More Americans become house poor

WASHINGTON — Americans are becoming increasingly house poor.

Homeowners in every state but one spent more of their incomes on housing costs last year than at the start of the decade, according to data to be released today by the Census Bureau. Those in Alaska spent the same.

Nationwide, homeowners spent nearly 21 percent of their incomes on housing costs last year, up from just under 19 percent in 1999.

Housing analysts blamed surging home prices, higher interest rates and lower incomes for hurting affordability.

“It is now much more difficult for first-time homebuyers to get into the market, and for existing homeowners to trade up,” said Mark Zandi, chief economist at Moody’s Economy.com. “This decline in affordability is the catalyst for the current sharp decline in housing activity.”

The housing market has gone soft in many areas, but home prices are still much higher than they were at the start of the decade. Nationwide, median home values jumped 32 percent from 2000 to 2005, to $167,500.

Household incomes have not kept up, dropping 2.8 percent during the same period.

“Until incomes catch up, the housing market is going to remain flat,” Zandi said.

America’s home ownership rate is at a near-record 68.7 percent. But some housing advocates warn that declining affordability will make it difficult for low-income owners to keep their homes.

For example, the government says housing costs are excessive if they top 30 percent of household income. Nationally, 34.5 percent of homeowners with a mortgage had housing costs that topped that benchmark in 2005, an increase from 26.7 percent in 1999.