Markets
How Many Hours Americans Need to Work to Pay Their Mortgage
How Many Hours Americans Need to Work to Afford a Home
When it comes to the cost of living in cities, a general rule of thumb is that housing prices are much higher in the country’s economic and population hubs, especially in the cities along the coasts.
Particularly in recent years, prices have been pushed sky-high in places like New York City or San Francisco through a combination of limited supply of new homes, increasing demand, shifting demographics, and government regulations.
Putting it Into Perspective
Today’s visualization from HowMuch.net applies a common denominator to compare 97 of the biggest cities in the United States. Using a measure of median household income against the average mortgage payment in each city, we get a gauge of how many hours must be worked each month just to pay down the house.
The visualization uses data from the U.S. Census for household income and Zillow for median home listing price, while calculating mortgage payments based on a standard 30-year term.
The Results
Using the above method to compare the amount of hours it takes to pay down a monthly mortgage, we see some interesting contrasts in the country.
Here are the five most expensive cities in the United States for housing:
Rank | City | Median Income | Median Listing | Hours of Work to Pay Mortgage |
---|---|---|---|---|
#1 | New York City | $53,373 | $798,000 | 113.5 |
#2 | Los Angeles | $50,205 | $748,000 | 112.4 |
#3 | Miami | $31,051 | $449,000 | 109.4 |
#4 | San Francisco | $82,294 | $1,150,000 | 106.7 |
#5 | Boston | $55,777 | $699,000 | 94.7 |
With about 170 hours in a normal work month, the average people in these cities are spending 50% or more of their income just to pay down their mortgages. It’s worst in New York City and Los Angeles, where at least 65% of income is going towards housing.
These cities stand in stark contrast to the five cheapest cities based on hours of work needed:
Rank | City | Median Income | Median Listing | Hours of Work to Pay Mortgage |
---|---|---|---|---|
#93 | Baltimore | $42,241 | $139,000 | 24.9 |
#94 | Buffalo | $31,918 | $90,000 | 21.4 |
#95 | Cleveland | $26,150 | $70,000 | 20.3 |
#96 | Memphis | $36,445 | $88,500 | 18.4 |
#97 | Toledo | $33,687 | $74,900 | 16.9 |
In a city like Memphis, TN it takes only 18.4 hours of work a month to pay down the average mortgage. That’s equal to only about 10% of monthly household income.
Coastal Disparity
Interestingly, even though coastal hubs have high prices relative to the cities in the middle of the country, they differ quite widely against each other. This discrepancy does not necessarily show in terms of ranking, but more in terms of the actual hours of work needed.
Rank | City | Median Income | Median Listing | Hours of Work to Pay Mortgage |
---|---|---|---|---|
#1 | New York City | $53,373 | $798,000 | 113.5 |
#2 | Los Angeles | $50,205 | $748,000 | 112.4 |
#4 | San Francisco | $82,294 | $1,150,000 | 106.7 |
#5 | Boston | $55,777 | $699,000 | 94.7 |
#10 | San Jose | $84,647 | $825,000 | 73.5 |
#12 | Seattle | $70,594 | $679,000 | 72.8 |
#24 | Washington, D.C. | $70,848 | $550,000 | 58.9 |
Washington, D.C., for example, requires less than half the hours of work to pay down a mortgage than Los Angeles or New York City. Meanwhile, a popular west coast hub like Seattle only needs 72.8 hours in comparison to New York’s 113.5 hours.
Markets
Will Tesla Lose Its Spot in the Magnificent Seven?
We visualize the recent performance of the Magnificent Seven stocks, uncovering a clear divergence between the group’s top and bottom names.
Will Tesla Lose Its Spot in the Magnificent Seven?
This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.
In this graphic, we visualize the year-to-date (YTD) performance of the “Magnificent Seven”, a leading group of U.S. tech stocks that gained prominence in 2023 as the replacement of FAANG stocks.
All figures are as of March 12, 2024, and are listed in the table below.
Rank | Company | YTD Change (%) |
---|---|---|
1 | Nvidia | 90.8 |
2 | Meta | 44.3 |
3 | Amazon | 16.9 |
4 | Microsoft | 12 |
5 | 0.2 | |
6 | Apple | -6.7 |
7 | Tesla | -28.5 |
From these numbers, we can see a clear divergence in performance across the group.
Nvidia and Meta Lead
Nvidia is the main hero of this show, setting new all-time highs seemingly every week. The chipmaker is currently the world’s third most valuable company, with a valuation of around $2.2 trillion. This puts it very close to Apple, which is currently valued at $2.7 trillion.
The second best performer of the Magnificent Seven has been Meta, which recently re-entered the trillion dollar club after falling out of favor in 2022. The company saw a massive one-day gain of $197 billion on Feb 2, 2024.
Apple and Tesla in the Red
Tesla has lost over a quarter of its value YTD as EV hype continues to fizzle out. Other pure play EV stocks like Rivian and Lucid are also down significantly in 2024.
Meanwhile, Apple shares have struggled due to weakening demand for its products in China, as well as the company’s lack of progress in the artificial intelligence (AI) space.
Investors may have also been disappointed to hear that Apple’s electric car project, which started a decade ago, has been scrapped.
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