SEATTLE—Paying on a mortgage is still affordable, while rent takes up more income than ever in most major metro areas, according to a Zillow analysis of US rental and mortgage affordabilityi in the second quarter of 2015.
Rental affordability worsened over the last year, while mortgage affordability stayed essentially the same. Renters in the US can expect to put 30.2% of their monthly income toward rent – the highest percentage ever. Before the real estate bubble and bust, US renters could expect to spend about 24.4% of their incomes on rent.
Buyers should expect to pay 15.1% of their income towards mortgage payments, which is still less than what they spent historically. From 1985 through 2000, homeowners spent about 21.3% of their monthly income on mortgage payments.
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David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
