down payment)
This gives us the maximum home price a single tech earner can realistically afford. We then compare it against the actual median home price in each city.
Use our Salary Calculator to get a precise after-tax figure for your own situation.
City-by-City Affordability Breakdown
1. San Francisco, CA
| Metric | Value | |--------|-------| | Median software engineer salary | $185,000 | | Effective tax rate (federal + CA state) | ~33% | | Monthly after-tax income | $10,329 | | Max monthly housing payment (28%) | $2,892 | | Max mortgage (30yr @ 6.5%) | $457,600 | | Max affordable home price (20% down) | $572,000 | | Median home price | $1,350,000 | | Affordability gap | -$778,000 |
San Francisco is the most extreme case of tech salary versus housing cost. Even at $185K gross, a single engineer can afford roughly 42% of the median home price. The math simply does not work without either dual income, significant equity/RSU windfalls, or family assistance with the down payment.
A 20% down payment on the median home here requires $270,000 in cash—more than most engineers' entire annual pre-tax salary.
Explore salary data: San Francisco salary insights
2. New York City, NY
| Metric | Value | |--------|-------| | Median software engineer salary | $170,000 | | Effective tax rate (federal + NY state + NYC) | ~35% | | Monthly after-tax income | $9,208 | | Max monthly housing payment (28%) | $2,578 | | Max mortgage (30yr @ 6.5%) | $407,900 | | Max affordable home price (20% down) | $509,900 | | Median home price (Manhattan condo) | $1,100,000 | | Affordability gap | -$590,100 |
New York's triple-layer taxation (federal, state, city) creates one of the highest effective rates in the world for high earners. Most tech workers in NYC rent indefinitely or buy in outer boroughs where median prices drop to $550K–$700K—still a stretch on a single income.
The realistic path to ownership in Manhattan requires either dual tech income ($300K+ household) or looking at Brooklyn/Queens, where the gap narrows significantly.
See more: New York salary insights
3. Seattle, WA
| Metric | Value | |--------|-------| | Median software engineer salary | $175,000 | | Effective tax rate (federal only, no state tax) | ~25% | | Monthly after-tax income | $10,937 | | Max monthly housing payment (28%) | $3,062 | | Max mortgage (30yr @ 6.5%) | $484,500 | | Max affordable home price (20% down) | $605,600 | | Median home price | $830,000 | | Affordability gap | -$224,400 |
Seattle's missing state income tax is a genuine advantage. An engineer here keeps roughly $1,700/month more than a similarly-paid engineer in California. The affordability gap exists but is much smaller than SF or NYC. With a modest dual income (partner earning $60K+), the median home becomes reachable.
The suburbs (Bellevue, Redmond, Kirkland) offer median prices around $700K–$750K, which closes the gap further—and many major employers (Microsoft, Meta) are located there anyway.
Check: Seattle salary insights
4. Austin, TX
| Metric | Value | |--------|-------| | Median software engineer salary | $155,000 | | Effective tax rate (federal only, no state tax) | ~23% | | Monthly after-tax income | $9,946 | | Max monthly housing payment (28%) | $2,785 | | Max mortgage (30yr @ 6.5%) | $440,600 | | Max affordable home price (20% down) | $550,800 | | Median home price | $475,000 | | Affordability gap | +$75,800 (affordable!) |
Austin is one of the few major US tech hubs where a single software engineer income can afford the median home with room to spare. No state income tax, a lower cost base, and a median home price that has actually cooled from its 2022 peak make this the most accessible market on this list.
The 20% down payment ($95,000) is achievable with 3–4 years of disciplined saving on a $155K salary. Property taxes in Texas are high (~1.8%), which adds roughly $700/month, but even accounting for that, the numbers work.
Full breakdown: Austin salary insights
5. London, UK
| Metric | Value | |--------|-------| | Median software engineer salary | £85,000 (~$107,000) | | Effective tax rate (income tax + NI) | ~32% | | Monthly after-tax income | £4,817 ($6,060) | | Max monthly housing payment (28%) | £1,349 ($1,697) | | Max mortgage (30yr @ 5.2% UK rate) | £230,000 ($289,000) | | Max affordable home price (20% down) | £287,500 ($361,500) | | Median home price (Zone 2–3) | £550,000 ($692,000) | | Affordability gap | -£262,500 (-$330,500) |
London's combination of lower base salaries (compared to US tech hubs) and extremely high property prices creates a severe affordability crisis. UK mortgage terms are also typically shorter (25–30 years) and rates have stabilized around 5.2% for fixed deals, adding to the squeeze.
