Friday, May 1, 2020 / by Vanessa Saunders
From Vanessa Saunders, MBA, MIMC , Broker Owner, Global Property Systems Real Estate.
Electronic deposits of the stimulus package under the Coronavirus Aid, Relief and Economic Security (CARES) Act are showing up in people’s bank accounts daily. The U.S. government has started paying every tax paying citizen $1,200 as part of their plan to jump-start the American economy. No doubt a lot of people will put this money toward rent or mortgage payments. But how far will $1,200 go?
Surprisingly, pretty far. Over 75 percent of U.S. renters and almost 50 percent of homeowners could pay one month of housing expenses with $1,200. A recent study reported by Inman News selected the 50 largest metropolitan areas in the United States and ranked them by the percentage of homeowners who could pay all or most of their housing one-month mortgage payment plus utility costs with $1,200 or $2,400 (assuming some would be couples). They made rankings for renters in the same 50 cities.
According to Inman, Indianapolis, a metro area where the median monthly mortgage payment is $1,254, contained the greatest percentage of homeowners who could cover monthly mortgage and utility costs with $1,200 at 66 percent of homeowners. Louisville, Kentucky, and Birmingham, Alabama, also had a majority of homeowners who could cover most of their mortgage and utility costs with the stimulus check amount at 65 percent of homeowners. Memphis, Tennessee (64 percent) and Buffalo, New York (63 percent) rounded out the list of the top five metros where the stimulus check would go the furthest for homeowners.
The proud renters in Buffalo, New York had the lowest median rental at $809 per month. 98% of homeowners in Buffalo could cover most or all of their monthly rent with the stimulus package check. New York City residents fared far worse, coming in at #48th (50 being the most expensive.) Only 11% could cover the cost of the median mortgage and utilities with the stimulus package. Renters fared better, as 55% could cover rent and utilities with $1,200.
To check on the status of your stimulus package, click HERE.
For more information about Hudson Valley real estate, CLICK HERE.
Ask the Readers: What are your plans for your stimulus cash? Put it toward housing costs? Or make a mad dash to Vegas? Tell us HERE