As home prices and energy bills remain high, a new WalletHub analysis reveals where Americans are spending the largest share of their income on housing in 2025. The report ranks all 50 states by the combined cost of mortgage payments and home energy bills as a percentage of median household income.
Hawaii, California, and Oregon top the list
Hawaii ranks first, with residents spending over 53% of their monthly income on housing—the highest in the nation. California follows at nearly 46%, while Oregon ranks third at 36%. All three states combine high mortgage payments with significant utility costs, pushing housing well beyond the affordability threshold of 30% income-to-housing ratio.
“Homeowners and buyers have faced whiplash, with interest rates rising and home prices remaining high,” said WalletHub analyst Chip Lupo. “In some states, housing costs consume almost half the average household income.”
Full state-by-state rankings
Below are the top 10 states where homeowners spend the highest percentage of their income on housing:
| Rank | State | % of Income Spent on Housing |
|---|---|---|
| 1 | Hawaii | 53.47% |
| 2 | California | 45.99% |
| 3 | Oregon | 36.27% |
| 4 | Nevada | 35.29% |
| 5 | Washington | 34.82% |
| 6 | Massachusetts | 34.61% |
| 7 | Colorado | 34.39% |
| 8 | Idaho | 32.73% |
| 9 | Montana | 31.96% |
| 10 | Utah | 31.71% |
At the opposite end, Iowa ranks as the most affordable, with residents spending just 18.84% of their income on housing.
Renters face steep costs too
Renters are also under pressure. According to the same WalletHub study, New York renters spend over 54% of their income on rent and utilities, the highest in the country. Hawaii, Massachusetts, and Florida follow closely.
Budgeting tips for high-cost areas
Experts recommend several ways to ease the financial burden of housing:
- Opt for shorter mortgage terms if you can afford higher monthly payments.
- Improve your credit score before applying for a home loan.
- Reduce utility usage by upgrading insulation and using energy-efficient appliances.
- Set housing costs as a fixed priority in your monthly budget.
Housing cost pressures continue into 2025
With interest rates still above pre-pandemic lows and home prices holding firm, affordability challenges show no signs of easing. Whether you’re a homeowner or renter, budgeting carefully and understanding local cost trends remains essential.
For a full breakdown by state, visit WalletHub’s 2025 housing cost report.