As inflation ravages American bank accounts, monthly bills are becoming a strain on homeowners’ finances.
New data from fintech doxo shows that the average U.S. household spends 35% of their median income on essential household bills– roughly $2,046 per month, and $25,000 a year.
But the actual impact varies hugely by state. Doxo analyzed typical household bills such as auto loans, utilities, cable and internet, and alarms and security, along with a monthly mortgage payment or rent, to gauge a state’s affordability.
Hawaii, the most expensive state for household bills, sits at a markup of 50% above the national average. At the other end of the spectrum is West Virginia at -25.2% below that average.
“As consumers navigate their household…
Co-buying has gained popularity as Americans search for ways to afford a home. But for all its benefits, it also comes at a cost.
A new survey from LendingTree found that 29% of Americans would consider co-buying a home with someone other than a spouse or significant other. That number varies by generation, broken down into 36% of Millennials, 25% of Gen Xers, and 13% of baby boomers.
Most of those open to co-buying said they would prefer to buy with a family member who wasn’t their spouse (63%), while a good friend or current roommate would suit just over half (57%).
Six-figure earners are the most likely income group to consider co-buying (38%), while those making between $35,000 and…
Despite being the largest cohort of potential homebuyers in the country, Millennials are lagging behind other generations in purchases.
That applies to Baby Boomers now – who are snatching up the few homes for sale thanks to home equity and greater savings – and Boomers when they were the same age as Millennials today. Just over 50% of Millennials owned a home in 2022, compared with 56.5% of Boomers in 1990 and 58.2% of Gen X in 2006.
Even the youngest generation, Gen Z, is tracking ahead of Millennials in homeownership at the same age.
A combination of forces has made it difficult for Millennials to become homeowners. Ongoing bouts of economic uncertainty in 2001, 2008, and today have hindered…
Homeownership remains the most significant way single women can build wealth, and more women than ever are taking advantage.
First American Financial reports that the number of single, female-headed households (including windowed, separated, or divorced) has risen by 1.4 million since 2019.
Of that group, one million are homeowners.
Female homeownership has helped the overall homeownership rate rebound since the Great Recession, with women-headed households surpassing 52% in 2022. That’s up from a post-Great Recession low point in 2016 of 50%.
Single women’s homeownership rate has outstripped men’s by about two percentage points, FirstAm says, putting them in a better long-term financial position. Homeowners have 40 times as much household wealth compared to renters, most of which is held in…
By KIMBERLEY HAAS This Labor Day weekend, some workers are wondering what happened to the American Dream of earning enough from a nine-to-five job to buy their own home — with or without the white picket fence. According to officials at the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, the median sales price of a new home in July 2022 was $439,400. The thumbnail measurement for home affordability is a house that costs roughly 2.6 years of your household income, or a 2.6 “price-to-income ratio.” Using the 2.6 price-to-income ratio, your household’s earners would need to bring in $169,000 a year to be able to afford a new home. That is higher than most U.S.…
The national average closing costs in 2021 for a single-family property refinance were up $88 YOY, but still less than 1% of the average refi loan amount, according to CoreLogic’s annual Refinance Closing Cost Report. The average closing cost was $2,375, up 3.8% from 2020’s $2,287. The average refi loan amount was $304,909. By contrast, the national average for purchase closing costs was $3,860. The main difference in closing costs between the two are owner title insurance and inspection fees common for purchase transactions, but less often required for refis. Most third-party fees were still lower for refis. “In 2021, homeowners were still able to get good deals on both interest rates and closing costs,” said Bob Jennings, executive, CoreLogic…
Millennials spend more of their monthly income on homeownership costs than other generations and are at the greatest risk of becoming house-rich and cash-poor, according to a new study from Hometap. The study, a survey of 1,000 US homeowners, found that 83% of millennials carry at least some debt, compared to 72% of baby boomers. Of everyone surveyed, 47% were negatively impacted by the pandemic, and 77% carried some debt. More than a quarter of all homeowners say they plan to tighten their budgets until their debts are paid. But as homeownership costs rise, paying down the debts may become increasingly difficult. Hometap found that 52% of homeowners spend at least 16% of their monthly income on mortgages, and 46%…
The median net worth of American households rose 17.6% between 2016 and 2019, according to a new report from the Mortgage Bankers Association’s (MBA) Research Institute for Housing America (RIHA). The report, titled The Distribution of Wealth in America Since 2016, found that median net worth increased from $103,000 in 2016 to $127,000 in 2019, the highest amount since 2007. “The increase in homeownership, and the steady rise in home values and the stock market drove the increase in middle-class wealth. The median net worth of every racial and ethnic category also increased, with the largest increases coming from Black and Hispanic households,” said Dr. John C. Weicher, author of the report and Director for the Center for Housing and…
