2 ms·
> 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 ma
by 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.