Americans Spend Too Large a Portion of Their Income on Housing
A new compilation of data reveals that Americans are spending nearly a third of their income on housing, which is putting them at risk of being unable to afford other necessities, according to the federal government.
A new visualization at HowMuch.net reveals what an average budget looks like for an American worker earning $75,000 a year before taxes. The data visualization shows that housing by far eats up the biggest chunk of costs. The graphic was compiled using data from the Bureau of Labor Statistics.
The issue here is that as housing prices continue to rise, many Americans are seeing the American dream slip away. A map from last week created by HowMuch.net showed how much debt the average American family would acquire if they wanted to live in some of the most populous cities in America. The results revealed that most major hubs in the U.S. are all but closed off to the average American.
In the case of the data visualization, a person earning $75,000 a year will spend on average $18,886 on housing. This accounts for more than healthcare, entertainment, clothing, and other miscellaneous expenses combined, which tally up to $15,342.
Transportation and housing combined to be almost as expensive as everything else you’ll buy all year, combining for about $27,935, meaning that Americans are increasingly being left with empty pockets after accounting for all necessity spending.
And that doesn’t account for those who don’t earn such a high gross annual income or aren’t able to combine incomes with their partners.
All in all, the data visualization shows what Americans have been seeing for a while: A skyrocketing housing market that is great for those who are already homeowners but punishes others who do not own property and are looking to buy, creating a further divide between the haves and the have-nots.
“See How Your Spending Compares to the Average Joe’s,” HowMuch.net, September 5, 2017.