Ohio among top 5 states spending lowest percentage of income on housing
In Ohio, homeowners across the state face shortages in affordable housing options, competitive markets and rising real estate rates.
In 2022, the Ohio Greater Policy said the state’s median household income is lower than the national average and hasn’t kept up with increases in pay nationwide.
However, income averages have changed and Ohio is actually one of the top five states where homeowners and renters spend the least of their monthly income on housing costs.
WalletHub researchers wanted to find out which states’ residents are spending the most and least on housing, including mortgages and monthly energy bills.
Chip Lupo, an analyst for WalletHub, said housing costs in some states account for around 50% of someone’s income.
“Homeowners and home buyers have faced whiplash over the past few years, with housing prices soaring and interest rates fluctuating from historic lows back up to the highest rates in more than a decade,” Lupo said. “In order to manage expensive mortgage payments and other key housing costs, it’s important for homeowners to budget effectively.”
According to the Greater Ohio Policy Center, in 2010, Ohio’s median income for homeowners was around $47,358.
By 2020, it rose to $58,116 and increased to $69,680 in 2023, according to the Greater Ohio Policy Center’s American Community Survey from 2023.
According to research from WalletHub, the total cost for housing that’s coming out of the median monthly household income for Ohio homeowners is around 20%.
Ohio is ranked fifth on WalletHub’s list for states where people spend the least on housing, behind Nebraska, Kansas, West Virginia and Iowa.
In Hawaii and California, it’s between 49% and 50% of the residents’ median monthly income is going toward mortgages and housing costs.
For renters in Ohio, the total cost is 27% of the median monthly income.
Ohio ranked number 27 among states where renters spend the least on housing.
People in Hawaii and California spend the most on housing as a percentage of their income.
“The average Hawaiian shells out nearly 53% of their income between monthly mortgage payments and home energy costs,” according to WalletHub.
For comparison, Ohio residents only spend an average of 20% of their income on housing costs.
