That old advice to spend no more than 30% of your income on housing may no longer work.
A new Bankrate analysis finds the typical U.S. household now needs to spend about 43% of its income.
Higher prices, elevated mortgage rates, and fewer homes for sale are squeezing buyers.
So, what can you do?
First: Ditch the 30% rule and focus on a comfort range. What you can afford while still saving for emergencies and paying bills?
Expand your search. Prices can drop considerably if you look 20 to 30 minutes outside a major metro area.
Also, don't assume buying is always better than renting. Run the numbers on buying versus increasing your other investments.
And, remember renting longer could help you build a bigger down payment.