15% of your income

[pawanjain]

almost 10 years ago, i read that your rent or whatever you pay for your home should not exceed 15% of your monthly income. now in 2026, many reports are saying that there definitely is a housing crisis.

with some saying this could be worse than the 2008 crisis. do you still believe that only 15% of your income goes to rent or house expense? is housing expense your biggest expense monthly?

Its the first time I am hearing this. Not sure about what % of income should go on house rent but I know that 30% of income can go towards an EMI for home loan.
I kinda agree to both of these though. 15% as rent or 30% as EMI is what one should target to live a peaceful life and have no stress about the house.
Housing expense is definitely the biggest expense from my income but I certainly don't think we are in a housing crisis because many people around me are buying houses.

[Razmirraz]

almost 10 years ago, i read that your rent or whatever you pay for your home should not exceed 15% of your monthly income. now in 2026, many reports are saying that there definitely is a housing crisis.

with some saying this could be worse than the 2008 crisis. do you still believe that only 15% of your income goes to rent or house expense? is housing expense your biggest expense monthly?

The housing crisis has become a serious issue recently, especially in big cities, so that many people have to spend up to 15% of their income on rent or other housing costs. But if you're asking whether housing is the largest monthly expense, I can only answer that it depends on each individual. Some people may have other, larger expenses, such as education and healthcare. In addition, the prices of several basic necessities have also increased in recent years, but you have to do something more sensible to reduce expenses, such as reducing the prestige of pretending to live a luxurious life amidst economic limitations.
Moving to the suburbs or choosing to live in a village is an alternative to maintaining economic stability. There, you can buy land or a simple house at a lower price than in the city. This way, the rental costs that reach 15% of income can be allocated to other needs.

[rezakurnia66]

Its the first time I am hearing this. Not sure about what % of income should go on house rent but I know that 30% of income can go towards an EMI for home loan.
I kinda agree to both of these though. 15% as rent or 30% as EMI is what one should target to live a peaceful life and have no stress about the house.
Housing expense is definitely the biggest expense from my income but I certainly don't think we are in a housing crisis because many people around me are buying houses.

Decreasing under 15% rent house still possible you can rent the smaller and have lower rent of house but its not really comfortable if you have family, if you still single maybe you can life with smaller house or in my environment they rent only for bedroom only. Housing most expensive right now exactly you pick the most strategic location maybe up to 30% you must spent for rent house, but if you want decreasing budget rent house choose located far from the crowds but you must spent out for transportation cost.
However having comfortable house make us full enjoying our life although must spent out 15% to 30% of our income, just difficult have saving assets in the future if spent out much for renting house.

[Bitcoin Smith]

In my country, people pay around 30-40% as rent in the city locations, if they need a decent house that is why both husband and wife are forced to work to maintain the financial struggle because everything became expesinve and the opportunity to spend money also a lot higher compared to 20 years before so this is the time that you pay more to enjoy the life that you feel comfortable.

You reminded me of how things were when I was younger.  Mothers are always at home to take care of children because they are not working. The income of the fathers was enough to cover the home expenses. Now, both parents need to work hard to make the home survive. Even young children who are a few months old are kept in daycare to enable the mother to work. This is a clear illustration that the perception that house rent would take just 15% of one's income is outdated. It.was attainable in the eighties and late nineties.

Let me give the clear picture, 50 years ago one can buy a villa in a good location with 3-5 years of savings, whatever it can be but it was possibly but now look at the same scenario it requires 30 years to own the same villa that just prives the prices went like 6x due to inflation and a lot other thing but our salary appraisal is just crawling while everything is happening.

Smart move would be don't own a house because paying is cheaper while we can use that extra money to invest and get them to buy the one we wanted earlier than 30 years at the current rate.

[noorman0]

Let me give the clear picture, 50 years ago one can buy a villa in a good location with 3-5 years of savings, whatever it can be but it was possibly but now look at the same scenario it requires 30 years to own the same villa that just prives the prices went like 6x due to inflation and a lot other thing but our salary appraisal is just crawling while everything is happening.

Someone who can afford to buy a villa with only 5 years of savings is extraordinary. With the same current scenario, they would be able to afford that. They will always be in the business circle where making money is easy. Inflation is only a small obstacle that can usually be overcome if basically their financial level exceeds that of the average person. Everyone occupies their own economic level, if someone has to move down a level it means they are running a different scenario.

[Peanutswar]

almost 10 years ago, i read that your rent or whatever you pay for your home should not exceed 15% of your monthly income. now in 2026, many reports are saying that there definitely is a housing crisis.

with some saying this could be worse than the 2008 crisis. do you still believe that only 15% of your income goes to rent or house expense? is housing expense your biggest expense monthly?

