- How Much Does the First Year of Homeownership Cost in Large U.S. Cities? – 2022 Edition
Mortgage rates have jumped over three percentage points this year, recently hitting new highs above 6.0%. And for new homebuyers, this has dramatically increased the cost of buying a home. Though homebuyers may refinance over the course of their mortgage… read more…
- This Chart Shows How Inflation Can Erode Your Retirement Savings – 2022 Study
Consumer prices rose 8.5% in July over the previous year, leaving many retirees and pre-retirees wondering how inflation impacts retirement savings. They have a right to worry. After all, living on a fixed income is tough when the price of… read more…
- Where Residents Are Most Severely Housing Cost-Burdened – 2022 Edition
With higher home prices, rising interest rates and a bear market upon us, Americans are struggling to find affordable housing. According to the Department of Housing and Urban Development (HUD) guidelines, residents in cities across the nation are considered severely cost-burdened when their household spends more than 50% of their combined income on housing costs.… read more…
- Cities With the Most Resilient Economies – 2022 Study
Despite nationwide lockdowns and sudden economic instability unleashed early in the COVID-19 pandemic, the U.S. economy showed resiliency, roaring back in the months that followed. But inflation and a bear market are now presenting new challenges that are reshaping the… read more…
- Where Elevated Gas Prices Are Highest (and Lowest) Relative to Incomes – 2022 Study
After months of climbing gas prices, the national average has hit new highs, reaching $5 per gallon of regular gasoline in June. According to recent data from AAA, the national average for regular gasoline was $4.98 per gallon on June 20, 2022. With these significant increases, Americans across the country are looking for new ways… read more…
- Cities Where Renters Can Afford to Live Alone – 2022 Edition
Rent prices are rising rapidly in many of America’s largest cities. Nationally, average rent increased by 11.3% between the start of 2021 and 2022. To more comfortably afford housing costs, some renters opt to share a space. The Pew Research Center reports that nearly one in three adults have a roommate. However, many people prefer… read more…
- Best Cities for First-Time Homebuyers – 2022 Edition
As home prices continue to skyrocket, it has become increasingly difficult for first-time buyers to afford a home. In April 2021, U.S. Representative Earl Blumenauer (D-Ore.) sponsored federal legislation that would create a refundable tax credit of up to $15,000 for first-time homebuyers, similar to the one included in the 2008 Housing and Economic Recovery Act.… read more…
- Hours of Work Needed to Pay Rent in the 25 Largest Cities – 2022 Edition
When it comes to housing costs, a general financial rule says not to spend more than 30% of your pre-tax income on this inevitable expense. But though the Bureau of Labor Statistics says that Americans paid roughly 25% of their income on housing expenses in 2020, residents in larger cities generally have to put in… read more…
- Best Cities for an Affordable Wedding – 2022 Edition
Due to the COVID-19 pandemic, many betrothed couples delayed their nuptials out of caution or in adherence to safety guidelines. Because of this, the wedding industry saw a dramatic fall in revenue (-35.7%) from 2019 to 2020, and average wedding costs fell 21.6% simultaneously. However, spending has since normalized. In fact, average wedding costs are on the rise… read more…
- Price-to-Rent Ratio in the 50 Largest U.S. Cities – 2022 Edition
Transitioning from renting to buying a home is a major financial milestone. But rising prices have made home buying more challenging for millions of Americans. The Federal Reserve Bank of St. Louis says that the median home sales price increased 30% between the first quarter of 2020 and the first quarter of 2022, reaching $428,700. And rents are shooting upward… read more…
- Most Affordable Beach Towns – 2022 Edition
Buying a home in 2022 has become very expensive. The S&P CoreLogic Case-Shiller US National Home Price Index, which tracks the purchase prices of single family homes, says that prices rose 19.2% in the one-year period ending in January 2022. When you add in proximity to the water, prices can be even more discouraging. However, there… read more…
- Where High Gas Prices Will Most Affect Residents – 2022 Study
As inflation continues to send the cost of goods and services higher and higher, there’s one place where price spikes have been especially acute: the gas pump. The consumer price index says that the price of gasoline surged 6.6% in February 2022, pushing costs 38.0% higher than one year earlier. And if rising inflation wasn’t enough of a… read more…
- Places Where Inflation Has Spiked the Most – 2022 Edition
