A new study by Today’s Homeowner, examined the state of housing across the country by looking at data from the U.S. Census Bureau, Zillow, and Freddie Mac to calculate the share of income spent on mortgage payments for every state. As Today’s Homeowner states, policymakers suggest homeowners should spend 30 percent or less of their income on housing. However, this study reports that Americans are spending way more than suggested and at least 2 out of 5 states, monthly costs exceed the rule of thumb of keeping housing costs under 30 percent of income.
For Tennessee the findings show:
Tennessee Ranks #31 in the Nation for being an affordable place to live
With a median household income of $4,975 and an average mortgage cost of $1,507, Tennesseans spend 30.3% of their income on housing.
At the national level, the median homeowner spent 28.4% of their income on mortgage costs.
The Midwest was considered the most affordable region, where residents spent only 22% of their income on mortgage payments. The South was next at 28%, followed by the Northeast at 30%. The West was quite an outlier, where residents spent 41% of their income on mortgage payments.