Skip to main content

Zillow: Some Suburban Homebuying Costlier Than Urban Purchases

Phil Hall
Oct 09, 2018
Homeownership in the suburbs is more expensive than in urban centers in nearly half of the nation’s largest markets, according to new data from Zillow

Homeownership in the suburbs is more expensive than in urban centers in nearly half of the nation’s largest markets, according to new data from Zillow.
 
Suburban living exacts a larger financial burden for homebuyers in 17 of the nation’s 35 largest metro areas when compared with the costs of urban or rural homeownership. The San Diego market is the most expensive for suburban living, where the cost of a home in the suburbs absorbs 40.9 percent of the median household income, whereas urban home costs take up 35 percent of the typical income and mortgage payments on a rural home take up 37.3 percent of the median income.
 
However, Zillow noted that most urban homebuyers set aside a larger share of their income for monthly mortgage payments at 26.5 percent, compared with 20.2 percent suburban buyers and 13.4 percent of rural buyers. For renters, urban rental payments assign an average of 36.8 percent of the median household income to their monthly rental payments, compared to suburban renters paying 31.8 percent of their median household income and rural renters pay 23.9 percent of their typical income.
 
“Choosing where to live depends on many factors other than strictly financial terms,” said Zillow Director of Economic Research and Outreach Skylar Olsen. “The size and space of the home, and the nearby amenities have to meet your needs, or come as close as possible. How close you can come to those ideal options is always limited by what you can afford, and tradeoffs are almost always necessary. Finding a home in your budget can be a stressful process, whether you're looking to buy or rent. The difference between an urban core or more distant suburb could make all the difference.”

 
Published
Oct 09, 2018
CFPB, DOJ And OCC Hit Trustmark National Bank For 'Deliberate' Redlining

The Consumer Financial Protection Bureau and U.S. Department of Justice, in conjunction with the Office of the Comptroller of the Currency are taking action against Trustmark National Bank for alleged redlining violations.

Industry News
Oct 25, 2021
Reports: Evergrande Group Makes $83.5M Interest Payment

Faltering Chinese development firm fends off default with payment to international bondholders.

Industry News
Oct 22, 2021
FAR Establishes Borrower Engagement Division

Finance of America Reverse LLC announced its formally established Borrower Engagement Division.

Industry News
Oct 22, 2021
Automating Appraisals No Panacea For Removing Bias

With racism 'grandfathered in' to housing prices in minority neighborhoods, a solution to 'unconscious bias' is difficult to find

Industry News
Oct 21, 2021
Reports: Evergrande Group Arranges Bond Extension

Reuters, REDD say company's billionaire chairman has agreed to provide additional collateral to ensure a construction project tied to a $260M bond is completed.

Industry News
Oct 21, 2021
New American Funding Hires Regional Manager

Mark Tribuna will lead effort to expand company's partnership with affordable nonprofit builders in mid-Pacific region

Industry News
Oct 21, 2021