Housing Costs

Monthly Bills Straining Americans’ Finances

Posted on by TMN Editor
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…

Payments Surpass Cost-Burdened Threshold As Affordability Sinks To Lowest Point In 35 Years

Posted on by TMN Editor
Housing payments have surpassed the dreaded 30% cost-burdened threshold thanks to the 30-year fixed rate’s recent half-point jump. Black Knight reports that it now costs $2,103 to make the principal and interest (P&I) payment on an average-priced home with a 20% downpayment. That equates to 36.2% of the median household income and sinks affordability to its lowest level in more than 35 years. Payments as a percentage of income are now higher than the previous record of 34.1% in July 2006, and significantly up from the long-term average of 25.1%. The Department of Housing and Urban Development defines cost-burdened families as those “who pay more than 30% of their income for housing” and “may have difficulty affording necessities such as…