Housing costs in the U.S. are on the rise, with median monthly housing costs for homeowners with mortgages hitting $2,035 in 2024. Renters are also feeling the pinch, with median gross rent reaching $1,487. Experts recommend keeping housing costs below 28% of monthly pre-tax income, but many households struggle with this due to rising costs outpacing wages.

The 28/36 rule suggests spending no more than 28% of monthly gross income on housing costs and no more than 36% on debt. This rule helps lenders determine how much additional debt a borrower can afford. For those spending too much on housing, little room remains in the budget for other essential expenses, leaving little ability to save for emergencies or long-term goals.

To lower housing costs without moving, consider refinancing your mortgage if interest rates have dropped, signing a longer lease to lock in rent prices, or sharing expenses with a roommate or renter. Making small changes like adjusting your thermostat, reducing water and energy usage, and shopping around for insurance can also help lower monthly expenses.

Rising housing costs in the U.S. are putting a strain on households, making it difficult to keep expenses within recommended limits. By exploring options like refinancing, finding a roommate, and reducing utility costs, households can work towards keeping their housing expenses manageable within their budget.

Read more at Yahoo Finance: Are You Overpaying for Your Housing? Census Data Shows What Americans Really Pay