Posted on 01/24/2023 10:59:25 AM PST by millenial4freedom
And then add in utilities
and its more like 80-90%.
The government thinks rent (and) utilities together should be 30% of your income but it hasn’t been like that for me...ever.
Rents are high because of AirB&B. There are lots of people who own extra real estate thinking they can make money renting them out one night at a time. Its a tough way to earn a living. If those apartments go back on the market, as they have in some towns, the rents will collapse. Because of business travel combined with tourism, New York is more resilient than other cities.
All part of the plan.
Of course, the invaders can live 12,or more, to a house..you can tell because they have 6 or more cars in the driveway.
...and instead of looking for ways to increase wages, everyone’s going to propose rent control instead.
30% is just the dividing line. It’s industry standard that you don’t get approved if the rent is more than 30% of your household income, because you won’t be able to pay it.
And even that has been recently changed to be more accommodating. It used to be 20-25%.
There are multiple causes, but the two biggest factors are that wages have remained stagnant for decades, while we also keep artificially propping up real estate prices, which has the side effect of keeping rents high as well.
They want to drive mom and pop landlords out.
Dumb question, but 30% of gross or take-home?
Five years ago I moved out of CA after ~20 years of living there.
same here but when I sold the house and retired I was able to pay cash for a new place and still leave a good amount in savings. Nice not to have rent or mtg payments.
I’m so glad everything my life is paid off except basic bills and taxes. I can’t imagine stressing out about paying the rent as I did in my 20s.
Its not a dumb question. 30% of take home is manageable. 30% of gross is stretching a lot.
33 to 35% has been considered typical.
30% seems kind of low.
Current rental rates in my area have skyrocketed by $200 or more per month over what they were 2 years ago.
I have a suspicion Blackrock etc. bought all the available housing in my little city. Old dumpy houses would go on the market and within hours would sell for 100k over asking site unseen. They sat empty for months then some renter moved in.
They lived with me in Chelmsford until they were in their early 20s but I moved down to New York for my job. They were not able to touch anything in Chelmsford (NW of Boston) but just a half hour west of there and prices get much more reasonable.
And the other 70% on food and gas.
When I was in law school the rule of thumb was that people spent 28% of their income on housing. So I donāt get what the big hoo ha is about 30%.
What is the solution?
More housing?
No air bnbs,
No buying of entire neighborhoods by corporations?
Other?
Average rent for a 3 room apt.in an old building in this low income (American-wise) NE city is about 2,200+ with no parking. Overall average rent for an apartment in is almost $2,700. Thank God He has given us a break though. Prop tax when u about 2,000 a year also. Now $12.38 per thousand. Saw an ad for a 1900 sq ft condo here for 750,000, with a 400 per month HOA fee.
I remember the same, but it was always for a mortgage payment, and assumed the house would be paid off in 25-30 years, so the expenses was mostly over and done with. But rent? Now that is a whole 'nother ballgame.
“ONLY 30%?
Seriously?!?”
I was thinking the exact same thing. This is way flawed. My kids are paying at least double that on rent and mortgages.
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