By December, Austin residents will have to spend 30.1% of their income to pay a monthly home mortgage, making its residential real estate market the sixth least affordable among the largest U.S. cities, according to a new study.
An analysis by Zillow.com, a rental and real estate marketplace, found that by the end of this year, the only metro areas less affordable than Austin will be located in California’s pricey cities.
As of June, Austin homeowners on average spent 25.3% of their income on mortgages, according to the study. In Zillow’s calculations, mortgage payments include principal and interest on loans, as well as property taxes and home insurance.
The study concluded that the increases in housing affordability in recent years resulting from falling interest rates are rapidly evaporating due to rising housing costs nationwide. As of June, U.S. homeowners spent 19.4% of their income on housing – a level of spending that is expected to hit 23.1% by December, according to Zillow.
The company views mortgage costs that exceed 30% of household income as a potential financial burden.
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Home Affordability in the Largest U.S. Metro Areas
| Mortgage Affordability Rank (for Dec. 2021) 1=Least Affordable | Metropolitan
Area | Mortgage
Affordability - June 2021 | Mortgage
Affordability at 2.975% Rates - Dec. 2021 | Mortgage
Monthly Payment at 2.975 rates - Dec. 2021 | Rent
Affordability - June 2021 | Rent
Affordability - Dec. 2021 |
| 1 | San Francisco, CA | 39.30% | 43.10% | $5,925 | 28.20% | 28.60% |
| 2 | San Jose, CA | 36.80% | 40.90% | $6,617 | 27.60% | 27.60% |
| 3 | Los Angeles-Long Beach-Anaheim, CA | 34% | 37.20% | $3,724 | 33.20% | 33.50% |
| 4 | San Diego, CA | 32.20% | 36.40% | $3,663 | 36.40% | 37.10% |
| 5 | Riverside, CA | 27.50% | 30.90% | $2,396 | 33.90% | 35% |
| 6 | Austin, TX | 25.30% | 30.10% | $3,021 | 28.60% | 29.60% |
| 7 | Seattle, WA | 26.80% | 29.90% | $3,241 | 29.90% | 30.20% |
| 8 | Sacramento, CA | 25% | 27.80% | $2,585 | 33.40% | 34.20% |
| 9 (tie) | Miami-Fort Lauderdale, FL | 25.60% | 27.60% | $1,876 | 39.40% | 40.30% |
| 9 (tie) | Salt Lake City, UT | 24.30% | 27.60% | $2,397 | 27.90% | 28.10% |
| 11 | Denver, CO | 24.40% | 27.40% | $2,569 | 31.80% | 32.20% |
| 12 (tie) | New York, NY | 25.40% | 27.20% | $2,845 | 31.10% | 31.80% |
| 12 (tie) | Portland, OR | 24.80% | 27.20% | $2,499 | 29% | 29.20% |
| 14 | Boston, MA | 24.80% | 27% | $2,943 | 33.30% | 33.80% |
| 15 | Tampa, FL | 22.60% | 25.40% | $1,604 | 32.80% | 34.30% |
| 16 | Providence, RI | 23.10% | 24.80% | $2,082 | 29.50% | 29.60% |
| 17 | Phoenix, AZ | 21.50% | 24.20% | $1,818 | 29.20% | 31.70% |
| 18 | Las Vegas, NV | 20.40% | 23.10% | $1,712 | 33.10% | 36.60% |
| 19 | Dallas-Fort Worth, TX | 19.80% | 22.10% | $1,883 | 26.70% | 27.10% |
| 20 | San Antonio, TX | 19.50% | 21.80% | $1,460 | 27.80% | 27.40% |
| 21 | Orlando, FL | 19.90% | 21.60% | $1,569 | 34.70% | 36.50% |
| 22 | Nashville, TN | 19.50% | 21.30% | $1,643 | 26.80% | 26.40% |
| 23 | Charlotte, NC | 18.80% | 20.70% | $1,481 | 28% | 28.60% |
| 24 | Jacksonville, FL | 18.80% | 20.60% | $1,471 | 27.80% | 28.40% |
| 25 (tie) | Minneapolis-St Paul, MN | 18.40% | 19.70% | $1,785 | 30.40% | 30.40% |
| 26 (tie) | Washington, DC | 18.60% | 19.70% | $2,361 | 29.30% | 29.90% |
| 27 | New Orleans, LA | 18.60% | 19.60% | $1,198 | 32.80% | 33% |
| 28 | Hartford, CT | 17.90% | 19.20% | $1,668 | 30.70% | 30.90% |
| 29 (tie) | Philadelphia, PA | 17.70% | 18.90% | $1,642 | 30.60% | 30.20% |
| 29 (tie) | Raleigh, NC | 17.00% | 18.90% | $1,698 | 25.90% | 25.60% |
| 31 | Houston, TX | 17.20% | 18.80% | $1,567 | 28.80% | 29% |
| 32 | Chicago, IL | 17.40% | 18.70% | $1,606 | 30.40% | 30.90% |
| 33 | Columbus, OH | 16.80% | 18.20% | $1,444 | 24.60% | 24.30% |
| 34 | Atlanta, GA | 16.30% | 18% | $1,498 | 28.80% | 29.40% |
| 35 | Detroit, MI | 16.30% | 17.90% | $1,230 | 26.90% | 26.60% |
| 36 | Virginia Beach, VA | 16.80% | 17.70% | $1,336 | 29% | 29.90% |
| 37 | Baltimore, MD | 16.60% | 17.50% | $1,648 | 30.30% | 30.10% |
| 38 | Richmond, VA | 16.30% | 17.10% | $1,326 | 28.90% | 29.20% |
| 39 (tie) | Cleveland, OH | 15.50% | 17% | $1,141 | 26% | 25.40% |
| 39 (tie) | Milwaukee, WI | 15.80% | 17% | $1,387 | 24.30% | 23.70% |
| 41 | Kansas City, MO | 16% | 16.90% | $1,324 | 24.60% | 24.50% |
| 42 | St. Louis, MO | 15% | 16.30% | $1,174 | 24.40% | 24.10% |
| 43 | Pittsburgh, PA | 14.80% | 16.10% | $1,099 | 26.70% | 27.40% |
| 44 | Memphis, TN | 14.60% | 15.50% | $1,029 | 30.50% | 31.20% |
| 45 | Cincinnati, OH | 14.50% | 15.40% | $1,208 | 26.30% | 26.30% |
| 46 | Indianapolis, IN | 14.20% | 15% | $1,122 | 25.50% | 25.90% |
| 47 (tie) | Oklahoma City, OK | 13.70% | 14.60% | $990 | 27.30% | 27.30% |
| 47 (tie) | Louisville-Jefferson County,
KY | 14.10% | 14.60% | $1,048 | 25.20% | 24.90% |
| 49 | Birmingham, AL | 13.50% | 14.10% | $919 | 25.70% | 25.90% |