Experian consumer reporting agency identified the top twenty-five zip codes in the country with the highest mortgage balances. California was home to seventeen of those zip codes. The remaining zip codes with the highest mortgage balances were split between Connecticut and New York. New York City was home to four of those zip codes and those four zip codes claimed the highest mortgage balances in the nation.

According to Experian, outstanding mortgage balances totaled $9.5T. The highest average mortgage balance, $1,528,236, was in the 90210 zip code of Beverly Hills. The average annual income accompanying that average balance was $157,359.

The lowest average mortgage balance, $805,813, was in Saratoga CA, zip code 95070. Accompanying that average balance was an average annual income of $172,029.

Just published data by Douglass Elliman and Miller Samuel Real Estate Appraisers indicates that sale prices in New York City dropped a whopping -14% in Q3, the steepest drop since 2010 when NYC was in the throes of the Great Recession. Miller Samuel believes much of this drop is due to the city’s recent passage of its mansion tax (covered her in previous posts.) Jonathan Miller, president of Miller Samuel, said, “There is a lot of uncertainty in the air. It’s going to be a slow grind over the next year or two.”

In terms of the most expensive zip codes in which to rent, Yardi Matrix found that among the 50 major US rental markets, 28 of those 50 were in New York City; 12 were in the San Francisco Bay Area; 6 were located in Southern California; and 4 of the most expensive zip codes in which to rent were in Boston.

By region, the most expensive zip codes in which to rent included…

  1. 10282 Manhattan $6,211/month               -1% change
  2. 94114 San Francisco $3706/month            +3% change
  3. 20037 Washington DC $2,864/month         -4% change
  4. 33131 Miami $$2,722/month                     -7% change
  5. 37215 Nashville $2,201/month                  -9% change
  6. 60606 Chicago $2,770/month                    -6% change
  7. 78701 Austin $2,885/month                      -3% change
  8. 80206 Denver $2,454/month                     -8% change
  9. 90024 Los Angeles $4,944/month              +2% change
  10. 98004 Bellevue WA $2,847/month             -5% change

For the third year in a row, Manhattan’s 10282 zip code has been the most expensive in which to rent. Its current monthly rent of $6,211 has increased an eye-popping +12.4% y/y.

The zip code with the smallest average rent is 67213 in Wichita KS at $423/month.

Rent Café looked at specific zip codes in specific cities to determine the most expensive zip codes in which to rent.

  1. 10282 Manhattan $6,211/month           +12.4% change
  2. 10013 Manhattan $5,327/month           -0.8% change
  3. 10023 Manhattan $4,053/month           +5.4% change
  4. 90024 Los Angeles $4,944/month         +4.1% change
  5. 90048 Los Angeles $4,896/month         +3.7% change
  6. 94105 San Francisco $4,858/month       +4.1% change
  7. 10065 Manhattan $4,777/month            -6.1% change
  8. 10002 Manhattan $4,666/month           +2.8% change
  9. 10025 Manhattan $4,646/month           +1.6% change
  10. 10028 Manhattan $4,642/month           +3.7% change

Also read: https://timandjulieharris.com/2019/09/11/some-worry-that-america-could-talk-itself-into-recession.html, https://timandjulieharris.com/2019/09/12/recession-worries-stifle-home-price-expectations-to-record-lows.html, https://timandjulieharris.com/2019/10/01/how-telecommuting-is-changing-real-estate.html