By: Kevin Pryor June. 28, 2018
A recent study discovered that mortgage-holding residents in Indiana pay the lowest percentage of income towards homeownership costs compared to the rest of the nation. In other words, Indiana has the lowest cost of living in the United States in terms of percentage of income spent on housing costs.
This study conducted by Gavop used data collected by the United States Census Bureau. The results showed that homeowners with a mortgage in Indiana paid a median value of 24.5 percent of their income to housing costs in 2016. A detailed analysis showed that Indiana has statewide housing costs of $12,840, a median income of $52,314, and a median home value of $134,800 - all of which are less than the corresponding national values.
Further, Indiana is the only state in which the median proportion of income spent on housing costs is below 25.0 percent for mortgage holders; the next lowest proportion is 25.3 percent for Iowa, followed by 26.1 percent for North Dakota. In comparison, the nationwide value of income spent on housing costs is 30.9 percent.
Housing costs refers to the proportion of income allocated toward homeowner expenses such as the sum of mortgage payments, real estate, taxes, insurance, and utilities.
The table below shows a comparison of housing costs for Indiana and the whole of the US.
|Location||% of Income Spent on Housing by Homeowners with a Mortgage||Annual Housing Costs for Homeowners with a Mortgage||Median Income||Median Home Value|
Taking a more localized view of the data, the study found that Hendricks County residents with a mortgage on their home pay the lowest proportion of income toward housing costs at 20.1 percent. The location with the next lowest value is Johnson County at 20.6 percent, followed by Hamilton County at 20.7 percent, LaPorte County at 21.6 percent, and Morgan County at 22.0 percent.
Ranking of Counties by Lowest Housing Costs as a Percentage of Income
|Rank (Lowest to Highest)||County||% of Income Spent on Housing by Homeowners with a Mortgage||Annual Housing Costs for Homeowners with a Mortgage||Median Income||Median Home Value||Number of Housing Units|
On the other hand, residents of Marion County pay the largest proportion of income towards housing costs in Indiana at 29.3 percent, followed by Monroe County at 29.2 percent, Grant County at 28.0 percent, and Delaware and Lake counties tied at 26.0 percent.
Ranking of Counties by Highest Housing Costs as a Percentage of Income
|Rank (Highest to Lowest)||County||% of Income Spent on Housing Costs by Homeowners with a Mortgage||Annual Housing Costs for Homeowners with a Mortgage||Median Income||Median Home Value||Number of Housing Units|
The table below represents the median housing costs for all counties in Indiana.
Housing Costs as a Percentage of Income in Indiana [Highest to Lowest]
|Location||Median Housing Costs as a % of Income for Mortgage Holders||Median Housing Costs with a Mortgage (Annual)||Median Income||Median Home Value||Total Homes|
|St. Joseph County||23.9||$11,556||$48,358||$126,900||115986|
Kevin Pryor currently works as a data analyst and public relations associate where he takes pride in analyzing data and sharing the amazing insights it presents to various target audiences. Kevin graduated from the University of Connecticut with a bachelor’s degree in communication and has a passion for the results that can come from effective communications. While at school, he interned with Total Mortgage, Stafford Motor Speedway and UConn Community Outreach. In his free time, Kevin enjoys outdoor activities, cinema, traveling, and spending time with friends and family.