Home ownership still remains a challenging goal for many renters in D-FW, but a new study shows that a particular ZIP code in southeast Dallas is one of the most affordable in the country for a neighborhood resident to become a homeowner.
MovingPlace looked at the 150 most populous ZIP codes in the United States, calculating a mortgage-to-income ratio by comparing the average monthly mortgage payment to the average renter’s income. ZIP codes with lower ratios were considered more affordable for renters to buy.
Southeastern Dallas ZIP code 75217 came in at No. 2 in the nation with a mortgage-to-income ratio of 25.3%. Comprising the broader Pleasant Grove area, 75217 is one of only a handful of ZIP codes with a ratio under the 28% threshold of that golden 28/36 rule.
“The 28/36 rule indicates that you should spend no more than 28% of your gross monthly income on housing costs and no more than 36% on total debt payments, including housing expenses. With only 3 of the 150 most populous ZIP codes meeting this standard, the U.S. housing market shows little affordability,” the study reads.
Amid rising home valuations and rents, housing affordability has been a pressing issue in D-FW, the Lone Star State, and really the country as a whole. Earlier this year, Mayor Eric Johnson went to Washington, D.C., to testify before the Senate Committee on Banking, Housing, and Urban Affairs. He argued for more emphasis on facilitating the construction of housing stock rather than subsidizing the demand side of the equation…