September 7, 2018
Higher home values, combined with increasing mortgage rates, are making home ownership much more difficult for homebuyers, according to Zillow’s Q2 2018 Affordability Report. Nationally, a monthly mortgage payment requires 17.5% of median income. Meanwhile, if renting is the option, the renter ends up paying 28.4% of his or her median income for a decent apartment.
The problem is more difficult for lower-income buyers and renters; while low-income buyers need close to a quarter of their income for a mortgage, lower-income renters can end up spending a whopping 62.7% of their median income on rent.
Things aren’t that much better in the four Texas metros, especially when it comes to lower-income families and housing. The chart below shows share of median income spent on housing costs, as well as the metrics for lower-income families. The figures from Q2 2017 are the most recent available.
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