Stretched thin? You’ve got company: Part II
This article was originally on a blog post platform and may be missing photos, graphics or links. See About archive blog posts.
Some conclusions in the Center for Housing Policy study released Wednesday, ‘Stretched Thin: The Impact of Rising Housing Expenses on America’s Owners and Renters, 2008,’ come from more recent data than the 1996-to-2006 study period.
Although home prices are declining, rents are expected to continue to rise as the economy struggles. Utility costs, not surprisingly, also are on the rise. (From 1996 to 2006, utility bills rose 43%, while the median homeowner income rose 36%. Utilities eat up about 5% of homeowner income.) And transportation costs will continue upward. So much for having bought on the outskirts of employment centers, where homes were more affordable.
Delving further into the study, a regional comparison of five metro areas showed that in Los Angeles homeowners were spending 49.5% of their income on principal and interest payments in 2006; their Boston counterparts, 31.7%; Chicago, 26.5%; Atlanta, 20%; and Houston, 18.9%. No wonder we’ve got problems.
-- Lauren Beale
Your thoughts? Comments?
