Here is yet another way to look at the financial challenges of California homeownership: Recurring costs eat up more than half of household income for roughly 1 in 6 owners statewide.
My trusty spreadsheet identified this affordability challenge by analyzing 2024 Census Bureau housing data for the 50 states and the District of Columbia. These latest figures detail swings in who owns their residence, how much they pay a month, and how many owner households are financially swamped by expenses. That’s when mortgage payments – one-third of Californians don’t have a home loan – plus items such as insurance, utilities and association dues top 50% of an owner’s income.
By this math, 15% of California owners were deeply stressed in 2024 – the highest share among the states and well above the nation’s 9% slice.
After California comes Florida, New York and Hawaii at 13%, and Rhode Island at 12%. Texas was No. 18 at 10%. The nation’s least-stressed owners live in North Dakota, where just 5% pay 50%-plus. Next are South Dakota and Iowa at 6%, and Indiana and West Virginia at 7%.
These deeply stressed owners are a large group.
Despite all the economic challenges, don’t forget that California is the nation’s largest ownership state with 7.7 million living in their own home. Next are Texas at 7.1 million, Florida at 6.2 million, New York at 4.3 million and Pennsylvania at 3.7 million.
Yet the high financial strains add up to 1.1 million California households paying more than half their income to own, also tops among the states. No. 2 is Florida at 830,700, then Texas at 700,000, New York at 539,400, and Illinois at 334,000.
Or look at it this way: California has 9% of the nation’s 86.6 million owners. But the Golden State has 13% of the 8.6 million Americans who are highly burdened by ownership costs.
Owners’ remorse?
Ponder what it costs to own. The typical Californian homeowner pays an estimated $2,280 monthly – 70% above the $1,340 national norm.
Only D.C. is costlier at $2,610 a month. After California comes New Jersey at $2,220, Massachusetts at $2,170, and Hawaii at $2,080. The cheapest places to own are West Virginia at $800, Arkansas and Mississippi at $930, Kentucky at $1,010, and Alabama at $1,020.
Texas was No. 18 at $1,540 and Florida, No. 17, at $1,550.
These costs have soared since coronavirus upended the economy. Yes, the pandemic era’s once historically low mortgage rates offered significant savings to many owners. Other expenses, such as property taxes and insurance, have since skyrocketed across the nation.
Costs rose 23% for all California owners since 2019. However, that jump was just the 29th largest among the states and equaled the nation’s five-year expense leap.
Florida had the largest increase at 42%, then Colorado, Utah and Texas at 32%, and Oklahoma at 31%. Smallest cost gains? New Jersey at 14%, Connecticut and Vermont at 15%, Delaware at 16%, and Hawaii at 17%.
Renters’ plight
Contrast owners to renters.
Statewide, 27% of California tenants pay 50%-plus of their income for rent. That slice is topped only by Florida’s 29% and equals Nevada’s share. Their distress levels are not far above the nation’s 24% share
California’s median costs for all renters ran $2,104 a month – that’s 60% above the nation’s $1,319 and the largest expense among the states. Since 2019, California tenants have seen their expenses jump 30%.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
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