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Zillow: L.A.-O.C. least affordable for renters

Zillow: L.A.-O.C. least affordable for renters

Renting in Los Angeles and Orange counties is less affordable than any of the nation’s top 35 metro areas, according to a Zillow analysis of rent affordability in the second quarter of 2015.

In the Los Angeles metro area, which includes O.C., renters paid 48.9 percent of their monthly income on rent in the spring months of April through June. By comparison, they spent 35.6 percent on rent from 1985 through 2000, preceding the housing bubble and its bursting.

The L.A.-O.C. region has been at the top among the largest 35 metro areas for more than five years, according to the online real estate site.

The local rent’s share of household income topped that of the San Francisco Bay area, where 46.7 percent of earnings goes to pay the landlord. Miami-Fort Lauderdale was the third least-affordable metro area for renters, with 44.5 percent of earnings going to rent.

San Diego County and the San Jose area both beat the New York, with 43.7 percent and 41.5 percent of income going to rent respectively.

Meanwhile, the typical renter in the New York metro area spent 41.3 percent of earnings on rent.

Nationally, rental affordability worsened over the last year, Zillow reported.

Renters in the U.S. put 30.2 percent of their monthly income toward rent – the highest percentage ever. From 1985 through 2000, U.S. renters spent about 24.4 percent of their incomes on rent.

“From an affordability perspective, rents are crazy right now,” said Zillow Chief Economist Svenja Gudell. “If you can possibly come up with a down payment, then it’s a good time to buy a home and start putting your money toward a mortgage.”

For Los Angeles metro-area homebuyers, the monthly mortgage payment eats up about 39.9 percent of the typical mortgage payment, third highest among top U.S. metro areas. That compares to a historical average of 34.6 percent.

Nationwide, 15.1 percent of a typical buyer’s income goes to pay the mortgage, Zillow figures show. That compares to a historical average of 21.3 percent.

Contact the writer: 714-796-7734 or jcollins@ocregister.com

The Orange County Register – News Headlines : Real Estate News