ARE YOU SPENDING TOO MUCH ON RENT

Dated: 10/31/2018

Views: 13

Are You Spending TOO Much On Rent?

Are You Spending TOO Much on Rent?


Chances are if you are renting you are spending too much of your income on your monthly housing expense. There is a long-standing ‘rule’ that a household should not pay more than 28% of their income on their rent or mortgage payment. This percentage allows the household to save money for the future while comfortably covering other expenses.

According to new data released from ApartmentList.com, 49.5 million renters in the United States were cost-burdened in 2017, meaning they spent more than 30% of their monthly incomes on rent. This accounts for nearly half of all renter households in the country and is up 3.1 million from 2007.

When a household is cost-burdened by their monthly housing expense, they are not as easily able to save money for the future. This is a big factor for many renters who dream of owning their own homes someday.

But there is hope for those who are able to save at least a 3% down payment! The percentage of income needed in the US to buy a home is significantly less than renting at 17.1%!

The chart below compares the historic percentage of income needed to rent and buy from 1985-2000 to the first quarter of 2018. As you can see, the cost of renting has climbed above historic numbers while the cost of buying dropped over the same period of time.

Are You Spending TOO Much on Rent? | Keeping Current Matters

Bottom Line

If you are one of the many renters who is spending too much of their monthly income on rent, consider saving money by getting a roommate, moving into a less expensive apartment, or even moving in with family. These are all ways to save for a down payment so that you can put your housing costs to work for you!

Blog author image

Bevia Patrick

Since its inception in 1995, Patrick Team Properties has exemplified a profound commitment to its clients by providing the highest standard of service, integrity and work ethic in the field. Patri....

Want to Advertise on this Site?

Latest Blog Posts

Daylight Savings Begins On Sunday November 4

Reminder!  At 2:00 AM on Sunday morning the correct time will be 1:00 AM. Don’t forget to set your clocks (your cell phone will probably set itself)!  Did you know – Daylight

Read More

Chenoa Fund Down Payment Assistance Program

Chenoa Fund Edge Program* Buyer receives a 30 year FHA mortgage with a 2nd mortgage of 3.50% to cover the down payment. Second mortgage terms are 0% rate, no repayment on the second

Read More

Organize And Decorate Your Home For The Season

Good organization makes life flow and is also good for the soul. You might have done spring cleaning earlier in the year, but fall is another ideal time to give your home a tune-up.As you begin

Read More

ARE YOU SPENDING TOO MUCH ON RENT

Are You Spending TOO Much On Rent? Chances are if you are renting you are spending too much of your income on your monthly housing expense. There is a long-standing ‘rule’ 

Read More