Guide to mortgage stress

What is mortgage stress?

Mortgage stress is generally when a homeowner’s mortgage repayment is more than 28% of their gross income. For example if you make the average income of these 100 cities of $50,723 per year, the amount of income paid towards monthly mortgage repayments if it was 28 percent of your income would be $1,183.50 on a $265,000 mortgage. Mortgage stress is present throughout the nation, but there are some major U.S. cities that have higher mortgage stress rates than others. Interest costs and the prices of homes are inflating, and salaries and wages are struggling to keep up. Forming good financial habits can help you keep a cool head when living in some of the more expensive cities throughout the United States.

Mortgage stress levels by major city

When looking at major city mortgage stress levels, we took the top 100 most populated cities and their median home value, median household income and annual mortgage repayments. We then used those numbers to find the proportion of mortgage repayments to income, to work out each city’s mortgage stress level (check out the results in the chart at the bottom of the page).

Looking at this number, we have determined that 20 of the largest 100 American cities are in mortgage stress.

When it comes to mortgage levels, California clocks in at having the most cities with mortgage stress. In fact, half of the top 20 cities dealing with mortgage stress are in California.

San Francisco is at the top of the list with the average mortgage repayments taking up around 61.47% of the city’s median household income. Los Angeles trails after at 50.07%, Oakland in third (49.73%), New York in fourth (47.72%), and Honolulu in fifth (44.27%).

When looking at the list of the top 100 major cities, the average mortgage repayment in proportion to income is 20.9%

For these major U.S. cities, Detroit has the lowest proportion of income to repayments, registering at a mere average of 6.12%. The second and third low-stress cities are Ohio cities Toledo and Cleveland (7.26% and 8.50% respectively), with Memphis and Fort Wayne not far behind (8.63% and 9.31% respectively).

Especially in cities with higher mortgage stress rates, homeowners should try to be as diligent as possible in saving money. If you are struggling with mortgage stress, you can try cutting out expenses where you can, and avoid making unnecessary purchases. Set a budget, and stick to it. Most importantly, opt for a house that you can afford. You want your payments to be at most 28% of your gross income. If you get a house that is within your means, you will have an easier time repaying the mortgage within a reasonable time frame. Where you live, and what city you reside in can make a big financial difference.

