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This sounds like the market has reached equilibrium with the average dual income family paying 35% of their gross income on shelter. 35% is a touch high but no
by jddj 2y ago
This sounds like the market has reached equilibrium with the average dual income family paying 35% of their gross income on shelter.
35% is a touch high but not out of line with the 30%ish recommendations from banks/estate agents over the years.
It might be an issue that the cost of the average 1br flat isn't attainable on a single average income. But I think we can see how we arrived here.
- motorest 2y ago> This sounds like the market has reached equilibrium with the average dual income family paying 35% of their gross income on shelter. You need to redo your math. The effort rate is calculated taking into account all fixed monthly expenses, not just rent. By your own numbers, rent alone is already higher than the maximum admissible effort rate for a household with above average incomes. On top of this you still need to account for your actual cost of living. You're looking at a scenario where a household with an average or above average income has to endure a effort rate well above 40%-50% to afford living in Barcelona. To make matters worse, in Barcelona rents do not drop that much even if you start to entertain commutes of well over 2h/day. There's nothing healthy about it.