![]() Property care and the related tools (i.e.No matter where you live in Canada, these are essential living expenses for almost all homeowners: Common parts of your basic living expenses list Keeping a clean, stylish, well-maintained home comes at a price, and often one much higher than you think. There’s a lot more to home ownership than just mortgage payments and mowing the lawn. It’ll help you stay on top of everything. Is the Habitat Homeownership Program right for you? Take the eligibility quiz here.Congratulations on becoming a first-time homeowner! You’re diving into a huge investment of both time and money, and the best way to make sure you’re successful is to create a basic living expenses list. Shimberg Center for Housing Studies (2019) Florida’s Rental Housing Needs: 2019 Updateħ95,603 low-income households in the State of Florida pay more than 40% of income for rent – Shimberg Center for Housing Studies (2019) Florida’s Rental Housing Needs: 2019 Update Home: A Pathway to Equity through Housing reportġ4,303 or 29% of all renters in Pasco County are cost burden and additionally, 62% of all renters between 30%-60% AMI are rent burden. In Pinellas County, 171,245 households (more than 50% renters and over 33% homeowners) are considered “cost-burdened,” meaning they pay more than 30% of their income towards housing. Yet, spending no more than 30% of one’s income on housing expenses can be an important benchmark that allows for increased financial freedom and flexibility while also demonstrating affordability. Some individuals/families will pay upwards of 70% of their total income for housing and transportation-related expenses alone.Įveryone’s circumstances are unique and take special consideration. The need for a reliable vehicle worsens financial stressors caused by unaffordable housing costs and impairs the ability to save. A 2019 AAA report estimated the annual average vehicle ownership costs as $9,282.00 per year or $773.50 a month. Locally, there is an added ‘hidden cost’ of transportation due to a lack of reliable public transportation options and lack of affordable housing close to employers. Often one emergency (job loss, illness or pandemic!) can place an individual or family in dire circumstances. Being housing cost-burdened places an individual or family at increased financial risk. Paying between 30% -50% of gross income in housing expenses is considered moderately cost burdened while paying 50% or more of gross income for housing expenses is considered severely cost burden. Total Monthly Housing Expenses ÷ Gross Monthly Income = Percentage of Gross Monthly Income Paid Towards HousingĮxample: $1,000 rent & utilities / $2,000 monthly income = 50% gross income towards housing expense To see if you may be rent/cost-burdened, divide your gross monthly income into your total monthly housing expenses Mortgage payment + taxes + insurance + utilities = ‘total housing expense’ How to calculate if you’re cost burden ![]() If you’re a homeowner: homeownership costs are calculated by adding your mortgage payment (including taxes and insurance) plus your utility costs to equal your total housing expense. Monthly rent payments + utility costs = ‘total housing expense’ If you’re renting: housing expenses are calculated by adding your monthly rent payment plus your monthly utility cost, which equals your total housing expense. On the contrary, paying anything above 30% of your gross income for housing expenses is considered ‘rent or cost burdened’. While we know times have most certainly changed, this principle still holds to this day. According to a report by the Joint Center for Housing Studies at Harvard University, this standard can be traced to its origins back to the 1800s from an adage that stated one should devote “a week’s wage to a month’s rent”. It is generally accepted and widely applied that paying no more than 30% of one’s gross monthly income for housing is considered being an affordable housing situation.
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