Yes, but it’s included in the proportion to which you buy those things. So if you’re spending a lot less on other things, but more on housing, it’s a wash for your overall expenses.

I may be misunderstanding, but doesn’t spending a greater percentage on housing necessitate spending less on other things? Someone who spends 50% of their earnings on shelter has to make more careful budgeting decisions than someone who only spends 30% on shelter. With a smaller portion of income to spend on anything else, people will put off purchases that they can’t afford. Using that proportional difference to claim “it’s a wash” sounds like circular reasoning. At least, it doesn’t seem to account for all the purchases people would have made if they weren’t putting such a high percentage toward this one basic need?