U.S. home sales skyrocketed during the COVID-19 pandemic – hitting a 15-year high of 6.1 million in 2021. The spike in demand, coupled with declining inventory, have put upward pressure on housing prices. Renters have not been spared, as housing has become one of the key drivers of surging U.S. inflation.
According to the Economic Policy Institute, a nonprofit think tank, a single adult can expect to pay an estimated $11,026 on housing in 2022. This amount varies across the country, however, and in many major metropolitan areas, Americans are paying thousands more than the estimated national average.
Using data from the EPI’s Family Budget Calculator, 24/7 Wall St. identified the 50 metro areas with the highest housing costs. Metro areas are ranked on 2022 estimates of housing and utility costs for a modest studio apartment.
Among the metro areas on this list, housing costs for a single adult range from about $11,700 to over $28,000. The largest share of metro areas on this list are in the West, including 13 in California alone. Higher housing costs in these places are often a reflection of what residents can afford. Most metro areas on this list have a higher median household income than the national average of $64,994. Here is a look at the income needed to be middle class in each state.
Home values also tend to be higher in areas with high housing costs, making homeownership prohibitively expensive for larger shares of the population. This may help explain why homeownership rates are lower than the 64.4% national rate in the majority of the metro areas on this list. Here is a look at the mortgage rate in America every year since 1972.
Click here to see metros where single people pay the most for housing
Click here to see our detailed methodology
Sponsored: Find a Qualified Financial Advisor:
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Source: Read Full Article