Quote:
Originally Posted by 7continents
Id love to know where the tipping point between affordable according to real income or affordable as compared to whatever the market bears is.
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On paper "affordable" housing is where rent equals or is less than 33% of household income.
That being said in practice "affordable" is rather a nebulous term. What one household can easily pay per month versus another even with same income is up for debate.
Consider also far as these RS "affordable" units from lottery schemes rent only goes one way; up. Income over years must rise above increases in rent to prevent household from becoming rent burdened
In private market landlords like to see 40x rent to income ratio to ensure there is a wide enough cushion so household can comfortably pay their rent on time each month going forward.
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