I am currently reading an interesting, though a little depressing, book called "At Home: A Short History of Private Life" by Bill Bryson. I am certain I will be blogging about this book more in the future because it is filled with interesting information about the history of homes and rooms in homes more specifically.
Early in the book I read something that gave me a unique perspective on a topic many home buyers face today: debt-to-income ratios. Basically, through typical underwriting requirements for home mortgages, most lenders dictate a maximum total debt-to-income ratio of 38% for their average borrower, and that their housing debt be no more than between 28% and 33% of their monthly gross (pre-tax) income.
According to Bryson, in nineteenth century England, "Up to 80 percent of all household expenditure... was spent on food, and up to 80 percent of that went toward bread."
Think about that for a minute. Almost two-thirds of all money was spent on bread! Today, my understanding is that the average American household (appreciating that there are likely wide variations) spends about 25% on food. Housing is a high expense for many people, but I was stunned by this glimpse into history.
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