The majority of U.S. residents earning less than $50,000 a year are struggling to afford their regular mortgage or rent payments, with some resorting to skipping meals just to make ends meet, according to a Redfin survey.
The survey, commissioned by the real estate firm, found that 74% of respondents earning under $50,000 either sometimes, regularly or greatly struggle with their housing costs. Around 25% of them have skipped meals to afford their monthly housing costs. According to the survey, skipping meals is one of the most commonly cited sacrifices among people in that income bracket.
AMERICANS NEED SIX-FIGURE SALARIES TO AFFORD A HOUSE IN MOST CITIES, NEW ECONOMICS REPORT SHOWS
Among that income cohort, 43% said they were eating at restaurants less often and 36% were taking fewer vacations or nixing them altogether. About 25% said they were borrowing money from friends or family to stay afloat.
About 23% also admitted that they sold some of their belongings to afford their housing payments and just more than 20% delayed or skipped medical treatments, according to the survey.
However, a majority of consumers across income groups have been hindered by surging rental and home-sale prices over the last five years.
Although wages have increased over that time, they haven’t outpaced housing costs.
HIGH HOUSING COSTS HITTING RECORD HIGHS, HARVARD UNIVERSITY REPORT SAYS
According to Redfin data, U.S. rental costs have largely flattened over the past year, but are still up 20% compared with pre-pandemic times.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| RDFN | REDFIN CORP. | 8.00 | -0.37 | -4.42% |
In October, Redfin reported that the number of renter households paying under $1,000 in monthly rent fell to 32.1%, the lowest share on record.
Meanwhile, the cost of buying a home has surged, with median housing prices rising more than 40% since pre-pandemic times.
The sharp increase in home prices, coupled with high borrowing costs, pushed homeownership out of reach for many people, especially those earning under $50,000.
Redfin reported in September that homebuyers need to earn at least $76,995 per year to afford the median priced starter home, which is about $250,000.
For context, home prices were up 5.2% in October compared with last year, selling for a median price of $435,051.
Read the full article here
