Reevaluation of the 30% Housing Expense Rule Set for 2025

The 30% rule, a longstanding guideline suggesting that households should allocate no more than 30% of their gross income to housing expenses including mortgage, property taxes, and homeowners insurance, is facing reconsideration in 2025. Originating from 1969 public housing policies that limited rent to 25% of income, the threshold was increased to 30% in the 1980s to aid affordability assessments. The potential revision of this metric reflects evolving economic conditions and housing market dynamics, which may impact future regulatory and financial planning practices in real estate and insurance.