Many economists predict that affordability will be a larger issue moving into 2016, which will make buying a home much more difficult. Unaffordable housing markets across the U.S. may pose a challenge for investors searching for properties.
A new study from GoBankingRates.com found that housing costs in some states are cutting deep into the pockets of homebuyers.
How far investors' money stretches on a home can depend largely on the state they are looking to purchase, as some states are more expensive than others.
The ranking is based off of the biggest determining factors for average monthly cost of living such as housing costs, food expenditure, transportation expenses, utilities and healthcare.
So which hot markets made the pricey list and may begin to cool this year?
According to experts at GOBankingRates.com, investors in Hawaii are more likely to endure the burden of housing costs and other expenses in their pockets. California and New York took second and third place on the list.
Out of the 50 states, Minnesota investors are least likely to live paycheck to paycheck when it comes to housing costs and other factors, followed by Iowa and Missouri.
“Living paycheck to paycheck isn’t necessarily a function of income,” said Cameron Huddleston, GOBankingRates' Life + Money columnist. “Plenty of upper-income households live hand to mouth because of poor financial habits. In fact, a separate GOBankingRates’ survey found that people earning $100,000 or more were more likely to fear always living paycheck to paycheck than those earning less.”
GOBankingRates.com's 10 States Where Americans Are Most Likely to Live Paycheck to Paycheck
- New York
- New Jersey
- Rhode Island
GOBankingRates.com's 10 States Where Americans Are Least Likely to Live Paycheck to Paycheck
- North Dakota