Special submission by NewJerseyRealEstateNetwork.com
Revealed: The most expensive states to be a homeowner
- California residents spend 28.84% of the median state income on housing costs, the most out of any state.
- New York is second with 24.8%, while New Jersey is third with 24.75%.
- West Virginia costs the least to be a homeowner, with residents spending 13.75% of the median income on housing costs.
- Nevada has the lowest median age of housing structures at 28 years.
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Special submission by NewJerseyRealEstateNetwork.com
A new study has revealed that California residents spend the most income on housing costs.
Real estate website NewJerseyRealEstateNetwork.com analyzed census data to find the average yearly housing cost in each state as a proportion of median income, to uncover which state costs the most to own a home.
Housing costs included mortgage repayments, various insurances, property taxes, utility bills, fuel bills, mobile home costs, and condominium fees.
California is the state where homeowners spend the largest percentage of their income on housing costs. The average annual cost for a homeowner with a mortgage in California is $24,252, which is 28.84% of the state median income of $84,097.
New York homeowners are the second biggest spenders in terms of housing costs. The average homeowner pays $18,636 per year on housing costs, which is 24.8% of the state median income of $75,157.
New Jersey homeowners are the third biggest spenders when it comes to housing costs. The average cost to the homeowner was $22,200 per year, which is 24.75% of the state median income of $89,703.
Hawaii ranks fourth for states where homeowners are spending the largest proportion of their income on housing costs. The average cost for a homeowner in Hawaii is $21,732 per year, which is 24.69% of the state’s median income of $88,005.
With an average annual cost to the homeowner of $20,460, which is 24.48% of the state median income of $83,572, Connecticut is fifth for the state where homeowners are spending the largest proportion of their income on housing costs.
Massachusetts comes sixth and Rhode Island comes seventh for the state where homeowners are spending the largest proportion of their income on housing costs. Massachusetts homeowners spend 24.18% of the state’s median income on housing costs, while Rhode Island homeowners spend 23.57% on housing costs.
Rounding out the top ten is Oregon in eighth, Washington in ninth, and Nevada in tenth. Homeowners in each of these states spend 22.84%, 22.83%, and 22.51% of their income on housing costs respectively.
West Virginia is the state where it costs the least to be a homeowner, with homeowners spending just $6,996 per year on housing costs, which is only 13.75% of the state’s median income of $50,884.
Table showing the average annual cost to homeowners compared to median household income
A spokesperson for NewJerseyRealEstateNetwork.com commented on the findings:
“California is known for relatively higher housing costs, yet it is still surprising to see how much higher the costs to the homeowner are in the state compared to the rest of America. The homeowners of the next closest state, New York, spend 15.1% less on average than homeowners in California, when accounting for differences in household income.
It will be particularly interesting to see how the rising cost of living impacts these figures and whether California’s cost to the homeowner continues to remain so high compared to the rest of America.
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Sources: (via Census Business Builder): 2021 American Community Survey 5-year Summary File, 2016 American Community Survey 5-year Summary File, 2021 American Community Survey 5-year Data Profile
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