3 ms·

The rule is not spending MORE than 30% on housing at most, not that everyone should be aspiring to spend exactly 30% on housing.

• marssaxman 5y ago
  Having spent most of my adult life in Seattle, the idea of spending 30% of one's income on housing often seems like an aspirational lower bound.
  • mbg721 5y ago
    That's either hyperbole or insane, from a Midwest perspective.
    • marssaxman 5y ago
      The median house price in Seattle last month was $889K. On a 30-year mortgage with 4.5% interest, that'd cost $3900/month with 20% down, or $4900 with a more-plausible 5% down payment. The median household income in Seattle last year was just over $102k, which is $8500/month before tax... so we're looking at 45-55% of income going to housing. Too high? Don't buy, just rent? Great, the average 2-bedroom apartment in Seattle goes for $3400... that gets us down to 40%. It's not the same kind of city as the one I moved back to twenty-plus years ago, that's for sure.