‘What’s Up? Nothin’ But the Rent.’
No news to Seattle renters, but Seattle is officially one of the most expensive cities to rent a home… tenth in the country behind San Franciso. Seattlites need to make the equivalent of $44/hour to afford a median rent. San Francisicans need to earn a minimum of $79/hour.
Renting is twice as expensive as buying
While renters continue to pay an increasing share of their income to their landlords as rents soar and incomes remain flat, keep in mind how much you need to make hourly is less if you choose to buy a house.
On average, homebuyers making the nation’s median income and purchasing the typical U.S. home spend 15.3% of their income on their monthly house payment, down from the historical norm of 22.1% during the pre-bubble period from 1985 to 1999.
In contrast, renters spent 29.9% of their monthly income on rent in the third quarter of 2014, up from 24.9% historically.
In Seattle depending on whether one is a first-time homebuyer or not, 21%-27% of monthly income goes to a mortgage payment. If one rents, it’s a whopping 30.8%.