100 largest cities take home more cash
American incomes are on the rise. According to a new analysis, income growth has outpaced housing costs in all 100 of the country’s biggest cities.Verify your new rate (May 31st, 2020)
Take-home cash on the rise
A new analysis from MagnifyMoney shows that incomes are finally outpacing housing cost growth. In fact, in all 100 of the nation’s largest metros, the median household has the most post-housing cash in three years.
And that’s true for both homeowners and renters.
As MagnifyMoney’s Elyssa Kirkham explains, “Compared to three years ago, the typical household in these cities has more money left over after paying for housing. In other words, even though housing costs have risen over the last three years, the dollar amount of wages have grown faster and exceeded the dollar pricing increases for both renting and owning a home.”
In San Francisco, homeowners have $12,178 more left over after housing costs, while renters have $9,982 more.
Other cities with serious post-housing gains include San Jose, California ($9,909 more per year across all households); Seattle ($7,136); Austin, Texas ($6.737); Portland, Oregon ($6,733); Denver ($6,418); Boston ($6,336); Bridgeport, Connecticut ($6,178); Nashville, Tennessee ($5,984); and Salt Lake City ($5,853).
Improvements across the board
Even the cities with the smallest gains are still seeing serious improvement. In Albuquerque, New Mexico for example, homeowners make $2,194 more, while renters make $1,438.
“Rent costs are increasing at a faster rate than costs for households who own their own homes and still have a mortgage in every metro,” Kirkham said. “Even so, wage growth has outstripped those increases.”
In some cities, median housing costs have actually decreased in the last three years. This occurred in Las Vegas (down $216); Detroit (-$144); Jacksonville, Florida (-$36); Atlanta (-$24); Birmingham, Alabama (-$24); and Chicago (-$24).
Get today’s mortgage rates
Are you ready to take advantage of rising wages and buy a home? Then shop around and see what mortgage rates you qualify for today.Verify your new rate (May 31st, 2020)