The Help to Buy scheme has ended, and most first-time buyers in London now rely on the Lifetime ISA (£4,000/year government bonus) or shared ownership schemes. Commuter towns with strong rail links (Reading, Cambridge, Bristol) offer median prices of £300K–£400K and increasingly robust tech job markets.
6. Berlin, Germany
| Metric | Value | |--------|-------| | Median software engineer salary | €80,000 (~$87,000) | | Effective tax rate (income tax + solidarity + social) | ~38% | | Monthly after-tax income | €4,133 ($4,500) | | Max monthly housing payment (28%) | €1,157 ($1,260) | | Max mortgage (30yr @ 3.8% German rate) | €248,000 ($270,000) | | Max affordable home price (20% down) | €310,000 ($337,500) | | Median home price (apartment) | €350,000 ($381,000) | | Affordability gap | -€40,000 (-$43,500) |
Berlin is surprisingly close to affordable for a single tech earner. German mortgage rates remain significantly lower than US/UK rates (around 3.8% for 10-year fixed, the standard German term), which dramatically improves purchasing power. The gap is small enough that a modest salary bump, a few years of savings, or a partner's income easily bridges it.
The catch: Germany's high tax and social contribution burden means your raw purchasing power is lower despite reasonable property prices. Closing costs in Germany also run 10–12% of purchase price (notary, land transfer tax, agent fees), which is much higher than most other markets.
7. Toronto, Canada
| Metric | Value | |--------|-------| | Median software engineer salary | C$130,000 (~$95,000 USD) | | Effective tax rate (federal + Ontario) | ~30% | | Monthly after-tax income | C$7,583 ($5,540) | | Max monthly housing payment (28%) | C$2,123 ($1,551) | | Max mortgage (25yr @ 5.5% Canadian rate) | C$350,000 ($256,000) | | Max affordable home price (20% down) | C$437,500 ($320,000) | | Median home price (condo) | C$680,000 ($497,000) | | Affordability gap | -C$242,500 (-$177,000) |
Canada's standard amortization period is 25 years (not 30), which reduces maximum borrowing power. Combined with Toronto's runaway housing market and lower absolute salaries compared to US tech hubs, single-income homeownership in Toronto is extremely difficult.
The 2025 FHSA (First Home Savings Account) helps marginally—tax-deductible contributions up to $8,000/year—but the fundamental arithmetic doesn't change. Many Toronto tech workers are either renting long-term or buying condos in emerging neighborhoods (Scarborough, Etobicoke) where prices sit around C$450K–$550K.
8. Sydney, Australia
| Metric | Value | |--------|-------| | Median software engineer salary | A$140,000 (~$91,000 USD) | | Effective tax rate (federal + Medicare levy) | ~31% | | Monthly after-tax income | A$8,050 ($5,230) | | Max monthly housing payment (28%) | A$2,254 ($1,465) | | Max mortgage (30yr @ 6.2% AU rate) | A$368,000 ($239,000) | | Max affordable home price (20% down) | A$460,000 ($299,000) | | Median home price | A$1,150,000 ($747,000) | | Affordability gap | -A$690,000 (-$448,000) |
Sydney is one of the least affordable cities in the world relative to local incomes—not just for tech workers, but for everyone. The median home price is over 8x the median household income. A single tech salary covers roughly 40% of the median price, virtually identical to San Francisco's ratio.
9. Singapore
| Metric | Value | |--------|-------| | Median software engineer salary | S$120,000 (~$90,000 USD) | | Effective tax rate | ~12% | | Monthly after-tax income | S$8,800 ($6,600) | | Max monthly housing payment (28%) | S$2,464 ($1,848) | | Max mortgage (30yr @ 3.5% SG rate) | S$548,000 ($411,000) | | Max affordable home price (20% down) | S$685,000 ($514,000) | | Median condo price (private) | S$1,200,000 ($900,000) | | Affordability gap (private condo) | -S$515,000 (-$386,000) |
Singapore's extremely low tax rates give you more take-home pay, but private property prices are astronomical. The saving grace is Singapore's HDB (public housing) system—resale HDB flats in good locations cost S$500K–$700K, bringing ownership within reach for single tech earners. About 80% of Singaporeans live in HDB flats, and for good reason: the value proposition is hard to beat.
