On average, Californians spend 28.84% of their annual income on homeownership costs. The state’s median income is $84,097, meaning residents spend $24,252 a year just to own a home.
New research by real estate website NewJerseyRealEstateNetwork.com Californians spend the highest percentage of their income on homeownership, revealed
California homeowners may be feeling the pain of persistent inflation or may be realizing the greatest savings from rebalancing the economy.
The latest Consumer Price Index (CPI), released on August 10, shows that shelter costs are the most important factor affected by volatile inflation changes.
By analyzing census data, researchers determined that each state’s average annual housing cost is proportional to median income. They look at costs such as mortgage repayments, various insurances, property taxes, utilities, fuel costs, mobile home costs, and condo fees, and find out which states are the most expensive to own a home in. to clarify.
Which states spend the most on housing?
California stands out among American states, with the highest proportion of housing costs in the country. Due to the high cost of living and housing, Californians may look for: Another way to make money.
On the opposite coast, New York is just behind California, with 24.8% of spending going toward housing. If her average income is $75,157, the household expenditure per household is $18,636.
The third most expensive state is New Jersey, with a median income of $89,703 and a housing cost of 24.75%.
Hawaii ranks fourth in states where homeowners spend most of their income on housing. The average homeowner price in Hawaii is $21,732 per year, which is 24.69% of the median income of $88,005.
In fifth place is Connecticut, where the average annual cost for homeowners is $20,460, or 24.48% of the state’s median income of $83,572.
The top 10 list also includes Massachusetts in 6th place, Rhode Island in 7th place, Oregon in 8th place, Washington state in 9th place, and Nevada in 10th place.
Massachusetts homeowners spend an average of 24.18% on housing costs. Rhode Island residents spend an average of 23.57%. In Oregon, 22.84% of spending goes toward homeownership, compared to 22.83% in Washington and 22.51% in Nevada.States could benefit from: additional income This is to offset costs until inflation is balanced.
spokesperson for NewJerseyRealEstateNetwork.com “California is known for its relatively high housing costs, but it’s still surprising to see how much higher homeownership costs are in the state compared to the rest of the country.” Homeowners in the next closest state, New York, spend on average 15.1% less than homeowners in California, after accounting for household income differences. ”
They go on to explain, “How rising cost of living will impact these numbers and whether costs to homeowners in California will remain significantly higher than in other parts of the United States. It will be particularly interesting to see.”
Which state spends the least on housing?
The study found that Americans living in West Virginia spend the lowest percentage of their income on housing costs. On average, residents spend 13.75% of their $50,884 income on homeownership. This ratio equates to just $6,996 spent annually to maintain your roof.
North Dakota steals the second spot on the list with the lowest housing cost ratio, with 15.57% of income going toward housing costs. A median income of $68,131 means you spend $10,608 a year on housing.
Lower Dakotans spend $10,536 a year on housing, accounting for 16.48% of their average annual income of $63,920, with their neighbors to the south ranking third.
Fourth on the list are residents of Arkansas, who have a lower median income but pay a lower percentage of housing costs. You earn $3,123 per year, so you spend $8,616, or 16.53% of your gross income, on housing.
Mississippi has the lowest median household income in America at $49,111 and ranks fifth lowest in housing cost rates, with 16.64% or $8,172 spent annually on homeownership.
Ranking 6-10, Iowa State is at %16.76%, Alabama at 17.1%, Oklahoma State at 17.17%, Wyoming at 17.21%, and Indiana rounding out the list at 17.3%.
Latest CPI shows housing is the sector where the economy will slow the most in the future
The latest CPI report shows shelter costs contributed 90% of total inflation in July. But Americans don’t have to worry for long. economic researcher At the Federal Reserve Bank of San Francisco, he predicts a sharp turnaround.
You may remember that the first interest rate hike by the Federal Reserve had a big impact on housing. Shelter costs felt the impact early in the fight against inflation and are now up 7.7% overall compared to last year, even though monthly costs have only increased by 0.4%.
But Americans need to take the time to bring it in. more income, because the gradual decline suggests a slow trend towards achieving balance again. San Francisco Fed researchers believe we may be on the verge of the most significant contraction in haven inflation since the 2007-2009 global financial crisis.
This post was created by Mom, what are you talking about? Syndicated by Wealth of Geeks.