Paying your mortgage is a necessity that millions of homeowners undertake each month. However, not all markets are created equal. Not surprisingly, real estate is a high variance industry with different markets commanding and fetching different prices.
Highest and Lowest Mortgages
Using data from the US census bureau and Zillow, an article published to Zerohedge illustrated the divide between income and mortgages.
The graph above illustrates how many hours a median income earner needs to work in order to pay own their mortgage. The biggest winners and losers:
Not surprisingly, coastal cities and major urban centers are fetching the highest home prices. We’ve previously covered the rising disparity between home prices and wages. These findings drive home that point.
In these large markets, 50%-60% of a median earner’s income is going towards their mortgage. With roughly 170 hours in a given work month, 80-90 hours per month are going solely towards housing costs.
By contrast, housing is far more affordable towards the lower end of the list. In these markets, median income earners work an average of 10% per month towards housing. On average, homeowners in these markets can pay their mortgage in less than half a week’s worth of work.
Coast to Coast: Markets Differ
These findings effectively illustrate that real estate markets vary widely on location, as does overall cost of living. What you can afford in New York might be a castle in Toledo. That’s why City vs City takes the guesswork out of real estate an puts the power of a truly precise cost of living calculator in your hands.
With home prices on the rise, markets have never been more different. Find out where you can get the most bang for your real estate buck with City vs City’s patent-pending technology. Compare income, savings, state and local taxes, and more. Our app has everything you need to make an informed choice on your next move.