There is an age old adage that your monthly housing expense should never be above 30% of your after tax income that I think is completely irrelevant in today's rental and housing market.
I'm curious to see what the average renter's/home owner's monthly expense including everything (HOA, utilities, PITI, etc) relative to after tax income is on a monthly basis.
I am currently at 32% in a major SE metro.
I thought it was gross income, not after tax
Streaming subscriptions? I thought we were talking about housing, not pornhub premium.
0% under mom's roof, unless you factor in the high opportunity cost...
Your missing out on prime POON
nah, his mom's is pretty prime
the 30% rule is gross, not net (same math as the NYC rule that your salary should be 40x your monthly rent).
currently just under 11% gross. Live frugally with GF.
I love having a working wife who doesn't care about having a big house.
I'm currently around 10% of gross in a major SE city
Only 10% dedicated to housing leaves so much room for activities
Really should be adding in the cost of having a car when comparing tier-2 cities to places like NYC as you probably will need a car to get around in the former and not in the latter.
For example, it you spend $1500/month on rent on a $100K salary, that's 18% gross spend on housing. But taking into account having a car at say~$500/month (payment, gas, insurance, etc), then that number becomes 24%, much closer to what people pay in places like New York.
To be fair, you should also add-in the cost of getting around in NYC too (taxis, subway, etc). But even then, I would say the difference isn't quite as pronounced as it originally may seem.