What is Mortgage Stress?
Mortgage stress is generally when a homeowner’s mortgage repayment is more than 28% of their gross income. For example if you make the average income of these 100 cities of $50,723 per year, the amount of income paid towards monthly mortgage repayments if it was 28 percent of your income would be $1,183.50 on a $265,000 mortgage. Mortgage stress is present throughout the nation, but there are some major U.S. cities that have higher mortgage stress rates than others. Interest costs and the prices of homes are inflating, and salaries and wages are struggling to keep up. Forming good financial habits can help you keep a cool head when living in some of the more expensive cities throughout the United States.
Mortgage Stress Levels By Major City
When looking at major city mortgage stress levels, we took the top 100 most populated cities and their median home value, median household income and annual mortgage repayments. We then used those numbers to find the proportion of mortgage repayments to income, to work out each city’s mortgage stress level (check out the results in the chart at the bottom of the page).
Looking at this number, we have determined that 20 of the largest 100 American cities are in mortgage stress.
When it comes to mortgage levels, California clocks in at having the most cities with mortgage stress. In fact, half of the top 20 cities dealing with mortgage stress are in California.
San Francisco is at the top of the list with the average mortgage repayments taking up around 61.47% of the city’s median household income. Los Angeles trails after at 50.07%, Oakland in third (49.73%), New York in fourth (47.72%), and Honolulu in fifth (44.27%).
When looking at the list of the top 100 major cities, the average mortgage repayment in proportion to income is 20.9%
For these major U.S. cities, Detroit has the lowest proportion of income to repayments, registering at a mere average of 6.12%. The second and third low-stress cities are Ohio cities Toledo and Cleveland (7.26% and 8.50% respectively), with Memphis and Fort Wayne not far behind (8.63% and 9.31% respectively).
Especially in cities with higher mortgage stress rates, homeowners should try to be as diligent as possible in saving money. If you are struggling with mortgage stress, you can try cutting out expenses where you can, and avoid making unnecessary purchases. Set a budget, and stick to it. Most importantly, opt for a house that you can afford. You want your payments to be at most 28% of your gross income. If you get a house that is within your means, you will have an easier time repaying the mortgage within a reasonable time frame. Where you live, and what city you reside in can make a big financial difference.
Mortgage stress levels in top 100 American cities
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Rank
City
Median home value
Median household income
Annual mortgage repayments*
Repayments as proportion of income
1
San Francisco, CA
$1,127,400
$78,378
$48,178
61.47%
2
Los Angeles, CA
$582,100
$49,682
$24,875
50.07%
3
Oakland, CA
$616,300
$52,962
$26,337
49.73%
4
New York, NY
$588,900
$52,737
$25,166
47.72%
5
Honolulu, HI
$627,200
$60,548
$26,803
44.27%
6
San Jose, CA
$830,000
$83,787
$35,469
42.33%
7
Long Beach, CA
$521,500
$52,944
$22,286
42.09%
8
Miami, FL
$291,800
$30,858
$12,470
40.41%
9
Boston, MA
$493,700
$54,485
$21,098
38.72%
10
Anaheim, CA
$536,300
$59,707
$22,918
38.38%
11
Santa Ana, CA
$465,700
$52,519
$19,901
37.89%
12
Houston, TX
$403,500
$45,728
$17,243
37.71%
13
Fremont, CA
$905,800
$103,591
$38,709
37.37%
14
Seattle, WA
$585,400
$67,365
$25,017
37.14%
15
San Diego, CA
$539,700
$65,753
$23,064
35.08%
16
Irvine, CA
$769,000
$99,334
$32,862
33.08%
17
Washington, DC
$516,300
$69,235
$22,064
31.87%
18
Portland, OR
$378,600
$53,230
$16,179
30.39%
19
Chula Vista, CA
$469,700
$66,110
$20,072
30.36%
20
Denver, CO
$346,500
$51,800
$14,807
28.59%
21
Reno, NV
$292,900
$46,489
$12,517
