You Shouldn't Spend More Than 30% On Housing

Experts say that you shouldn't pay more than 30 percent of your income on housing, but a record number of Americans are doing just that. According to a new study by the Joint Center for Housing Studies of Harvard University, more than 20 million people were paying more than a third of their income on rent. And, over 70 percent of those living on $15,000 dollars a year are paying more than half their income. As American wages have stagnated, and more and more people have struggled to survive on poverty wages, the cost of housing has continued to go up. That predicament has left people with no other choice but paying a larger and larger share of their income to put a roof over their heads, which means they have even less money to spend on other things. That means less money for basic necessities, like food and clothing, and it means that people have virtually nothing left over to save or invest. This is just a problem for people trying to get by on poverty wages, it has a broader effect on our entire economy. The solution is simple – continue the fight to ensure that everyone gets paid a living wage.