A new study has found that the two U.S. states that are some of the biggest tourist destinations in the world are also the ones with the highest expense for renters.
An analysis by Forbes Home revealed that Hawaii and California sit at the top of the list of states where renters spend the biggest chunk of their paychecks on housing.
The average monthly income for Hawaiians is $5,079, and residents spend an average of $2,136 on rent. This means that a whopping 42% of an average Hawaiian’s income goes toward rent. Most of the population is located in the capital of Honolulu.
Second on the list sits California, where the average monthly income sits at $6,385, and the average rent is $1,818. The average Californian therefore spends approximately 28% of their monthly income on rent. While California has some extremely pricey homes for rent in highly populated areas such as the Los Angeles Basin and the San Francisco Bay Area, it also has low-income housing spread across the state, bringing down the average.
The two states are the first and 10th most visited states in the nation, respectively.
“Many of the states that made this list also made our list for top states people were moving to in 2021 and 2022, so it’s no surprise that we are seeing an average rent increase in these areas that have gotten an influx of new residents,” a spokesperson for Forbes Advisor said.
Notably, California is mentioned in the article as the number one state that people are fleeing.
The remaining states in the top five are all in the Northeast, with the third through fifth spots going to New Jersey, Massachusetts and Delaware, respectively.
In New Jersey, residents spend about 28% of their income on rent. The average monthly income is $6,385, with $1,765 going toward rent every month.
In Massachusetts, which has the highest average income of the Top 10 with $6,971 per month, the average rent is $1,823, meaning residents spend 26% of their income on rent.
Lastly, Delaware residents spend 26% of their $4,994 monthly income on their housing costs, setting the rental prices on average at $1,288.
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