whitemice's blog

Housing for only for the rich?

There is no shortage of comments aghast at the cost of the new urban-core apartments. They are even referred to as housing for the "supra-rich". These apartments tend to start at $800 for a studio, $1,000 for a one-bedroom unit, and $1,200 and up for a two-bedroom unit.

But lets break down the numbers. Ball-park estimates of what percentage of net income someone should spend on housing varies between 25% and 40%. The mortgage agencies Fannie Mae (FNMA) and Freddie Mac (FMCC) use a 28% of income cut-off.

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