Americans Spend Over Half Their Income on Housing
Based on findings from SurveyMonkey and CNBC’s Quarterly Money Survey released Oct. 6, sixty-nine percent of Americans allocated over 25% of their pretax earnings toward housing, according to CNBC. The data shows that 20% of households spent more than half of their earnings on living costs. The Department of Housing and Urban Development sets 30% as the standard threshold for housing affordability.
American households earned a median of $87,460 pretax in 2025, based on the latest data from the U.S. Census Bureau. Applying the 30% affordability rule means these households can comfortably spend no more than $2,186.50 per month on housing.
Mortgage Rates Push Monthly Payments Above Budgets
A homebuyer putting 10% down on a $410,700 house—the median-priced home in the second quarter of 2026—and financing the remainder with a 30-year fixed-rate mortgage at 7.0% will pay $2,459 each month, per CNBC Select’s mortgage calculator. This monthly loan payment exceeds the median income affordability threshold before accounting for property taxes, insurance, and utilities.
Renting offers slightly more breathing room, though costs remain high. Realtor.com reported that in August 2026, a family leasing a median-priced two-bedroom apartment paid $1,896, leaving minimal funds for utilities and insurance.
Credit Cards Offer Rewards on Rent and Mortgages
Consumers can use financial products to earn rewards on housing payments. The Bilt Blue Card carries no annual fee and lets cardholders earn up to 1.25X points on rent or mortgage payments with no transaction fees, alongside a $100 Bilt Cash bonus upon approval. The mid-tier Bilt Obsidian Card costs $95 annually, provides $200 in Bilt Cash upon approval, and offers 3X points on dining or groceries alongside 2X points on travel.
Homebuyers can also shop for loans below the average 30-year fixed rate of 7.40%, recorded as of October 15. Adjustable-rate mortgages, 15-year fixed loans, government-backed FHA, VA, and USDA loans, and credit unions provide alternative financing paths. Rocket Mortgage and Chase Bank offer multiple loan types, catering to remote borrowers and in-person applicants respectively.
Renters and Homeowners Shop Insurance Policies
CNBC Select insurance reporter Elizabeth Knueven recommends that policyholders compare offers for renters and homeowners insurance every time a policy comes up for renewal. Consumers can lower premiums by raising deductibles from $500 to $1,000, bundling property insurance with auto coverage to save up to 40%, and maintaining strong credit scores.
Frequently Asked Questions About Housing Costs
What percentage of income do Americans spend on housing?
Sixty-nine percent of Americans spent more than a quarter of their pretax income on housing, and 20% spent more than half, according to the CNBC and SurveyMonkey Quarterly Money Survey published Oct. 6.
What was the median U.S. household income?
American households earned a median pretax income of $87,460 in 2025, according to the U.S. Census Bureau.
How much did a median-priced apartment cost to rent in 2026?
Realtor.com noted that in August 2026, a family leasing a median-priced two-bedroom apartment paid $1,896.
What was the average 30-year fixed mortgage rate in October 2026?
The average 30-year fixed-mortgage rate stood at 7.40% as of October 15.