T
he housing market is becoming increasingly unaffordable for many Americans. According to a recent survey, several major cities have seen mortgage payments rise to 60% or more of the per capita income. Los Angeles is one of five West Coast metros with extremely high housing costs.

    Nationwide, the average homeowner now pays about 36% of their per capita income towards their mortgage and interest, up from 25% in 2020. Experts warn that this trend cannot continue indefinitely. Even adjusting for inflation, more of Americans' paychecks are going towards keeping a roof over their heads than ever before.

    The US News Housing Market Index identified several cities with extremely high housing costs. The top five most overvalued markets are:

    1. Kahului-Wailuku-Lahaina, Hawaii, where mortgage payments account for 115.4% of the per capita income.

    2. San Francisco-Oakland-Hayward, California, where homeowners pay 68.3% of their income towards housing costs.

    3. Riverside-San Bernardino-Ontario, California, where median-earning homeowners shoulder a burden of 67.8%.

    4. San Diego-Carlsbad, California, where the housing shortage and rising prices have made it difficult for average-income earners to afford homes.

    5. Los Angeles-Long Beach-Anaheim, California, where the recent fires will only exacerbate the high costs for buyers and renters.

    Experts attribute these high costs to a combination of factors, including remote locations, limited supply of skilled workers, and intense competition from investors and retirees.