Subways with the most mortgage-burdened homeowners
About half of all Americans agree that the lack of affordable housing in their city is a major problem, according to a 2021 Pew Research Center Survey. Pew also found that a proportion of Americans concerned about declining housing affordability has increased in recent years, and for good reason.
Knowing this, Stacker to analyse United States Census Bureau data to find where homeowners spend most of their income on mortgage payments. To be included, each metropolitan area had to have at least 100,000 mortgage holders in 2020, according to the latest available data.
Residents of some of the most populous metropolitan areas in the United States are feeling the pressure on their mortgage payments as home values continue to rise nationwide. For decades, experts have used the same tried-and-true measure of housing affordability: when a person keeps their housing expenses below 30% of their annual income, it allows them to spend on the other necessities of life. , such as food, transport and health care.
Analyzing the number of homeowners who spend more than 30% of their income on mortgage payments in a given community can give an idea of the financial situation of a population. Experts call these homeowners “mortgaged”. Nearly 49 million Americans have mortgages, and about 27% of those are considered mortgaged, according to the most recent census data available.
Stacker found that California metropolitan areas ultimately topped the list of where homeowners are most burdened with mortgages. The Golden State became famous for a shortage of affordable housing, although subways in several other states also reached the top of the rankings. Keep reading to see if your Metro makes the list.
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#ten. Poughkeepsie, NY
– Total mortgage holders: 107,363
– Share that are burdened with mortgages: 35.2%
Housing prices in Poughkeepsie have steadily risen as the town on the bank of the Hudson River, just north of New York, has gone through a the comeback of all kinds in recent years. Victorian-style homes have been purchased and renovated, historic rail infrastructure transformed into tourist destinations, and vast parking lots have been cleaned up and replaced with multi-family apartment complexes.
The typical person living in Poughkeepsie earns around $47,000 a year, according to census data. Meanwhile, the median selling price of a home in the city is $333,000, according to data from real estate agent.com.
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#9. Stamford, Connecticut
– Total mortgage holders: 158,763
– Share that are encumbered with mortgages: 35.3%
Like Poughkeepsie, Stamford’s proximity to New York has made it a magnet for wealthy people looking to get away from the crowded city. Stamford is considered part of the affluent, predominantly white metropolitan area that also includes the neighboring cities of Bridgeport, Norwalk, and Danbury, also known as Connecticut’s “Gold Coast.”
Between 2010 and 2020, Stamford’s population grew the fastest since the mid-1900s, adding more than 10,000 residents. It is home to several Fortune 500 companies, including Charter Communications, United Rentals and Indeed. The median income in Stamford is nearly $97,000 a year, according to the most recent census data, and the typical home in the metropolitan area listings for $600,000according to data from Realtor.com.
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#8. San Francisco
– Total mortgage holders: 664,099
– Share that are burdened with mortgages: 35.4%
More than a third of homeowners in many of California’s most populous metros are considered mortgage-ridden, and San Francisco homeowners have to put up with some of the most expensive real estate prices in the entire United States . The so-called California Bay Area includes San Francisco, Oakland, and San José. It is home to an exceptionally wealthy slice of Americans due to the concentration of high-paying tech jobs in the area.
The median annual income in San Francisco County in 2020 was nearly $120,000, and in San Jose it’s $117,000, according to census data. Despite higher incomes, the exorbitant home values in the Bay Area still ensure that mortgage payments make up an inordinate share of residents’ financial obligations each year.
– Total mortgage holders: 120,650
– Share that are burdened with mortgages: 37.8%
In Honolulu, a greater proportion of homeowners are burdened with mortgages than even in San Francisco. Faced with a sharp drop in tourism revenue, Hawaii’s own government as well as local business CEOs worked to attract teleworkers during the COVID-19 pandemic – a decision that could have a lasting impact on housing affordability in Aloha State.
In the capital of Oahu’s South Shore, the typical household earns about $87,000 a year and the median home costs $700,000, according to real estate agent.com The data. Hawaiian experts have recommended that the rising cost of everything, including housing, has only bolstered the argument that the island state needs more affordable housing.
#6. New York
– Total mortgage holders: 2,298,350
– Share that are encumbered with mortgages: 38.1%
Most might think that New York City is the most unaffordable place to own a home in the United States – and it has a high proportion of homeowners with mortgages. The median New York home is selling for $860,000 today, according to real estate agent.com The data. The city is suffering from a severe housing shortage, which is putting upward pressure on rental costs as well as mortgages. As housing costs are reach historic heightselected officials face immense pressure to make up for the shortage.
#5. Riverside, California
– Total mortgage holders: 621,258
– Share that are encumbered with mortgages: 38.1%
Riverside is an hour’s drive east of Los Angeles and is part of the metropolitan area known as the Inland Empire. House prices in Riverside have almost tripled over the past two decades. Some experts have suggested that the growing trend of remote work is pushing more workers to buy homes in less populated parts of the state.
Each square mile of Los Angeles is home to an average of over 8,000 people. This level of density is much higher than in Riverside, where each square mile is home to about 300 people, according to census data. The typical Riverside home sells for around $625,000, according to Realtor.com, with census data showing the median household income to be $70,000 a year.
#4. San Diego
– Total mortgage holders: 434,507
– Share that are encumbered with mortgages: 38.5%
San Diego Mayor Todd Gloria launched a effort in March 2022 to spur construction of new homes in hopes of easing the shortage that is currently driving up housing costs for residents. The city has much of the same natural and oceanic beauty offered by LA, but is about half as densely populated, according to census data.
Property analysts who have seen residents leave town in recent years for cheaper homes elsewhere argue that wages have not caught up with the high cost of living in the San Diego area. The typical San Diego household earns approximately $83,000 per yearand the median home sold for $911,000, per Realtor.com.
#3. Oxnard, California
– Total mortgage holders: 122,724
– Share that are burdened with mortgages: 38.8%
Oxnard, the childhood home of farm unionist Cesar Chavez and training camp site for the NFL’s Dallas Cowboys, is one hour northwest of downtown LA. Oxnard is considered part of the metropolitan area which includes Thousand Oaks and Ventura.
The region’s economy depends on agriculture, manufacturing, tourism and, increasingly, financial and technological sectors. The median household wins $77,000 per yearand the typical Oxnard home sells for $760,000, according to Realtor.com.
– Total mortgage holders: 760,044
– Share that are burdened with mortgages: 40.4%
The coastal oasis of Miami is one of the least affordable cities in the country. It’s even more densely populated than LA, and the editorial board of the Miami Herald went from describing the metro area’s lack of affordable housing to a problem. real “crisis”.
Miami-Dade County itself officially declared a housing emergency in early 2022. Programs to spur the construction of more affordable housing have been insufficient to address the situation over the past decade, according to the herald. At around $44,000 per year, the median household income in Miami is incredibly low compared to housing costs in South Florida. The typical Miami house sells for $500,000according to Realtor.com.
#1. Los Angeles
– Total mortgage holders: 1,498,220
– Share that are burdened with mortgages: 41.8%
Rounding out the most unaffordable places to live, Los Angeles is easily the headliner for appallingly high housing costs and homeless workers in the United States. In Los Angeles, the typical household brings in $65,000 a year, according to census data. Meanwhile, data from Realtor.com shows the typical house sells for $1 million.
Los Angeles County, like other counties in California, actually saw its population decline since the start of the pandemic. Experts say residents are hunted, in part, by a need to find cheaper housing. And forget the affordable homes for sale in Los Angeles, the Los Angeles Times has even dubbed finding a place to rent a “competitive sport” in today’s economy.
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