• ExLisper@linux.community
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    11 months ago

    I’m not saying that rent isn’t high but I don’t like this definition. 30% is not crazy high. I would say 20% is low, 30% is medium, 50% would be high.

    • Ranvier
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      11 months ago

      It’s a fairly typical “rule” in personal finance not to spend more than 30% of your income on housing or rent, which is probably why that’s what the study is using. You’re right it is a little conservative, and especially in cities most people have been going over that for quite a while. Some landlords will not even consider your application though if your income isn’t 3x the rent. It’s still a good idea to spend 30% or less on housing or rent, if you have the option. Not everyone does.