The average Oklahoma homeowner has to work 72 hours a month to keep a roof over their head, according to a new report.
The bad news is that Oklahomans are spending nearly two weeks’ pay on their mortgage payment, far more than the long-standing rule that people shouldn’t spend more than 28% of their income on housing.
The good news is that it is the third best result in the country. Only homeowners in Mississippi (71 hours) and West Virginia (58 hours) are working less to pay their mortgage, according to analysis by House.Method.com.
Most US homeowners spend an exorbitant amount of their income on housing, whether it’s mortgages or rent, the report says. Current inflation trends have homeowners far exceeding the 28% rule – sometimes spending 64% of their monthly income on mortgage payments.
According to data from Zillow, the median home value in the United States is currently $355,852, with a monthly mortgage payment of $2,431. Considering the average wage is $22 an hour, Americans need to work about 110 hours a month to afford that payment, according to the analysis.
That means most Americans have to work nearly three out of four 40-hour weeks each month just to pay their mortgage. In other words, many single-income families cannot afford to buy a home.
The report found that 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 US Bureau of Labor Statistics – 72 hours of pay goes towards this payment.
Hawaii ranks as the most expensive state for mortgages, requiring residents to work about 263 hours a month to pay their monthly payments of $6,030. California comes in second, where residents must work 227 hours to pay $5,241 a month.
The District of Columbia has the second-largest mortgage payment ($4,713), but ranks 16th because it also has the highest median hourly wage ($38), which means residents must work 123 hours to make this 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 tops the list with 249 hours of work needed to pay the monthly mortgage of $7,424.
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 having to work 247 hours — two hours less — to afford a higher rate of $8,982 per month. This is because the median hourly wage is higher, $36 compared to $30.
The cheapest city on the list is Pittsburgh, where it takes 57 hours to pay the average mortgage of $1,269.