Mortgage stress levels in top 100 American cities

Rank	City	Median home value	Median household income	Annual mortgage repayments*	Repayments as proportion of income
1	San Francisco, CA	$1,127,400	$78,378	$48,178	61.47%
2	Los Angeles, CA	$582,100	$49,682	$24,875	50.07%
3	Oakland, CA	$616,300	$52,962	$26,337	49.73%
4	New York, NY	$588,900	$52,737	$25,166	47.72%
5	Honolulu, HI	$627,200	$60,548	$26,803	44.27%
6	San Jose, CA	$830,000	$83,787	$35,469	42.33%
7	Long Beach, CA	$521,500	$52,944	$22,286	42.09%
8	Miami, FL	$291,800	$30,858	$12,470	40.41%
9	Boston, MA	$493,700	$54,485	$21,098	38.72%
10	Anaheim, CA	$536,300	$59,707	$22,918	38.38%
11	Santa Ana, CA	$465,700	$52,519	$19,901	37.89%
12	Houston, TX	$403,500	$45,728	$17,243	37.71%
13	Fremont, CA	$905,800	$103,591	$38,709	37.37%
14	Seattle, WA	$585,400	$67,365	$25,017	37.14%
15	San Diego, CA	$539,700	$65,753	$23,064	35.08%
16	Irvine, CA	$769,000	$99,334	$32,862	33.08%
17	Washington, DC	$516,300	$69,235	$22,064	31.87%
18	Portland, OR	$378,600	$53,230	$16,179	30.39%
19	Chula Vista, CA	$469,700	$66,110	$20,072	30.36%
20	Denver, CO	$346,500	$51,800	$14,807	28.59%
21	Reno, NV	$292,900	$46,489	$12,517	26.92%
22	Garland, TX	$323,290	$51,997	$13,815	26.57%
23	Newark, NJ	$210,600	$34,012	$9,000	26.46%
24	San Bernardino, CA	$231,000	$38,774	$9,872	25.46%
25	Riverside, CA	$331,900	$56,089	$14,183	25.29%
26	Scottsdale, AZ	$414,900	$72,455	$17,730	24.47%
27	Jersey City, NJ	$333,000	$58,907	$14,230	24.16%
28	Sacramento, CA	$274,700	$50,013	$11,739	23.47%
29	Austin, TX	$303,100	$55,216	$12,953	23.46%
30	Hialeah, FL	$197,100	$37,262	$8,423	22.60%
31	San Antonio, TX	$244,712	$46,317	$10,458	22.58%
32	Stockton, CA	$232,900	$45,347	$9,953	21.95%
33	Aurora, CO	$260,500	$52,275	$11,132	21.30%
34	Fresno, CA	$194,500	$41,455	$8,312	20.05%
35	Fort Worth, TX	$245,140	$52,492	$10,476	19.96%
36	New Orleans, LA	$168,200	$36,964	$7,188	19.45%
37	Buffalo, NY	$140,315	$31,668	$5,996	18.93%
38	Baton Rouge, LA	$169,792	$38,790	$7,256	18.71%
39	Chicago, IL	$208,300	$47,831	$8,902	18.61%
40	Nashville, TN	$203,000	$46,758	$8,675	18.55%
41	Minneapolis, MN	$217,500	$50,767	$9,295	18.31%
42	Colorado Springs, CO	$231,400	$54,228	$9,889	18.24%
43	Mesa, AZ	$205,200	$48,259	$8,769	18.17%
44	Glendale, AZ	$194,800	$46,855	$8,325	17.77%
45	Atlanta, GA	$191,300	$46,439	$8,175	17.60%
46	Phoenix, AZ	$192,900	$46,881	$8,243	17.58%
47	Tucson, AZ	$151,900	$37,149	$6,491	17.47%
48	Boise City, ID	$198,400	$49,209	$8,478	17.23%
49	Henderson, NV	$256,300	$63,830	$10,953	17.16%
50	Madison, WI	$216,500	$53,933	$9,252	17.15%
51	Norfolk, VA	$176,800	$44,150	$7,555	17.11%
52	Las Vegas, NV	$198,300	$50,903	$8,474	16.65%
53	Corpus Christi, TX	$189,625	$49,675	$8,103	16.31%
54	Raleigh, NC	$206,800	$54,532	$8,837	16.21%
55	Louisville, KY	$169,150	$44,806	$7,228	16.13%
56	Anchorage, AK	$294,900	$78,121	$12,602	16.13%
57	Richmond, VA	$155,400	$41,331	$6,641	16.07%
58	Bakersfield, CA	$213,100	$56,842	$9,107	16.02%
59	Virginia Beach, VA	$250,100	$67,001	$10,688	15.95%
60	Orlando, FL	$155,000	$41,901	$6,624	15.81%
61	Tampa, FL	$160,600	$43,740	$6,863	15.69%
62	Albuquerque, NM	$170,900	$47,413	$7,303	15.40%
63	St. Paul, MN	$173,100	$48,258	$7,397	15.33%
64	Durham, NC	$174,800	$49,585	$7,470	15.06%
65	Plano, TX	$297,600	$84,597	$12,718	15.03%
66	St. Petersburg, FL	$158,900	$45,483	$6,790	14.93%
67	Indianapolis, IN	$146,458	$42,076	$6,259	14.87%
68	Gilbert, AZ	$282,700	$81,485	$12,081	14.83%
69	North Las Vegas, NV	$183,000	$53,105	$7,820	14.73%
70	Chesapeake, VA	$241,600	$70,176	$10,325	14.71%
71	Chandler, AZ	$265,700	$77,328	$11,354	14.68%
72	Philadelphia, PA	$126,300	$37,460	$5,397	14.41%
73	Dallas, TX	$145,600	$43,359	$6,222	14.35%
74	Cincinnati, OH	$111,700	$34,002	$4,773	14.04%
75	Lexington, KY	$158,000	$48,667	$6,752	13.87%
76	Charlotte, NC	$170,100	$53,274	$7,269	13.64%
77	Irving, TX	$162,200	$50,942	$6,931	13.61%
78	St. Louis, MO	$108,000	$34,800	$4,615	13.26%
79	Arlington, TX	$163,300	$53,055	$6,978	13.15%
80	Lincoln, NE	$151,900	$49,794	$6,491	13.04%
81	Laredo, TX	$119,000	$39,408	$5,085	12.90%
82	Jacksonville, FL	$139,000	$46,768	$5,940	12.70%
83	Greensboro, NC	$122,800	$41,518	$5,248	12.64%
84	Omaha, NE	$141,400	$48,751	$6,043	12.39%
85	Kansas City, KS	$110,400	$38,073	$4,718	12.39%
86	Winston-Salem, NC	$117,000	$40,480	$5,000	12.35%
87	Pittsburgh, PA	$111,900	$40,009	$4,782	11.95%
88	Oklahoma City, OK	$129,700	$46,996	$5,543	11.79%
89	Baltimore, MD	$115,000	$41,819	$4,914	11.75%
90	Milwaukee, WI	$96,100	$35,489	$4,107	11.57%
91	El Paso, TX	$111,300	$42,037	$4,756	11.31%
92	Columbus, OH	$117,900	$44,774	$5,038	11.25%
93	Lubbock, TX	$115,900	$44,139	$4,953	11.22%
94	Tulsa, OK	$107,300	$41,957	$4,585	10.93%
95	Wichita, KS	$112,600	$45,907	$4,812	10.48%
96	Fort Wayne, IN	$95,800	$43,994	$4,094	9.31%
97	Memphis, TN	$74,900	$37,099	$3,201	8.63%
98	Cleveland, OH	$52,100	$26,179	$2,226	8.50%
99	Toledo, OH	$56,900	$33,485	$2,432	7.26%
100	Detroit, MI	$37,400	$26,095	$1,598	6.12%

Source: finder.com, zillow.com, census.gov, freddiemac.com, top 100 cities based on population *based on a 30-year mortgage repaid at average 30-year fixed rate of 3.43%