Rising Housing Costs Outpace Incomes

The cost of housing has increased faster than the average income over the past five years, causing homeowners and renters alike to pay a larger percentage of their salary in housing costs. A survey published in October by the U.S. Census Bureau finds that 34.5 percent of homeowners spend more than 30 percent of their income on their mortgage, up 5 percent since 2000. The percentage of renters spending more than 30 percent of their income on rent has risen to 46 percent, a 6.7-percent increase. U.S. residents face an increased housing burden in virtually all areas of the country, although Californians were hit the hardest, paying nearly 48 percent of their income on housing. (source The Residential Specialist) January 2007