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Are You Spending TOO Much on Rent?

Chances are if you are renting you are spending too much of your income on your monthly housing expense. There is a long-standing ‘rule’ that a household should not pay more than 28% of their income on their rent or mortgage payment. This percentage allows the household to save money for the future while comfortably covering other expenses. According to new data released from ApartmentList.com, 49.5 million renters in the United States were cost-burdened in 2017, meaning they spent more than 30% of their monthly incomes on rent. When a household is cost-burdened by their monthly housing expense, they are not as easily able to save money for the future. The percentage of income needed in the US to buy a home is significantly less than renting at 17.1%! As you can see, the cost of renting has climbed above historic numbers while the cost of buying dropped over the same period of time. Bottom Line If you are one of the many renters who is spending too much of their monthly income on rent, consider saving money by getting a roommate, moving into a less expensive apartment, or even moving in with family. These are all ways to save for a down payment so that you can put your housing costs to work for you! Members: Sign in now to set up your Personalized Posts & start sharing today!