WASHINGTON–More than one quarter of homeowners in the United States are “house poor,” meaning they are spending more than 30% of their income on housing costs, according to a new study.
The study, conducted by Chamber of Commerce, a product research company for real estate agents and entrepreneurs, used numbers from the U.S. Census Bureau to analyze monthly housing costs and median household income in the 170 most populated U.S. cities. In its study, Chamber of Commerce said it found that 27.4% of all homeowners are “cost-burdened.”
According to the study, Miami, Los Angeles and New York City have the highest number of “house poor” residents, with more than four in 10 homeowners in each city feeling stretched beyond their means by their housing bills. And with the exception of New York City, the top 10 cities in the United States for cost-burdened homeowners are all located in either California or Florida.
High interest rates combined with soaring home prices since the pandemic have contributed to the strain for many homeowners, the study notes. The only relief for many will come when the Fed begins to lower rates and mortgage-holders are able to refinance mortgages, and even that will take time.
The study also identified cites with the most “budget-minded” homeowners, as shown in the chart below.
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