Written by The Business Journal Staff
A new study finds that Fresno homeowners can end the month with $693 in their pockets after paying off their living expenses.
Real estate search and property information site PropertyShark teamed up with apartment rental portal RENTCafé on the joint study, looking at the top 50 largest US cities to see how much discretionary income homeowners and renters have after paying for living expenses.
The study found that Fresno homeowners can picket nearly $700 each month. But the same can’t be said about renters, who could be $669 in the hole each month without careful budgeting, according to PropertyShark and RENTCafé.
The figures were computed by subtracting living and housing costs from the median household income, as determined by the Census breaking out homeowners and renters.
The study found that homeowners in Manhattan could have up to $4,692 in discretionary income, followed by San Jose at $3,501 and Washington, D.C., at $3,285 to round out the top three.
Miami, Florida, homeowners ended up $1,219 in the hole, followed by a deficit or $905 in Detroit, Michigan, and $842 in Cleveland, Ohio to round out the bottom three.
Bakersfield came in at No. 14, with homeowners saving $1,572 each month, and renters also saving $241.
One key takeaway from the study is that renters face important challenges.
“One of the biggest culprits behind the heavy housing cost burden is the fact that incomes have not increased at the same pace as housing prices, creating an affordability problem nationwide. Apartment rents have accelerated during and after the recession, as demand for rentals has surged. Renters who live in the most expensive markets in the U.S., New York, Boston, and the Bay Area, are particularly affected by these disproportionate changes in income versus rents,” Nadia Balint, Senior Marketing Writer, RENTCafé.