As the economy recovers, Americans are spending more money on housing, according to Zillow data released Friday.
While renters are paying 30.1% of their income on rent, homeowners have been reported to be spending about 15.3% of income on monthly mortgages across the nation, according to a Zillow news release.
Rising rental rates and low home interest rates has changed the landscape of the current housing market as buying a home becomes the more affordable option in some markets.
And as more Americans start getting stable paychecks, more households are being formed, but the housing industry is struggling to meet the demand, Stan Humphries says in the release.
“As a result, the competition for those homes that are available can often be fierce, driving up prices and contributing to worsening affordability,” he says. “More construction will help ease the crunch, and getting a mortgage is also getting easier, which will help more current renters transition to homeownership and further ease rental inventory shortages. But these fixes won’t happen overnight.”
Metros with Highest Mortgage Spending
Los Angeles, 40.1%
San Jose 39.5%
San Francisco, 39.2%
San Diego, 34%
New York 26.2%
Riverside, Calif. 23.8%