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States where people spend most of their paycheck on housing

  • States where people spend most of their paycheck on housing

    While receiving a paycheck is amongst the most euphoric experiences in the lives of workers, the excitement can quickly dwindle away when one realizes how much of that check has to be spent on necessities. The average American spends more than $7,000 a year on food, $9,000 on transportation, $11,000 combined in insurance and health care, and $10,000 on taxes. This does not leave a lot of wiggle room for the more fun things in life, especially when considering these costs do not even address the immense financial burden of putting a roof over one’s head. While the average American spends nearly $19,000 annually on housing, people living in various places around the country budget their earnings differently, especially when it comes to investing in real estate.

    Using survey data from Microsoft News, Stacker compiled a list of the states where people spend the greatest percentage of their paychecks on housing. All 50 states are ordered according to the percentage of respondents who spend 50% or more of their paychecks toward their home, with the state spending the highest percentage ranked first. Read on to see how each state stacks up against the rest of the nation.

    Microsoft News Poll results are analyzed to represent the U.S. adult population or specific sub-demographics. Microsoft News describes the U.S. adult population by thousands of combinations of age, gender, education, location and several other demographics. Microsoft News takes the raw polling data and models how demographic groups  answered each question, and then projects those answers onto the true distribution of the demographic groups. The method was tested in the 2016 election and proven to be as accurate as other polling methods -- more details can be found here.

     

  • #50. North Dakota

    Percent of income that goes to housing:

    50% or more: 4.2%
    35%–50%: 8.5%
    25%–35%: 22.8%
    10%–25%: 29.9%
    Less than 10%: 34.6%

    For a place where most people live in densely populated urban areas or on rural farmland, cities in the northernmost Great Plains state have experienced a great deal of economic prosperity as a result of the ever-increasing prevalence of the energy industry.

  • #49. South Dakota

    Percent of income that goes to housing:

    50% or more: 5.2%
    35%–50%: 10.2%
    25%–35%: 25.2%
    10%–25%: 30%
    Less than 10%: 29.4%

    The immense desirability of Sioux Falls, the largest city in the Mount Rushmore State, from a buyer standpoint has driven up housing costs, which has ultimately led to increased competition for homes in the lower price range and has made entering the market much more difficult.

  • #48. Kansas

    Percent of income that goes to housing:

    50% or more: 5.3%
    35%–50%: 10.3%
    25%–35%: 25.2%
    10%–25%: 29.8%
    Less than 10%: 29.4%

    The Kansas Association of Realtors president Kathy Minden proudly reported that 2017 was the “sixth straight year for rising home sales across the state,” with sales increasing approximately 1.1% over the 2016 figure.

  • #47. Missouri

    Percent of income that goes to housing:

    50% or more: 5.3%
    35%–50%: 10.4%
    25%–35%: 25.1%
    10%–25%: 29.8%
    Less than 10%: 29.4%

    One of the fastest-growing big cities in America, Kansas City is a metropolis that receives rave reviews as a result of great amenities, high graduation rates, and an affordable cost of living. Kansas City’s increasing popularity has reached the point that some are referring to it as the “best big city to live in.”

  • #46. Nebraska

    Percent of income that goes to housing:

    50% or more: 5.4%
    35%–50%: 10.6%
    25%–35%: 25.6%
    10%–25%: 29.9%
    Less than 10%: 28.6%

    Nebraska has one of the healthier housing markets in the nation, as Zillow extends it a score of 9 out of 10. This has to do, in a large part, with the fact that Nebraska boasts a 0.8% mortgage delinquency rate, exactly half the national average of 1.6%.

  • #45. Wisconsin

    Percent of income that goes to housing:

    50% or more: 5.5%
    35%–50%: 13.8%
    25%–35%: 23.6%
    10%–25%: 30.6%
    Less than 10%: 26.5%

    Houses are simply “flying off the market” in Wisconsin’s state capital Madison, as it’s more widely being recognized as one of the best places to work, study, and raise a family. Home to the main campus of the University of Wisconsin, the city, which straddles Lake Monona and Lake Mendota, is considered one of the healthiest, greenest, and safest cities the country has to offer.

  • #44. Mississippi

    Percent of income that goes to housing:

    50% or more: 5.7%
    35%–50%: 12.3%
    25%–35%: 18.5%
    10%–25%: 32.5%
    Less than 10%: 31%

    The new bill is expected to hurt the housing market in a handful of states, and the Magnolia State is no exception. The deduction limit on new homes being cut to $750,000 is expected to cause the high-value market to take an especially strong hit.

  • #43. Indiana

    Percent of income that goes to housing:

    50% or more: 5.7%
    35%–50%: 14.2%
    25%–35%: 24%
    10%–25%: 30.2%
    Less than 10%: 25.9%

    According to Douglas M. McCoy, the director of the IU Center for Real Estate Studies at the Kelley School of Business, the market for single-family housing in Indiana is expected to remain as strong as it was in the year prior. He attributes this not only to steady job growth, but also to positive “economic fundamentals.”

  • #42. Iowa

    Percent of income that goes to housing:

    50% or more: 5.7%
    35%–50%: 11%
    25%–35%: 25.9%
    10%–25%: 29.7%
    Less than 10%: 27.6%

    While Iowa’s big metropolitan areas like Des Moines and Cedar Rapids are experiencing big booms, Iowa’s more rural areas are seeing a serious shortage of inventory, a problem which builders in the state are taking active efforts to rectify.

  • #41. Michigan

    Percent of income that goes to housing:

    50% or more: 5.8%
    35%–50%: 14.3%
    25%–35%: 23.8%
    10%–25%: 30.3%
    Less than 10%: 25.8%

    Buying patterns are expected to change especially in southeast Michigan, both for prospective homeowners in the Detroit area, as well as in surrounding suburban communities. While colonial-style homes may fall by the wayside, ranches are believed to be on the rise.

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