15 American Cities With the Most ‘House Poor’ Homeowners
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In the quest to understand the landscape of American homeownership, certain cities stand out for the proportion of homeowners who find themselves ‘house poor.’ This term refers to situations where individuals spend much of their income on housing costs, leaving little for other expenses.
These findings are based on a rigorous analysis of the real estate market, the U.S. Census Bureau’s American Community Survey, financial institution metrics, and comprehensive surveys. These methods identify the cities where the ‘house poor‘ phenomenon is most prevalent. The criteria for ‘house poor‘ homeowners include spending over 30% of their income on housing, high mortgage delinquency rates, and significant housing cost burdens on below-median incomes.
Hialeah, Florida
In the city of Hialeah, located in the state of Florida, 59.3% of homeowners are allocating over 30% of their income towards housing expenses, highlighting the financial strain a significant portion of the local population faces.
Los Angeles, California
The City of Angels is known for its steep housing market, making it challenging for middle-income families to keep up with housing costs without compromising other necessities.
In Los Angeles, where 48.7% of homeowners are categorized as “house poor,” approximately 179,821 households face this situation. This statistic arises in a city with a median household income of $122,032 and total median annual household expenses amounting to $35,664.
New York City, New York
The Big Apple’s high cost of living and the competitive housing market push many homeowners into the ‘house poor‘ category despite higher average incomes.
A study revealed that New York City, Los Angeles, and Miami have the highest number of homeowners living beyond their means, with over 4 in 10 homeowners classified as ‘house poor’ in these areas. In New York City, 45.3% of homeowners are deemed cost-burdened.
Miami, Florida
Miami has high living costs and below-average local incomes. The allure of beachside living comes at a price, with many homeowners dedicating a large chunk of their earnings to mortgage payments.
In Miami, a city renowned for its vibrant culture and beautiful beaches, a concerning statistic reveals that over 44.6% of homeowners are classified as ‘house poor,’ facing financial challenges due to high housing costs relative to their income.
Hollywood, Florida
Hialeah leads the list with the highest percentage of homeowners putting more than 30% of their income towards housing costs, but it’s not the only one.
Other friendly cities, such as Los Angeles (48.7%), New York City (45.3%), Miami (44.6%), and even Hollywood, Florida (44.3%), join the ranks.
Fontana, California
Fontana, California, leads the pack with an impressive 82.5% of homeowners still paying off mortgages.
Just under one in five are mortgage-free. This is following the city’s above-average monthly housing costs of $2,236, which are 34% higher than the national average.
Gilbert, Arizona
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Beyond California, the rapidly expanding Phoenix suburb of Gilbert, Arizona, takes the second spot, where 79.2% of homeowners have a mortgage.
Meanwhile, Chandler, another Phoenix suburb, comes in 7th, with 77% (or 54,712) of homeowners making monthly mortgage payments.
Moreno Valley, California
The number of homeowners with outstanding mortgages is 26,147, with a median duration of residence of 13 years.
The median monthly housing expenses are $1,991, and the percentage of homeowners with outstanding mortgages is approximately 78.9%.
Alexandria, Virginia
The number of homeowners with unpaid mortgages is 24,232, and they have lived in their homes for a median of seven years.
The median monthly housing cost is $2,684, and about 77.8% of homeowners have unpaid mortgages.
Austin, Texas
Austin’s rapid growth and popularity have led to increased housing costs, and many homeowners find themselves dedicating a large portion of their income to staying in their homes. The income growth-housing costs gap is widening as rent prices and property values rise.
Portland, Oregon
Portland’s popularity has surged in recent years, leading to a housing market that many locals find difficult to afford without compromising on savings or lifestyle.
Portland is grappling with a challenging cost-of-living issue that combines national and local hurdles: widespread inflation and stagnant wages.
Seattle, Washington
Seattle’s tech-driven housing demand has priced out many middle-income families, making it challenging to maintain a balanced budget.
According to PBS, Microsoft announced its commitment to allocate $500 million to tackle the housing crisis in Seattle, an issue that its success inadvertently contributed to.
Philadelphia, Pennsylvania
In Philadelphia, the gap between housing costs and local incomes makes it hard for many homeowners to stay afloat without becoming ‘house poor.‘ Philadelphians’ low incomes make homes less affordable.
Boston, Massachusetts
Boston’s rich history and academic hubs drive up demand for housing, putting pressure on homeowners who struggle to manage housing costs on local incomes.
The Massachusetts Housing Partnership suggests that Greater Boston currently lacks around 38,000 housing units—a number that could increase to 90,000 over the next decade if we don’t ramp up production. In a way, this dilemma stems from something we value—a decade of economic growth.
San Francisco, California
Known for its tech boom, San Francisco’s housing market is among the most expensive in the country, significantly straining homeowner finances.
Years of inadequate housing production and a thriving economy have now impacted the city. Stringent development regulations have made constructing housing challenging and time-consuming.
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