return2ozma@lemmy.world to News@lemmy.world · 6 months agoRenters need to make roughly $20,000 more a year to afford the typical rent than they did 5 years agofortune.comexternal-linkmessage-square158fedilinkarrow-up1769arrow-down110cross-posted to: aboringdystopia@lemmy.world
arrow-up1759arrow-down1external-linkRenters need to make roughly $20,000 more a year to afford the typical rent than they did 5 years agofortune.comreturn2ozma@lemmy.world to News@lemmy.world · 6 months agomessage-square158fedilinkcross-posted to: aboringdystopia@lemmy.world
minus-squareFedizen@lemmy.worldlinkfedilinkarrow-up5·6 months agoif the rent is, for instance, 40% of income then the additional income is also to offset the 60% nonrental income. eg if you pay 400 in rent and now its 700 your overall income needs to go from 1000 to 1750 to maintain the same level of affordability.
minus-squareStaySquared@lemmy.worldlinkfedilinkarrow-up1·6 months agoThat’s a major issue about inflation - it’s really just an additional tax. In inflation, cost of living goes up, income/wages do not.
if the rent is, for instance, 40% of income then the additional income is also to offset the 60% nonrental income.
eg if you pay 400 in rent and now its 700 your overall income needs to go from 1000 to 1750 to maintain the same level of affordability.
That’s a major issue about inflation - it’s really just an additional tax. In inflation, cost of living goes up, income/wages do not.