Housing Cost Burden - Homeowners

Definition

Percentage of mortgaged owners spending 30% or more of household income on selected monthly owner costs, 2011.

Selected monthly owner costs are the sum of debt payments (e.g., mortgage or home equity loans), taxes, insurance, utility and fuel costs, and if applicable, other fees (e.g., condominium fees or manufactured home community lot rents).

Description

This measure is an indicator of the portion of a household’s income that is consumed by costs of owning a home. Expenses such as mortgage payments, property taxes, utility costs and other fees take away money that could be saved or invested in other assets. When these expenses exceed 30% of household income, the household is classified as “cost-burdened” and is at risk of foreclosure or homelessness if it suffers a decline in income.

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Housing Cost Burden - Homeowners

Source

2011 American Community Survey. Washington, DC: U.S. Department of Commerce, Census Bureau, 2012.