This is an amazing statistic. The average family in the United States spends 60% of their income on housing and transportation according to HUD. That is an amazing number.
The average working American family spends nearly 60 percent of its budget on housing and transportation costs, making these two areas the largest expenses for American families. Donovan and LaHood want to seek ways to cut these costs by focusing their efforts on creating affordable, sustainable communities. via HUD.gov
Of course, this also does not bode well for the housing and automotive industries. The stress of trying to maintain all of the other expenses of living in 40 percent of ones income has got to be wearing on consumers. With tight credit and rising unemployment families will be looking to live within their means thus lowering demand for these industries.
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Sad to think that it is true, but I just did I mental calculation and that seems about right. Most of my money is gone just keeping the roof over my head and food in the kitchen.
I know when gas prices went way up last summer, it seemed like everyone was re-evaluating what they could afford to spend on a house. That combined with a slow down in construction and related industry which contributes to roughly 33% of our local economy, job losses and lack of work has hit hard to the point of those housing and vehicle costs being even higher than 60% of income for a large group of people.
I am about to commit myself to purchasing a house, as I need one for wedding. And yes, after some calculation, I will spend around 50% of my salary on housing + transportation.
This article is an eye-opener, but it makes sense. Think about what most people's two biggest payments are. Mortgage and Auto loan. That easily can amount to well over half of most people's total budget.
I wonder what the number is for interest payments on credit cards and other types of loans. Between that and regular living expenses, it is no wonder why people spend over 100% of their annual income.
If I remember right, people used to pay 30% of their living expenses towards housing so even though this 60% number includes transportation, it is still a huge increase.
Amazing information, but when you think about it, very believable. I wonder how people are expected to feed and clothe their families, not to mention the occcasional outing. Let's not forgt all the taxes we have to pay for just about everything but the air we breathe, although I'm sure they will figure out a way to do that too eventually.
so it is better if we have our own home. we can really save a lot rather than renting. transportation, it is a must, if we have cars then it is normal if we gas up.
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