The States With the Most and Least Cost-Burdened HomesBy RISMedia Staff
While homeownership is known to be costly, 21.48% of owner-occupied households in the U.S. are housing cost-burdened, according to a new report from LendingTree.
LendingTree’s latest report analyzed U.S. Census Bureau American Community Survey data to determine the share of owner-occupied households in each state spending at least 31% of their income on monthly housing costs. The report found that married couple households are least likely to be housing cost-burdened at 14.47%. The share is slightly higher for couples with kids at home at 15.8%. In addition, single women homeowners are most likely to be housing cost-burdened at 39.62%. For single mothers, 43.31% are cost-burdened. Meanwhile, 32.59% single men are cost-burdened, along with 30.36% of single fathers. States with the highest shares of cost-burdened households:
“As this study shows, those who spend at least 31% of their monthly income on monthly housing costs are considered housing-cost burdened. The reason is because households that spend more than this can end up with less money than needed for their savings or to keep up with important bills, like food and car or credit card payments,” said Jacob Channel, LendingTree's Senior Economist and report author. “That said, spending 31% or more of your income on housing costs isn’t necessarily the end of the world. Some people can be financially secure while spending more money on housing than what is generally recommended.” Channel concluded, “At the end of the day, you should do your best to keep the amount you spend on your home manageable. However, what “manageable” will look like will vary by person and household. Owing to this, though the recommendation that people spend less than 31% of their monthly income on housing costs is often good to follow, it’s far from an absolute rule. For the full report, click here. |
Today's Top Stories |