Housing Costs Ease for Homeowners
According to data released recently by the American Community Survey (ACS), the “burden” of housing costs has decreased for U.S. homeowners since the Great Recession peaked in 2008. The same is not true for renters—data show that burden to be stagnant.
What is a “burdened” household? Those that spend at least 35% of their monthly income on housing costs, which can include mortgage, utilities, real estate taxes, property insurance and condominium or mobile home fees.
In 2018 20.9% of homeowners with a mortgage were considered burdened—a decrease of approximately eight percentage points from a decade ago. In contrast, an estimated 40.6% of rental unit residents spent 35% or more of their monthly household income on rent and utility bills last year.
Here are some additional highlights:
- In 2008, 43 metro areas reported that at least 40% of homeowners with a mortgage were burdened. There were none that fell in this category in 2018.
- In 2018, 53 metro areas reported that over 10% of homeowners without a mortgage were burdened, compared with 85 metro areas in 2008.
- The number of metro areas where more than 40% of renters were burdened in 2018 was 81, the same amount as a decade earlier.
The ACS is an ongoing survey that publishes annual estimates on a range of housing, demographic, social and economic characteristics. ACS estimates from 2008 were based on data corrected after they were originally released. For more information, visit the U.S. Census Bureau.
