Here's the percentage of Honolulu renters who can afford a median-priced home
HONOLULU (HawaiiNewsNow) - Just 9 percent of Honolulu renter households could actually afford to buy a median-priced single-family home on Oahu, the lowest share among 100 of the largest metro areas nationwide, according to a new report.
The State of the Nation's Housing report underscores the difficulty renters looking to buy face in Oahu's hot housing market.
The analysis, based on 2015 figures (when the median price for a home was $707,000), defined affordability as a household paying no more than 36 percent of their income on housing and assuming a 5 percent down payment. The median price of a single-family home on Oahu is now about $720,000.
It put the median household income for Oahu renters at $55,730. The monthly payment for a single-family home was $4,330.
In no other metropolitan area was the percentage of renters that could afford a home lower.
In San Jose, the second least-affordable metro, 12 percent of renter households could afford to buy. In Los Angeles, the share was slightly higher.
Nationally, 45 percent of renters in metro areas could afford the monthly payments on a median-priced home in their market areas.
The report, from the Joint Center for Housing Studies of Harvard University, also looked at the percentage of Americans burdened by high housing costs.
It found that 56 percent of Honolulu renters are cost-burdened, or paying more than 30 percent of their income on housing.
That's the fifth highest percentage in the nation.
Meanwhile, 31 percent of Honolulu renters are "severely burdened," or paying more than 50 percent of their income on housing.
Miami had the highest percentage of cost-burdened renters, with nearly 62 percent, followed by Los Angeles and Daytona Beach, Fla.
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