Miami area ranks No. 1 in nation for cities with most "house poor" homeowners

CBS News Miami

MIAMI - Four South Florida cities are in the top 10 for "house poor" homeowners.

Using data from the U.S. Census Bureau's American Community Survey, the Chamber of Commerce found that homeowners in Hialeath are number one in the country for being "house poor."

So just what is that?

Whether it's due to high interest rates or simply choosing to live beyond their means, homeowners who spend more than 30 percent of their income on housing costs are considered "house poor."

The "30 percent rule" is a popular standard for budgeting, which advises homeowners to avoid spending more than 30 percent of their income on housing expenses.

These cost-burdened homeowners have found themselves facing budget-busting housing expenses such as monthly mortgage payments, property taxes, homeowners insurance, and utilities.

So just how bad is it in Hialeah?

The study found nearly 60 percent of homeowners there are spending more than 30 percent of their income on housing.

Los Angeles came in second (48.7 percent) and New York came in third (45.3 percent).

At number four was Miami (44.6 percent) and Hollywood, Florida came in at number five (44.3 percent).

Fort Lauderdale also made the top ten - coming in at number 8 (43.7).

Nationwide, 27.4 percent of homeowners are considered "house poor." Overall, 21 percent of cost-burdened homeowners have a household income of less than $75,000.

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