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Very surprising that people spend 34% of their income on housing. I have always thought it unwise to spend more than 25% -- a big reason why I still rent even w
by aristus 17y ago
Very surprising that people spend 34% of their income on housing. I have always thought it unwise to spend more than 25% -- a big reason why I still rent even when people were telling me I was "throwing my money away".
- gjm11 17y agoI'll hazard a guess that the 25% figure refers to rent and mortgage payments only. If I'm understanding the chart correctly, that's what it calls "shelter" -- just one part of "housing", which accounts for 20.2% of expenditures.
- aristus 17y agoIt's a little unclear from the chart. But if you have a mortgage, you pay lots more in taxes (the "public services" bit), household insurance, and in repairs.
- tedunangst 17y agoIf you own a home you mean. If you have a mortgage, the interest is tax deductible, so you pay a lot less in taxes for at least the first half of the term.
- aristus 17y agoIt may be different in other parts of the country. In Florida, the property taxes alone were more than the cost of renting a similar place. So for a $300K condo you paid almost $13,000 in taxes to the city to pay for water roads, schools, etc.
- lutorm 17y agoHow were the people renting out the properties able to do that for less than their property tax?
- whatusername 17y agoThe magic of expected future capital gains.
- pmorici 17y agoI'm surprised it isn't more. In places on the East and West coast you have to spend close to half your take home income or else live in a complete crime ridden run down ghetto.
- Femur 17y agoIn Wichita and Tulsa (where I have lived) spending half your income on rent or a mortgage would be considered insane.