Homebuyer Checklist: Budgeting for homeownership in 2022 in Riverside
PHOTOS FROM 123RF
By Briana Frazier
T
he state of California is known to be the golden state of opportunities yet many of its residents are far from thriving. In fact, statistics show that many are living in poverty from paycheck to paycheck. That would also mean that quite a significant number of the residents here are not homeowners. According to a 2017 report by Making Ends Meet, the basic cost of living in many parts of the state is way more than many single individuals or families can expect to earn even if all adults were working full time. Such conditions would mean budgeting for homeownership is out of reach for many people.
BUT IS IT DOABLE? YES! Setting a realistic homebuying budget in the state of California, more so in the County of Riverside is one of the most important steps toward being financially conscious to own a home. The Census Bureau notes that the median household income between the years 2016 and 2020 was $70,732 while the per capita income during the same period was $29,913. At the same time, the Bureau reports that of the basic monthly budget, housing costs and utilities take up about $2,000- $2,200 a month! This means, that 35-39% of the household’s income is going to housing which is way more than the recommended 30%. Therefore, even before you start to think of buying a home, it is important to understand the economics of it, where you are financially, and whether it suits you to buy now. But that aside, if your budget allows it, now would be the perfect time to buy especially after the fact that inventory is on the rise.
JUNE 2022 | 91
