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New Study: U.S. States Where Homes Will Drain Your Paycheck

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CinchHomeServices.com is responsible for compiling and analyzing the data.

Photo by Breno Assis on Unsplash

  • A new analysis has examined state-by-state homeownership costs, including mortgage payments, property taxes, and maintenance fees.
  • Hawaii has the highest annual housing costs in the U.S., reaching up to $65,000.
  • In contrast, North Dakota residents pay an estimated $14,500 annually for housing – a significant difference of 348% compared to Hawaii.

A recent study shows Hawaii residents have the nation’s highest housing expenses, with costs reaching three-quarters of their income.

Home warranty experts Cinch Home Services conducted a study identifying states most susceptible to high housing costs. They analyzed average property taxes, mortgage payments, and maintenance fees for a median-priced home in each state. By calculating the total annual expense, the study revealed which states have the least financial cushion for these costs.

The states with the biggest housing expenses

Hawaii struggles with the nation’s highest housing costs. Despite an average annual take-home pay of $86,376, residents face housing expenses reaching $65,185, which consume over 75% of their income. This burden stems from high annual mortgage payments ($60,048) and maintenance costs (the national average of $2,458). However, Hawaii does benefit from the lowest property tax rate in the U.S., at 0.32%.

California ranks second in the nation for annual housing costs. Residents pay an average of $61,337, representing 71.8% of their take-home pay. Contributing factors include the state’s high median home price of $743,362, translating to a hefty $53,304 in yearly mortgage payments alone. 

 

Massachusetts follows closely in third place. Despite holding the highest average household income in the U.S. at $147,219, residents still dedicate 51.9% of their take-home pay to housing. Property taxes contribute significantly to this burden, averaging nearly $7,000 annually. 

 

Washington takes the fourth spot with a median home costing $41.4K annually in mortgage payments, exceeding the national average by 38.8%. This translates to a significant chunk of their income towards housing, with total costs reaching 54.1% of their take-home household salary.  

 

New Jersey follows closely behind Washington, with total housing costs reaching $48,000 annually. This represents 50.2% of their take-home household income. 

 

The top ten most expensive states are Colorado ($44,385), New Hampshire ($43,122), Oregon ($42,843), Utah ($42,006), and New York ($40,294). 

 

 

 

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