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.

[pawanjain]

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.

May be if we decrease our expenses then we will be able to manage our other expenses well.
In the country I live in, we can easily afford a house with just 15% of our income but yeah, in other countries the rent rate might be on the higher side.
It also depends a lot on the area and the type of house we choose to live in. Lifestyle matters a lot in such scenarios.
We need to adopt our lifestyle based on our income obviously. We can't be living a luxury life at low incomes.

[jostorres]

You can still stick to that but never expect to live comfortably. Because the truth is, not only the house rental is expensive but everything around us, our basic needs and wants come with high cost. The reason why its hard saving these days, especially if you are just living paycheck to paycheck.

However, if you work and make some investments at the same time, your income will also increase. Then maybe by that time 15% is good enough, even if it means covering everything just to make your family live conveniently.

I can't help but agree with you on that. If we are paying only 15% or lower of our income towards rent, it basically means that we are compromising on our residence because you can surely not get a comfortable living place considering the rising inflation around the world, which means that you will only have a normal place for living, no luxury or anything, only the basic things and most probably only a small place with no much room or space.

When we spend more money on rent, it is so that we can get a better place, especially if we are living with our family.

Most people around the world only earn an average income because they are employed, the percentage of people who own businesses is lower, which means that most people actually pay more than 15% of their income towards rent because if you are not making a lot of money, 15% of your income will not be a lot, and even a normal apartment or house will cost that much in any place around the world, unless you live in a completely rural area but then your income will also be accordingly.

[barisbilgili]

~. 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.

It is indeed not easy, but it is quite possible for them to achieve if they do it sincerely, and there is already a lot of evidence that making money from the internet is something many people manage to do, so some of them have just not reached their time yet, and if they do it sincerely, I am sure they will be able to get it.

With the development of the times, it makes it easier for many parties to increase their income, that's true, and therefore I think the distribution of percentages for someone's needs will be easier because the amount of money is larger.

[Marvelockg]

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.

Some scenarios are just hypothetical because for someone that's financial strong enough to buy a vila from his savings, it's likely what he's saving is not even In percentage and that he's investing rather than savings. Of cause, what seems to be possible for an average person to do in the past is now what only the rich can afford  and so as time changes, we have to learn to also change with it knowing fully well that for us to gain result that earlier investors or savers had, we will have to do even more.

There's a stand I've always held and that's the fact that if I can't do it now, then there's every likelihood that if I were present in the past that I would not be able to do it also at the time. The rule is simple, just flow the way things is going in the dispensation you've come to witness. No need for a backwards comparison.

[Bitcoin Smith]

~
There's a stand I've always held and that's the fact that if I can't do it now, then there's every likelihood that if I were present in the past that I would not be able to do it also at the time. The rule is simple, just flow the way things is going in the dispensation you've come to witness. No need for a backwards comparison.

So just accept whatever it is and work the entire life to make someone else rich? Asking question is basic human right is every country except if I am from North Korea.

I will raise the question, because I didn't do anything wrong, I am doing the same or even more work before than someone who did in the past then why I have to lose more of my precious life, which is all because of the government's crooked system not because of my failure.

[Bright0515]

Well all I can say about this is that is that this standard that's set cannot be for everyone, if you are saying that 15 percent should be the amount people pay from their income annually you should also consider the fact that everyone does not earn the same amount of money, 15 percent is actually small but for those that earn big it is actually a lot but like said this shouldn’t be a general standard because it does not apply to everybody. The best thing is for people to just stick to what they csn afford to pay annually

[batang_bitcoin]

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.

This is what's happening for most employees. They're not getting that much salary compared to what they really need in order for one of them to attain housing loans and other benefits that they can to live on their lives. But there's also a basis on it and depending on the tenure of the employees. So, that 15% of income for the rent or mortgage should just be fine but here goes the reality that it's more than that and maybe doubled or tripled goes only to that expenses by the majority who don't own a house yet.

[Ab de villiers]

Housing expenses isn't my biggest expenses. Feeding is. Anyone who has housing as their biggest challenge, is occupying what their financial muscles can't carry. I will continue to maintain that once anyone's annual rent exceeds their two months salary, that rent is above them. That's how I gauge mine. There's education needs, there's health maintenance, there's investment to be made, dependence allowances etc. If anyone spends heavily on rent, how can they take care of those others? It doesn't make sense to abandon one for others

For me, feeding tops the list. I spend like X5 on feeding of what I spend on rent monthly.

In this time where  most of the people used to bear the cost of rent or other house hold expenses but I face education expenses. Most part of my salary is goes towards paying my fee. It's not only about institute charges but I have to face many other charges in the name of enrollment registration, examination and the stories not end here I have to bear transportation cost beside it. So because of this long list of education expenses, allocating 15% is very low percentage. I have to spend almost 30% of my budget to bear education expenses. I hardly manage all these just to secure my future and but at the same time I often worry about if I got not suitable job after completing my education . I am still not sure about where would I stand economically in future. Means after spending so much money on the education till I am not sure about my future economic condition. That's not only my tention but it is the tention of all youngster of my age.

[abhiseshakana]

In this time where  most of the people used to bear the cost of rent or other house hold expenses but I face education expenses. Most part of my salary is goes towards paying my fee. It's not only about institute charges but I have to face many other charges in the name of enrollment registration, examination and the stories not end here I have to bear transportation cost beside it. So because of this long list of education expenses, allocating 15% is very low percentage. I have to spend almost 30% of my budget to bear education expenses. I hardly manage all these just to secure my future and but at the same time I often worry about if I got not suitable job after completing my education . I am still not sure about where would I stand economically in future. Means after spending so much money on the education till I am not sure about my future economic condition. That's not only my tention but it is the tention of all youngster of my age.

I think the problem you faced actually structural society problem, inflation makes education cost increasing faster than income. Everyboday will please paying expensive fee as long as there are outcome guarantee, but mater of fact good and higher education does not guarantee getting good job and be success. For me higher education always be a high risk long investment because it takes a long time to bear fruit and the results are also full of uncertainity.

To avoid further stress, i suggest you focus on earning your capacity, as student do not only studying but learn how to build competence, capability and quality, especially sellable skill. In these portfolio review era i/o certification, clearly show that proof of work is more valuable than title/degree. You must put on your mind you are not buying future but you are on process building your ability.  For 30% of education fee still realistic on your age, reduce expenses almost impossible so the best you can do is increase the probability of the outcome and how to get additional income.