The average homeowner in Oklahoma must work 72 hours each month to keep a roof overhead, a new report finds.
The bad news is Oklahomans are spending nearly two weeks’ salary on their mortgage payment, considerably more than the long-standing rule that people should spend no more than 28% of their income on housing.
The good news is that’s the third best outcome in the nation. Only homeowners in Mississippi (71 hours) and West Virginia (58 hours) work less to pay their mortgage, according to the analysis by House.Method.com.
Most American homeowners are spending an outrageous portion of their incomes on housing, whether that be mortgages or rent, the report states. Current inflation trends have homeowners far exceeding the 28% rule – sometimes handing over 64% of their monthly incomes on mortgage payments.
Based on data from Zillow, the median home value in the United States currently is $355,852, with a monthly mortgage payment of $2,431. Considering that the average wage is $22 per hour, Americans must work approximately 110 hours per month to afford this payment, the analysis finds.
That means most Americans need to work nearly three out of four 40-hour weeks each month just to afford their mortgage. In other words, many single-income families cannot afford to buy a house.
The report found the average home price in Oklahoma is $182,000 with an average mortgage payment of $1,306. Since the average hourly wage in Oklahoma is $18 – according to the U.S. Bureau of Labor Statistics – 72 hours of pay goes toward that payment.
Hawaii ranks as the most expensive state for mortgages, requiring residents to work about 263 hours per month to afford their monthly payments of $6,030. Coming in second is California, where residents must work 227 hours to pay $5,241 each month.
The District of Columbia has the next largest mortgage payment ($4,713), but it ranks 16th because it also has the largest median hourly wage ($38), which means residents need to work 123 hours to make that payment.
The report also ranked the 50 most expensive cities to afford a mortgage. Oklahoma City ranked 45th with 74 hours of work needed to pay the $1,360 monthly mortgage on a $231,900 home.
Seven of the 10 most expensive cities are on the West Coast. San Francisco topped the list with 249 hours of work hours needed to pay the $7,424 monthly mortgage.
The average American living in San Francisco would need a full-time job (40 hours/week) plus a part-time job (20 hours/week) just to be able to make their mortgage payment, the report notes.
San Jose comes in second with residents needing to work 247 hours – two hours less – to afford a higher rate of $8,982 per month. That’s because the median hourly wage is higher, $36 compared to $30.
The least expensive city on the list is Pittsburgh, where it takes 57 hours of work to pay the average mortgage of $1,269.