Wages in America Are Too Low for the 30% Rule to Work for Renters Anymore • Hacker News Board

Re: Wages in America Are Too Low for the 30% Rule to Work for Renters Anymore

#31

Post by selfmodruntime » Thu, Jun 18, 2026, 1:37 PM UTC

gravypod wrote: post #12

gonzalohm wrote: post #2

Is it the wages or that shitty one bedroom apartments go for $2000+

In 1970 a $300/month apartment would be ~$2000/month in today dollars. I do think rents are too high as productivity and supply chains are much more efficient. I think in the 70s we were still using black pipe for gas, iron septic lines, and copper pipes for water. But, I don't think new builds or renovations are cheaper inflation adjusted (harder to estimate). Cost of money (inflation), building, and maintenance is…

The 1970's median salary was $800 (so rent was 37%), the 2026 equivalent is $5220 or 49%.

Re: Wages in America Are Too Low for the 30% Rule to Work for Renters Anymore

#32

Post by vorpalhex » Thu, Jun 18, 2026, 1:37 PM UTC

api wrote: post #19

gonzalohm wrote: post #2

Is it the wages or that shitty one bedroom apartments go for $2000+

It’s that wages have not risen with inflation.

Aside from less than a quarter point (0.24) from Covid, wages have in fact risen with inflation and that small difference is also likely to disppear soon.

https://usafacts.org/answers/are-wages-keeping-up-with-infla...

It is in fact rents, especially with mandatory add-ons. The actual cost of renting a place is a lot more than the direct rent payment.

Re: Wages in America Are Too Low for the 30% Rule to Work for Renters Anymore

#33

Post by lifestyleguru » Thu, Jun 18, 2026, 1:37 PM UTC

selfmodruntime wrote: post #3

Not really. Rent is too high. It's not a problem unique to America. Rents in Munich, for example, have also doubled since 2012. A three-room apartment often costs between €2,200 and €2,700 per month in this city. For reference, that's close to an entire net salary for many, even for someone in the top 20% of earners in Germany, where salaries are relatively low and taxes are high. The median net income here is around…

It's quite cruel how Germans still keep up appearances with applying for the apartment with elaborate portfolio, full personal and financial data, letters and so on. While the only portfolio that matters is envelope with EUR 1500 in cash, or at least was 2-3 years ago and now is probably higher. 5-8 years ago it was maybe funny but now is simply cruel.

Re: Wages in America Are Too Low for the 30% Rule to Work for Renters Anymore

#34

Post by sethjgore » Thu, Jun 18, 2026, 1:37 PM UTC

whoknowsidont wrote: post #20

Landlords are the least productive class in society, and it's not even close in terms of ranking.

Absolutely. Rackteering party and bureaucracy always finds themselves returning in all society until killed or thrown over.

Re: Wages in America Are Too Low for the 30% Rule to Work for Renters Anymore

#35

Post by cpburns2009 » Thu, Jun 18, 2026, 1:38 PM UTC

MSFT_Edging wrote: post #14

foolfoolz wrote: post #5

Earlier quoted context omitted.

one bedroom (and living alone) is a luxury and always has been

Many localities will have co-living restrictions for single-family homes.

Apartments exist everywhere with a population over 100. Does no one rent an apartment with roommates anymore?

Re: Wages in America Are Too Low for the 30% Rule to Work for Renters Anymore

#36

Post by bantunes » Thu, Jun 18, 2026, 1:38 PM UTC

gravypod wrote: post #12

gonzalohm wrote: post #2

Is it the wages or that shitty one bedroom apartments go for $2000+

In 1970 a $300/month apartment would be ~$2000/month in today dollars. I do think rents are too high as productivity and supply chains are much more efficient. I think in the 70s we were still using black pipe for gas, iron septic lines, and copper pipes for water. But, I don't think new builds or renovations are cheaper inflation adjusted (harder to estimate). Cost of money (inflation), building, and maintenance is…

How many apartments were $300/m in 1970?

Re: Wages in America Are Too Low for the 30% Rule to Work for Renters Anymore

#37

Post by mc32 » Thu, Jun 18, 2026, 1:38 PM UTC

BugsJustFindMe wrote: post #21

mc32 wrote: post #4

[flagged]

> immigration depressed wages of Americans Immigration creates more jobs than it takes away and generates net wage growth. Immigrants don't just work. They also consume and they also start their own businesses. This has all been measured to death. There's no reason to ignore the research on this. https://www.brookings.edu/articles/what-immigration-means-fo... https://insight.kellogg.northwestern.edu/article/immigrant…

You’re skipping the meat here. We’re saying it hurts people at the bottom most. Low skills immigrants compete directly against low skills Americans. Even Paul acks that. So did Bernie before he changed his tune. We’re not talking overall. We’re talking people at the bottom.

We’ve seen where feds sweet for illegal immigrate plants up their wages to attract locals who then enter the job market.

Poorly educated immigrants are not the bulk creators of jobs that’s higher ed immigrants. Not the same pool of people.

Re: Wages in America Are Too Low for the 30% Rule to Work for Renters Anymore

#38

Post by e12e » Thu, Jun 18, 2026, 1:38 PM UTC

selfmodruntime wrote: post #3

Not really. Rent is too high. It's not a problem unique to America. Rents in Munich, for example, have also doubled since 2012. A three-room apartment often costs between €2,200 and €2,700 per month in this city. For reference, that's close to an entire net salary for many, even for someone in the top 20% of earners in Germany, where salaries are relatively low and taxes are high. The median net income here is around…

The 30% assume gross, pre tax income - not net.

Ed: obviously the 50/30/20 rule sums to 100% so would need to be net - although the US is weirdly treating health insurance as a "premium service" that go into the 50% here, not into taxes like in a modern society.

Re: Wages in America Are Too Low for the 30% Rule to Work for Renters Anymore

#39

Post by rafram » Thu, Jun 18, 2026, 1:38 PM UTC

nullorempty wrote: post #17

foolfoolz wrote: post #5

Earlier quoted context omitted.

one bedroom (and living alone) is a luxury and always has been

Not true. Rent for one bedroom apartment was 500$ in 1998, cold / hot water included other utilities are extra. I was making 35K back then and it was enough to afford relatively good living - car, groceries, gas, occasional meal for 2 at a restaurant. And gas was 35cents on the Wet Coast of Canada.

$35,000 in 1998 is $72,500 in 2026, which is still a totally fine income. I know people living pretty well on that in New York City.

Re: Wages in America Are Too Low for the 30% Rule to Work for Renters Anymore

#40

Post by margalabargala » Thu, Jun 18, 2026, 1:38 PM UTC

mc32 wrote: post #4

[flagged]

Four years ago it was nearly impossible to find an employee for most jobs. Immigration hasn't been all that much since. There are other factors outweighing immigration (in the US).

Large shortages of labor across all sectors may raise some wages but also causes inflation and leaves us worse off.