With rapidly climbing food, rent and gas prices, inflation is the highest it has been in four decades. Data from the Bureau of Labor Statistics (BLS) shows that the Consumer Price Index (CPI), which measures the change in prices paid by urban consumers for goods and services, increased 7.9% during the 12-month period that ended in February… read more…
- Best States for Childcare Access and Affordability – 2022 Study
Since 1990, average childcare costs in the U.S. have more than doubled while the median household income has increased by just 35%. With childcare costs outpacing incomes, childcare alone can account for more than 10% of one’s pre-tax income. However, in some states childcare is more affordable than others. In this study, SmartAsset looked at… read more…
- States Where Residents Are Financially Hurting the Most – 2022 Edition
The Federal Reserve Bank of New York says that household debt went up roughly $1 trillion in 2021, which is the highest annual increase since 2007. Other studies estimate that the average household now owes more than $155,000. As Americans struggle to keep up with bill payments and afford basic necessities like food and housing,… read more…
- Cheapest States for Car Ownership – 2022 Study
Many Americans choose to buy used cars as a cost saving mechanism rather than investing in a new vehicle. In fact, in 2020, over 40 million used cars were sold in the U.S. compared to 14.6 million new cars. But even with a used vehicle, the first year of car ownership can be a pricey endeavor… read more…
- What a Roommate Saves You in 50 U.S. Cities – 2022 Edition
With average housing costs adding up to almost 35% of all household expenditures in 2020, many renters nationwide are looking for roommates so they can afford short-term financial obligations, save for long-term financial goals or both. Keeping this in mind, SmartAsset analyzed data to identify and rank cities according to where living with a roommate saves… read more…
- How Home Affordability Is Changing Across the U.S. – 2022 Study
Finding an affordable home has become an increasingly daunting endeavor. As the COVID-19 pandemic took hold in the U.S., home prices soared while incomes remained stagnant. In fact, Zillow and Census Bureau data shows that between 2019 and 2020, the average home value rose at a rate more than double the median household income (5.09%… read more…
- States With the Largest Tax Bills – 2022 Edition
Is tax season a time when you look forward to an eventual refund or dread a looming tax bill that could cost you thousands of dollars? Taxpayers who owed the IRS money when they filed their 2019 federal tax return faced an average tax bill of $5,893. That’s $272 more than one year earlier when those who… read more…
- Marriage Penalty vs. Marriage Bonus: How Taxes Work
Even if your wedding was all about eternal love, companionship and mason jars wrapped in twine, don’t fool yourself: at the end of the day, your marriage is essentially a tax arrangement in the eyes of the state. When two people become one unit, the way they pay into our society changes, as their income,… read more…
- Where Getting Married Is More Expensive Than Buying a Home – 2022 Study
Not all couples can afford to buy a home and have the wedding of their dreams. Some must choose between the two or postpone one in favor of the other. The Netflix reality series “Marriage or Mortgage” explores this dynamic, as a couple decides between buying a home or having their dream wedding in each episode.… read more…
- Places Where People Spend the Most on Utilities – 2021 Study
Americans are spending slightly less of their pre-tax income on utilities when compared with a decade ago. According to Bureau of Labor Statistics (BLS) data, the average American household spent 4.93% of income on utilities, which includes electricity, gas, telephone services, water and other public services such as waste pickup. This is down from 5.86%… read more…
- How Much Does the First Year of Homeownership Cost in Large U.S. Cities? – 2021 Study
The first year of homeownership can often be the most expensive, especially when paying a sizable down payment and taking closing costs into account. More times than not, the most affordable places to buy homes are smaller and more rural. But how much does the first year of homeownership cost in America’s largest cities? To answer… read more…
- Places Where People Spend the Most on Food – 2021 Edition
While inflation continues to linger, the price of food is among the few commodities that hasn’t skyrocketed in the last year. According to the Consumer Price Index for All Urban Consumers, which tracks the price of goods and services, food prices were just 3.7% higher in August than they were 12 months earlier. That may… read more…
- How Long Does It Take to Become a Homeowner? – 2021 Edition
Though the COVID-19 pandemic has financially impacted Americans in many ways, the homeownership rate has risen and stayed elevated. Census Bureau data shows that the homeownership rate actually hit 67.9% in the second quarter of 2020, up from 64.1% from a year before. More recently, the national homeownership rate was 65.4% in the second quarter… read more…