Suburbs in some large metros face heaviest financial burden

by Steve Randall09 Oct 2018

A new analysis shows that home buyers in the suburbs of America’s largest metros are some of the least affordable markets.

Zillow’s research finds that nationally, suburbs require a lower share of household income (20.2%) for monthly mortgage payments than urban areas (26.5%) with those buying in rural areas needing the lowest share (13.4%).

This is also true in many major metros; in Seattle for example, metro buyers need to commit 40.4% of their income to housing costs, compared to 27.4% in the suburbs, and 24.4% in rural areas.

However, in 17 of the 35 top metros buyers would find the suburbs a greater financial burden.

This includes San Diego, where urban living is the most affordable with a 35% share of income required for mortgage payments, rural taking 37.3%, and suburban requiring 40.9%.

Metropolitan
Area

% Income
Spent on
Mortgage
Payments –
Rural

% Income
Spent on
Mortgage
Payments –
Suburban

% Income
Spent on
Mortgage
Payments –
Urban

% Income
Spent on
Rent –
Rural

% Income
Spent on
Rent –
Suburban

% Income
Spent on
Rent –
Urban

United States

13.4%

20.2%

26.5%

23.9%

31.8%

36.8%

New York, NY

21.0%

27.4%

40.0%

34.8%

40.8%

36.9%

Los Angeles-Long
Beach-Anaheim,
CA

21.9%

46.2%

45.3%

36.0%

48.6%

48.0%

Chicago, IL

13.4%

16.4%

15.3%

24.5%

30.0%

27.9%

Dallas-Fort
Worth, TX

13.6%

16.7%

26.8%

26.1%

29.2%

38.8%

Philadelphia, PA

17.9%

18.7%

9.8%

28.0%

30.5%

20.9%

Houston, TX

13.2%

14.6%

18.3%

28.3%

29.5%

29.8%

Washington, DC

16.4%

19.6%

24.8%

21.1%

25.8%

29.8%

Miami-Fort
Lauderdale, FL

19.0%

26.1%

23.9%

37.4%

43.9%

41.3%

Atlanta, GA

11.8%

15.5%

24.6%

21.7%

26.4%

35.4%

Boston, MA

20.0%

26.2%

28.8%

28.8%

33.5%

34.7%

San Francisco, CA

50.9%

35.4%

44.5%

43.8%

35.1%

39.3%

Detroit, MI

18.6%

15.7%

4.1%

25.3%

27.8%

15.3%

Riverside, CA

13.9%

29.3%

18.8%

23.1%

38.5%

27.7%

Phoenix, AZ

17.3%

21.4%

17.3%

23.7%

27.8%

24.6%

Seattle, WA

24.4%

27.4%

40.4%

29.0%

31.3%

35.3%

Minneapolis-St
Paul, MN

15.0%

17.5%

16.9%

22.7%

26.9%

26.2%

San Diego, CA

37.3%

40.9%

35.0%

39.9%

43.0%

39.1%

St. Louis, MO

11.9%

13.0%

10.4%

20.5%

24.1%

18.9%

Tampa, FL

15.7%

19.5%

16.7%

27.3%

31.9%

29.5%

Baltimore, MD

21.3%

17.2%

6.0%

28.3%

26.5%

18.3%

Denver, CO

27.8%

25.8%

26.7%

32.7%

32.7%

32.4%

Pittsburgh, PA

12.3%

12.8%

8.7%

20.8%

22.9%

20.9%

Portland, OR

24.9%

26.2%

28.2%

29.8%

31.3%

31.1%

Charlotte, NC

12.0%

16.8%

31.4%

21.3%

26.5%

34.5%

Sacramento, CA

32.5%

28.2%

37.1%

35.4%

33.0%

36.3%

San Antonio, TX

20.9%

14.7%

11.3%

31.6%

27.9%

24.1%

Orlando, FL

20.6%

21.1%

11.7%

31.5%

32.5%

26.2%

Cincinnati, OH

12.5%

12.9%

9.5%

23.0%

25.2%

21.4%

Cleveland, OH

16.9%

13.6%

6.3%

30.8%

27.1%

19.2%

Kansas City, MO

13.0%

13.6%

7.2%

23.3%

25.9%

15.9%

Las Vegas, NV

20.1%

24.0%

16.8%

26.9%

28.5%

25.1%

Columbus, OH

14.6%

14.4%

11.4%

25.5%

26.8%

20.9%

Indianapolis, IN

11.3%

12.2%

6.2%

23.4%

24.6%

15.6%

San Jose, CA

23.2%

58.2%

53.8%

24.1%

36.6%

35.6%

Austin, TX

14.0%

18.4%

26.4%

23.9%

27.2%

31.2%

 

 


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