Sacramento area residents get relatively low marks for living within their means in a new national study. The ranking of the 50 largest U.S. cities puts Sacramento at number 40. Meanwhile, San Francisco comes in at number 7. The ranking was released today by LendingTree, the mortgage shopping company.
"In Sacramento, the average household income is around $87,000 a year. Down in the Bay Area it's $126,000,” says LendingTree's Brian Karimzad. “So even though house prices are much higher in the Bay Area, on a relative basis, people are able to support themselves with the higher incomes in the Bay Area."
He says the average Sacramento resident has installment loans - for things like cars or boats - of $21,000. In the Bay Area the average is $19,000.
"Not a big difference in the balance,” says Karimzad. “But the incomes in the Bay Area are almost $60,000 a year higher. So Sacramentans are taking on a bigger debt burden overall."
The study looked at how well people stay within spending limits based on: housing debt; car or student loans; and credit inquiries...that's when a consumer applies for a credit card or other type of credit. Sacramento residents have mortgage burdens at 103 percent of income. The national average is 79 percent.
Greenville, South Carolina and Greensboro, North Carolina top the list of regions where residents live within their means. San Antonio, Texas and Las Vegas, Nevada are at the bottom of the list.