A Zillow analysis looks at affordability in the 35 largest US metros
Homeowners with a mortgage in Washington DC have the most income left over after their monthly payment while those in Los Angeles have the least.
A Zillow analysis of the 35 largest US metros considers the annual gross median income and mortgage payment on a median-priced home and finds that those in DC have $7,000 left after their monthly mortgage payment, while those in Los Angeles have less than half that at $3,450.
"In our quest for happiness, or at least satisfaction, we must accept tradeoffs. A good-paying job with career growth potential often comes with expensive housing, leaving less for life's other essentials such as taxes, child care, transportation, medical services, food and leisure," said Skylar Olsen, Zillow Director of Economic Research. "Finding that balance where housing costs leave a comfortable amount of spending money is tricky, especially when the prices of life's non-housing essentials also vary widely by market."
Los Angeles homeowners are further impacted by substantial income taxes.
Affordability across the US
The impact of rising home prices and mortgage rates meant that affordability worsened in 2018 but this year has seen improvement in both.
A mortgage payment on the typical home in the US required 17.5% of the median income in Q4 2018, up from 15.4% a year earlier. Meanwhile, a typical renter paid 27.7% of their income to their landlord, down from 28.1% in Q4 2017.
|
Metropolitan Area |
Leftover Income |
Leftover |
% Income Spent |
% Income |
|
United States |
$52,231 |
$45,781 |
17.5% |
27.7% |
|
New York, NY |
$57,749 |
$50,474 |
27.2% |
36.4% |
|
Los Angeles-Long Beach- |
$41,426 |
$39,926 |
43.7% |
45.7% |
|
Chicago, IL |
$60,395 |
$51,417 |
15.5% |
28.1% |
|
Dallas-Fort Worth, TX |
$58,484 |
$50,849 |
16.9% |
27.7% |
|
Philadelphia, PA |
$60,116 |
$52,461 |
16.0% |
26.7% |
|
Houston, TX |
$55,963 |
$47,200 |
15.3% |
28.6% |
|
Washington, DC |
$83,642 |
$77,738 |
19.3% |
25.0% |
|
Miami-Fort Lauderdale, FL |
$42,533 |
$33,783 |
24.7% |
40.2% |
|
Atlanta, GA |
$57,289 |
$50,886 |
15.7% |
25.2% |
|
Boston, MA |
$67,165 |
$61,467 |
25.4% |
31.8% |
|
San Francisco, CA |
$60,039 |
$66,423 |
44.2% |
38.3% |
|
Detroit, MI |
$53,114 |
$46,379 |
12.9% |
24.0% |
|
Riverside, CA |
$47,244 |
$41,899 |
27.7% |
35.8% |
|
Phoenix, AZ |
$51,643 |
$47,725 |
20.1% |
26.2% |
|
Seattle, WA |
$61,931 |
$59,523 |
28.1% |
30.9% |
|
Minneapolis-St Paul, MN |
$66,794 |
$59,810 |
16.5% |
25.2% |
|
San Diego, CA |
$51,259 |
$49,293 |
36.4% |
38.8% |
|
St. Louis, MO |
$56,030 |
$50,475 |
12.8% |
21.5% |
|
Tampa, FL |
$43,549 |
$37,072 |
19.5% |
31.4% |
|
Baltimore, MD |
$66,463 |
$58,730 |
16.6% |
26.3% |
|
Denver, CO |
$60,569 |
$55,445 |
24.8% |
31.1% |
|
Pittsburgh, PA |
$54,214 |
$48,172 |
11.6% |
21.4% |
|
Portland, OR |
$56,286 |
$53,567 |
25.8% |
29.4% |
|
Charlotte, NC |
$53,545 |
$47,810 |
15.9% |
24.9% |
|
Sacramento, CA |
$50,872 |
$48,370 |
28.3% |
31.9% |
|
San Antonio, TX |
$49,100 |
$42,372 |
16.2% |
27.7% |
|
Orlando, FL |
$45,543 |
$39,225 |
20.3% |
31.4% |
|
Cincinnati, OH |
$56,022 |
$48,762 |
12.9% |
24.2% |
|
Cleveland, OH |
$47,058 |
$40,379 |
13.2% |
25.5% |
|
Kansas City, MO |
$56,475 |
$50,462 |
14.3% |
23.4% |
|
Las Vegas, NV |
$46,338 |
$43,788 |
22.9% |
27.1% |
|
Columbus, OH |
$57,453 |
$50,568 |
14.0% |
24.3% |
|
Indianapolis, IN |
$53,919 |
$47,300 |
13.0% |
23.7% |
|
San Jose, CA |
$62,335 |
$81,880 |
49.9% |
34.1% |
|
Austin, TX |
$61,660 |
$56,491 |
19.7% |
26.5% |
