A household is typically considered housing cost burdened when it spends more than 30% of gross income on housing.
Severity Levels
- Cost burdened: >30%
- Severely cost burdened: >50%
Why This Metric Matters
High housing burden leaves less room for healthcare, education, emergency savings, and retirement contributions.
Policy and Market Implications
High-burden metros often face pressure around zoning, supply, and wage growth. It is both a household metric and a regional planning signal.
Relocation Use
When evaluating cities, compare both current burden and trend direction. A city improving from severe burden to moderate burden may offer better forward risk than a city moving the opposite way.