26.92%
22
Garland, TX
$323,290
$51,997
$13,815
26.57%
23
Newark, NJ
$210,600
$34,012
$9,000
26.46%
24
San Bernardino, CA
$231,000
$38,774
$9,872
25.46%
25
Riverside, CA
$331,900
$56,089
$14,183
25.29%
26
Scottsdale, AZ
$414,900
$72,455
$17,730
24.47%
27
Jersey City, NJ
$333,000
$58,907
$14,230
24.16%
28
Sacramento, CA
$274,700
$50,013
$11,739
23.47%
29
Austin, TX
$303,100
$55,216
$12,953
23.46%
30
Hialeah, FL
$197,100
$37,262
$8,423
22.60%
31
San Antonio, TX
$244,712
$46,317
$10,458
22.58%
32
Stockton, CA
$232,900
$45,347
$9,953
21.95%
33
Aurora, CO
$260,500
$52,275
$11,132
21.30%
34
Fresno, CA
$194,500
$41,455
$8,312
20.05%
35
Fort Worth, TX
$245,140
$52,492
$10,476
19.96%
36
New Orleans, LA
$168,200
$36,964
$7,188
19.45%
37
Buffalo, NY
$140,315
$31,668
$5,996
18.93%
38
Baton Rouge, LA
$169,792
$38,790
$7,256
18.71%
39
Chicago, IL
$208,300
$47,831
$8,902
18.61%
40
Nashville, TN
$203,000
$46,758
$8,675
18.55%
41
Minneapolis, MN
$217,500
$50,767
$9,295
18.31%
42
Colorado Springs, CO
$231,400
$54,228
$9,889
18.24%
43
Mesa, AZ
$205,200
$48,259
$8,769
18.17%
44
Glendale, AZ
$194,800
$46,855
$8,325
17.77%
45
Atlanta, GA
$191,300
$46,439
$8,175
17.60%
46
Phoenix, AZ
$192,900
$46,881
$8,243
17.58%
47
Tucson, AZ
$151,900
$37,149
$6,491
17.47%
48
Boise City, ID
$198,400
$49,209
$8,478
17.23%
49
Henderson, NV
$256,300
$63,830
$10,953
17.16%
50
Madison, WI
$216,500
$53,933
$9,252
17.15%
51
Norfolk, VA
$176,800
$44,150
$7,555
17.11%
52
Las Vegas, NV
$198,300
$50,903
$8,474
16.65%
53
Corpus Christi, TX
$189,625
$49,675
$8,103
16.31%
54
Raleigh, NC
$206,800
$54,532
$8,837
16.21%
55
Louisville, KY
$169,150
$44,806
$7,228
16.13%
56
Anchorage, AK
$294,900
$78,121
$12,602
16.13%
57
Richmond, VA
$155,400
$41,331
$6,641
16.07%
58
Bakersfield, CA
$213,100
$56,842
$9,107
16.02%
59
Virginia Beach, VA
$250,100
$67,001
$10,688
15.95%
60
Orlando, FL
$155,000
$41,901
$6,624
15.81%
61
Tampa, FL
$160,600
$43,740
$6,863
15.69%
62
Albuquerque, NM
$170,900
$47,413
$7,303
15.40%
63
St. Paul, MN
$173,100
$48,258
$7,397
15.33%
64
Durham, NC
$174,800
$49,585
$7,470
15.06%
65
Plano, TX
$297,600
$84,597
$12,718
15.03%
66
St. Petersburg, FL
$158,900
$45,483
$6,790
14.93%
67
Indianapolis, IN
$146,458
$42,076
$6,259
14.87%
68
Gilbert, AZ
$282,700
$81,485
$12,081
14.83%
69
North Las Vegas, NV
$183,000
$53,105
$7,820
14.73%
70
Chesapeake, VA
$241,600
$70,176
$10,325
14.71%
71
Chandler, AZ
$265,700
$77,328
$11,354
14.68%
72
Philadelphia, PA
$126,300
$37,460
$5,397
14.41%
73
Dallas, TX
$145,600
$43,359
$6,222
14.35%
74
Cincinnati, OH
$111,700
$34,002
$4,773
14.04%
75
Lexington, KY
$158,000
$48,667
$6,752
13.87%
76
Charlotte, NC
$170,100
$53,274
$7,269
13.64%
77
Irving, TX
$162,200
$50,942
$6,931
13.61%
78
St. Louis, MO
$108,000
$34,800
$4,615
13.26%
79
Arlington, TX
$163,300
$53,055
$6,978
13.15%
80
Lincoln, NE
$151,900
$49,794
$6,491
13.04%
81
Laredo, TX
$119,000
$39,408
$5,085
12.90%
82
Jacksonville, FL
$139,000
$46,768
$5,940
12.70%
83
Greensboro, NC
$122,800
$41,518
$5,248
12.64%
84
Omaha, NE
$141,400
$48,751
$6,043
12.39%
85
Kansas City, KS
$110,400
$38,073
$4,718
12.39%
86
Winston-Salem, NC
$117,000
$40,480
$5,000
12.35%
87
Pittsburgh, PA
$111,900
$40,009
$4,782
11.95%
88
Oklahoma City, OK
$129,700
$46,996
$5,543
11.79%
89
Baltimore, MD
$115,000
$41,819
$4,914
11.75%
90
Milwaukee, WI
$96,100
$35,489
$4,107
11.57%
91
El Paso, TX
$111,300
$42,037
$4,756
11.31%
92
Columbus, OH
$117,900
$44,774
$5,038
11.25%
93
Lubbock, TX
$115,900
$44,139
$4,953
11.22%
94
Tulsa, OK
$107,300
$41,957
$4,585
10.93%
95
Wichita, KS
$112,600
$45,907
$4,812
10.48%
96
Fort Wayne, IN
$95,800
$43,994
$4,094
9.31%
97
Memphis, TN
$74,900
$37,099
$3,201
8.63%
98
Cleveland, OH
$52,100
$26,179
$2,226
8.50%
99
Toledo, OH
$56,900
$33,485
$2,432
7.26%
100
Detroit, MI
$37,400
$26,095
$1,598
6.12%
source: finder.com, zillow.com, census.gov, freddiemac.com, top 100 cities based on population *based on a 30-year mortgage repaid at average 30-year fixed rate of 3.43%