10. Dubai, UAE
| Metric | Value | |--------|-------| | Median software engineer salary | AED 360,000 (~$98,000 USD) | | Effective tax rate | 0% (no income tax) | | Monthly after-tax income | AED 30,000 ($8,170) | | Max monthly housing payment (28%) | AED 8,400 ($2,288) | | Max mortgage (25yr @ 4.5% UAE rate) | AED 1,510,000 ($411,000) | | Max affordable home price (20% down) | AED 1,887,500 ($514,000) | | Median apartment price | AED 1,200,000 ($327,000) | | Affordability gap | +AED 687,500 (+$187,000, affordable!) |
Dubai's zero income tax combined with relatively moderate property prices (compared to other global financial centers) makes it one of the most accessible markets for tech workers. A single engineer can comfortably afford the median apartment and still have budget headroom.
The caveat: Dubai's property market is volatile, visa status is tied to employment (though the Golden Visa program helps), and there is no permanent residency path equivalent to citizenship.
For a detailed comparison: Dubai vs Europe salary and tax comparison
The Affordability Scorecard
| City | Affordable on Single Tech Income? | Key Factor | |------|----------------------------------|------------| | San Francisco | No | Extreme home prices | | New York | No | Triple taxation + prices | | Seattle | Barely (suburbs yes) | No state tax helps | | Austin | Yes | No state tax + moderate prices | | London | No | Lower salaries + high prices | | Berlin | Nearly (small gap) | Low mortgage rates help | | Toronto | No | 25yr amortization + prices | | Sydney | No | 8x income-to-price ratio | | Singapore | HDB yes, private no | Public housing is the path | | Dubai | Yes | Zero tax + moderate prices |
How Dual Income Changes Everything
The single biggest lever for homeownership is a second income. Here is how the math shifts for our three most-challenged cities:
San Francisco (dual tech income):
- Combined gross: $340,000 → after-tax: $19,000/month
- Max affordable home: $1,050,000
- Gap shrinks from -$778K to -$300K (still tough, but condos become reachable)
New York (one tech + one $70K income):
- Combined after-tax: $12,500/month
- Max affordable home: $690,000
- Gap shrinks from -$590K to -$410K for Manhattan, but Brooklyn 2BR becomes feasible
London (dual tech income):
- Combined after-tax: £9,200/month
- Max affordable home: £550,000
- Gap closes entirely for Zone 2–3 properties
Strategies That Actually Work
1. The Geo-Arbitrage Play
Work remotely for a San Francisco company while living in Austin, Denver, or Raleigh. You keep the high salary but buy at local prices. At $185K with Austin home prices, you have $100K+ in headroom above the median.
Compare cities side by side: Cost of Living Comparison Tool
2. The Down Payment Acceleration
On a $155K salary with disciplined saving:
- Year 1–2: Max 401(k), save $2,500/month → $60K
- Year 3: Reduce 401(k) to match, save $3,500/month → $42K
- Year 4: Total saved: ~$102K (enough for 20% down on $510K)
This assumes no RSU vesting, bonuses, or side income—all of which accelerate the timeline.
3. The Rent-vs-Buy Calculation
In cities with massive affordability gaps, renting is not "throwing money away"—it is often the mathematically correct choice. In San Francisco, the monthly cost of owning the median home (mortgage + property tax + insurance + maintenance) exceeds $8,500/month. Renting a comparable unit costs $3,500–$4,000. The $4,500/month difference invested in index funds at 8% average return builds significant wealth over 10 years.
Run the numbers for your specific role: Salary Percentile Calculator
4. Explore High-Value Markets
The cities where tech salaries create the most purchasing power are not always the obvious ones. Our data shows the most affordable tech cities offer 2–3x the housing purchasing power of coastal hubs, often with growing job markets.
The Bottom Line
Homeownership on a single tech salary is achievable in Austin, Dubai, Berlin (nearly), and Singapore (HDB). In San Francisco, New York, London, Sydney, and Toronto, it requires either dual income, substantial equity windfalls, or geographic compromise.
The highest-paying cities for tech workers are, by design, the least affordable for housing. This is not a coincidence—it is the fundamental tension of knowledge-economy geography. The smartest financial move for many engineers is not chasing the highest gross salary but optimizing for after-tax, after-housing purchasing power.
Browse our full city salary directory to find where your money goes furthest: Salary Insights Directory. Or compare two cities head-to-head: Compare Salaries.