How Much of Your Income Goes to Housing?

 

Information courtesy of the California Association of REALTORS (CAR)

A new study by the Center for Housing Policy, entitled Housing Landscape 2012, found that the share of working households paying more than half their income for housing rose significantly between 2008 and 2010 for both renters and owners.  This annual report explored the latest Census date on housing costs and income, including housing cost burden data from the 50 largest U.S. metropolitan ares, all 50 states, and the district of Columbia.  The report found that nearly one in four working households in the U. S. spends more than half of total income on housing.

The percentage grew between 2008 and 2010, largely due to a drop in incomes and a rise in the price of rent.  According to report author Laura Williams, rents rose due to increased demand for rental housing, which has exceeded supply.

California was the state with the highest share of working households with a severe housing cost burden (34 percent) in 2010.

Among the 50 largest metropolitan areas, three of the top five most burdened areas were in California.  In the Los Angeles-Long Beach-Santa Ana area, 38 percent or working households had a severe housing cost burden; the San Diego-Carlsbad-San Marcos area had 37 percent of households in this boat, and the Riverside-San Bernadino-Ontario area came in at 35 percent.

For information on how owning can cost you less than renting please contact me!