Actually depends where does the house is for example you are in private subdivision you need to have an additional cost of HOA but it seems its just a small portion, also buying a house too must need to considered if they are nearby to the necessities the near in the city of course the higher the price of per square meter and if you have a budget its okay of course but if you still short with it you will possibly look for the other next city or else rather rent a house I do consider too the transportation to the work and the distance to the essential things if its worth it to buy a house or not because if you tried to compute and its on the same price but the distance is quite far why not considering near houses.
Not all of us can afford a house, others took a house loan just to have their own dream house so i guess it's quite fair enough with the amount of 15% as long as it also covered the maintenance and other necessities.

[Nothingtodo]

almost 10 years ago, i read that your rent or whatever you pay for your home should not exceed 15% of your monthly income. now in 2026, many reports are saying that there definitely is a housing crisis.

with some saying this could be worse than the 2008 crisis. do you still believe that only 15% of your income goes to rent or house expense? is housing expense your biggest expense monthly?

No, in my case, it is not possible to pay my rent with 15% of my monthly income because the rent in the area where I live is relatively high, which makes my rent exceed 25% of my monthly income.
It becomes very tough to pay for my family expenses and my children's education expenses with the remaining 75%. Maybe in 2010, the industrial revolution did not happen in the area where I lived, due to which the cost of housing was much lower. At that time, it was possible to pay 15 percent less rent, but now my area is known as an industrial area, due to which the rent in this area is relatively higher than other areas. That is why currently my monthly salary goes to increase the cost of housing by 25 percent.

[virasog]

No, in my case, it is not possible to pay my rent with 15% of my monthly income because the rent in the area where I live is relatively high, which makes my rent exceed 25% of my monthly income.
It becomes very tough to pay for my family expenses and my children's education expenses with the remaining 75%. Maybe in 2010, the industrial revolution did not happen in the area where I lived, due to which the cost of housing was much lower. At that time, it was possible to pay 15 percent less rent, but now my area is known as an industrial area, due to which the rent in this area is relatively higher than other areas. That is why currently my monthly salary goes to increase the cost of housing by 25 percent.

Another problem is the inflation and increase in the prices of everything but the only thing is the our income didn't increase with that pace. This is the reason that when you compare the rent with your income, the percentage seems to be increased as now we have to pay more rent but on the flip side, our income hasn't been increased with that pace.

The people doing job suffer more from this as the companies never raises the employee income as compared to the prices of commodities getting increase. The businessman is better placed in this situation as he is able to increase the product / service cost.

[Hanadawa]

Let me give the clear picture, 50 years ago one can buy a villa in a good location with 3-5 years of savings, whatever it can be but it was possibly but now look at the same scenario it requires 30 years to own the same villa that just prives the prices went like 6x due to inflation and a lot other thing but our salary appraisal is just crawling while everything is happening.

Inflation is truly a disaster for today's young generation. I remember my parents telling me that in the past, the average person aged 25-35 already owned a home because their savings of five years (if they were single, or ten years if they were married) were enough to buy a comfortable home. Now, with the same scheme and the same location, it would take you more than 20 years to buy the same home. I agree with you that inflation is rising faster than salaries. But the positive side is that in this day and age, someone can earn a lot of money more quickly if they are able to adapt and utilize digitalization to generate income. Now, someone in their 20s can earn tens of thousands of dollars just from social media. That was something that was impossible in the early 2000s or before the internet and social media era.

[Bitcoin Smith]

~. But the positive side is that in this day and age, someone can earn a lot of money more quickly if they are able to adapt and utilize digitalization to generate income. Now, someone in their 20s can earn tens of thousands of dollars just from social media. That was something that was impossible in the early 2000s or before the internet and social media era.

People always made money and with internet they have access to everything but it is not easy or even possible for everyone. Yes it is true that social media people are earning in millions just by posting stuffs and things but look at the failed people they also does the same thing but somehow they are failed, due to algorithm or not having enough network to build their initial audience or whatever, making money on social media isn't easy either.

[Youngrebel]

almost 10 years ago, i read that your rent or whatever you pay for your home should not exceed 15% of your monthly income. now in 2026, many reports are saying that there definitely is a housing crisis.

with some saying this could be worse than the 2008 crisis. do you still believe that only 15% of your income goes to rent or house expense? is housing expense your biggest expense monthly?

There are somethings that are supposed to be a certain way but ironically life turns them to be a different way. Like this case you mention is one of them.
On a daily basis cist of living is on the constant hike. As the cost of living increases the income and wages are almost stagnantvand bot increase in an equivalent proportion to the cost of living.  So how do we match our incomes to our basic needs is the real problem.
House rent for example,  before you could pay up at once from a monthly income without shaking but would, you have to save up for months before being able to pay up a year house rent. The circle goes on and on. Life is not as easy as it was before hence allot of abnormalities happen and there's nothing that can be done except the cost of living also comes down.