{"id":264,"date":"2017-01-16T17:30:01","date_gmt":"2017-01-16T17:30:01","guid":{"rendered":"http:\/\/www.bostonpropertyreports.com\/?page_id=264"},"modified":"2017-01-16T17:35:01","modified_gmt":"2017-01-16T17:35:01","slug":"why-spending-30-of-your-income-on-rent-is-no-longer-possible-in-most-of-america","status":"publish","type":"page","link":"http:\/\/www.bostonpropertyreports.com\/?page_id=264","title":{"rendered":"Why spending 30% of your income on rent is no longer possible in most of America"},"content":{"rendered":"<div id=\"pl-264\"  class=\"panel-layout\" ><div id=\"pg-264-0\"  class=\"panel-grid panel-no-style\" ><div id=\"pgc-264-0-0\"  class=\"panel-grid-cell\" ><div id=\"panel-264-0-0-0\" class=\"so-panel widget widget_sow-editor panel-first-child panel-last-child\" data-index=\"0\" ><div\n\t\t\t\n\t\t\tclass=\"so-widget-sow-editor so-widget-sow-editor-base\"\n\t\t\t\n\t\t>\n<div class=\"siteorigin-widget-tinymce textwidget\">\n\t<p>Remember the old saw about not spending more than 30% of your salary on rent?<\/p>\n<p>Good luck with that. In 2017, that metric is achievable in only 14% of major metro areas, according to a report out Thursday from Attom Data Solutions. In fact, the median amount renters spend across the nation is 38.6%.<\/p>\n<p>Attom\u2019s \u201cRental Affordability Report\u201d compiles information about the cost of renting and of purchasing a median-priced home in more than 500 metro areas to enable comparisons about which option is more affordable.<\/p>\n<p>But as Attom Vice President Daren Blomquist told MarketWatch, while crunching the numbers can be an interesting exercise, \u201cin many markets it\u2019s pick your poison \u2014 both are pretty unaffordable.\u201d<\/p>\n<div id=\"ad-teads\" class=\"ad module    pixel \" data-name=\"Teads\" data-conditions=\"16\" data-proximic=\"true\" data-google-query-id=\"CO2b_5yYx9ECFY7PvAodqrQBWg\">\n<div id=\"google_ads_iframe_\/2\/marketwatch.com\/commentary_capitolrpt_2__container__\"><iframe id=\"google_ads_iframe_\/2\/marketwatch.com\/commentary_capitolrpt_2\" title=\"3rd party ad content\" name=\"google_ads_iframe_\/2\/marketwatch.com\/commentary_capitolrpt_2\" width=\"1\" height=\"1\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\" data-mce-fragment=\"1\"><\/iframe><\/div>\n<\/div>\n<p>Renters in the Marin County\/San Francisco metro area will spend over 77% of their salary, on average, to pay rent in 2017. But purchasing a home there would cost even more: 104% of the average paycheck for the median-priced home, which is a whopping $950,000. That means that it\u2019s more affordable \u2013 for now \u2013 to rent there, even though Attom forecasts rents will rise 29% over the coming year, compared to a 4.4% increase in the price of homes for purchase.<\/p>\n<p>San Francisco is well-known for its <a class=\"icon none\" href=\"http:\/\/www.marketwatch.com\/story\/cant-afford-to-buy-a-home-in-san-francisco-move-here-2016-10-05\">outsize housing costs<\/a>, but it\u2019s far from the only city where the decision to rent or buy means spending most of your paycheck or all of it.<\/p>\n<p>Attom\u2019s data shows that buying is more affordable than renting in two-thirds of all metros. (The median amount of income required to buy a home nationwide is a bit lower than what\u2019s required to rent, at 36.6%).<\/p>\n<figure class=\"article-figure NS\">\n<div class=\"article-image-wrap shareable\" data-share-text=\"Why spending 30% of your income on rent is no longer possible in most of America\" data-share-modprefix=\"mw_image_\"><img data-recalc-dims=\"1\" decoding=\"async\" class=\"article-image NS\" src=\"https:\/\/i0.wp.com\/ei.marketwatch.com\/\/Multimedia\/2017\/01\/04\/Photos\/NS\/MW-FD096_rent_b_20170104160302_NS.jpg?w=780\" \/><cite><\/cite><\/p>\n<div class=\"social-container\">\u00a0<\/div>\n<\/div><figcaption>The two metros where it\u2019s priciest to buy, to rent, and the two that match the national median for both.<\/figcaption><\/figure>\n<p>But Blomquist points out that <a class=\"icon none\" href=\"http:\/\/www.marketwatch.com\/story\/mortgage-rates-tumble-snapping-9-week-rising-streak-2017-01-05\">rising mortgage rates<\/a> may change that equation significantly.<\/p>\n<p>Read: <a class=\"icon none\" href=\"http:\/\/www.marketwatch.com\/story\/housings-big-question-what-will-happen-when-buyers-think-4-rates-are-crazy-2016-12-22\">Housing\u2019s big question \u2014 what will happen when buyers think 4% rates are \u2018crazy\u2019<\/a><\/p>\n<p>But whether Americans choose to rent or buy, the lack of affordability for both options, throughout so much of the housing market, not just swanky coastal areas, is its \u201cbiggest risk\u201d in the future, Blomquist said.<\/p>\n<p>\u201cI think the risk is that you see a widening gap between who can afford to buy a home and who can\u2019t and it becomes a self-fulfilling prophecy that those folks who aren\u2019t able to afford to buy can\u2019t build wealth through real estate. That\u2019s not a healthy broad-based housing market, it\u2019s a housing market that\u2019s the realm of the few.\u201d<\/p>\n<div id=\"related-articles\" class=\"module\">\u00a0<\/div>\n<\/div>\n<\/div><\/div><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>Remember the old saw about not spending more than 30% of your salary on rent?Good luck with that. In 2017, that metric is achievable in only 14% of major metro areas, according to a report out Thursday from Attom Data Solutions. In fact, the median amount renters spend across the nation is 38.6%.Attom\u2019s \u201cRental Affordability [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_seo_schema_type":"","footnotes":""},"class_list":["post-264","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P8hgrY-4g","jetpack-related-posts":[],"_links":{"self":[{"href":"http:\/\/www.bostonpropertyreports.com\/index.php?rest_route=\/wp\/v2\/pages\/264","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.bostonpropertyreports.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"http:\/\/www.bostonpropertyreports.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"http:\/\/www.bostonpropertyreports.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.bostonpropertyreports.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=264"}],"version-history":[{"count":2,"href":"http:\/\/www.bostonpropertyreports.com\/index.php?rest_route=\/wp\/v2\/pages\/264\/revisions"}],"predecessor-version":[{"id":268,"href":"http:\/\/www.bostonpropertyreports.com\/index.php?rest_route=\/wp\/v2\/pages\/264\/revisions\/268"}],"wp:attachment":[{"href":"http:\/\/www.bostonpropertyreports.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=264"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}