In pretty much every analysis involving housing costs, I try to mention that percentage of income spent on housing is not a great metric. A better metric is absolute income minus housing costs.
All else being equal, I would gladly earn $1 million per year and spend 75% of it on rent, because that remaining 25% would be a heck of a lot of money.
I doubt this metric would significantly change the conclusions of this article, but I’d like to see that metric used.
All else being equal, I would gladly earn $1 million per year and spend 75% of it on rent, because that remaining 25% would be a heck of a lot of money.
I doubt this metric would significantly change the conclusions of this article, but I’d like to see that metric used.