Some Americans Say They Skipped Meals to Afford Housing Payment: Report

The high costs of housing are pushing many Americans to take drastic measures such as avoiding meals and medical treatments, according to a recent survey from real estate brokerage Redfin.
“That’s one of the most commonly cited sacrifices among people in that income bracket, topped only by eating at restaurants less often, taking no or fewer vacations, and borrowing money from family or friends.”
To meet the housing expenses, almost one-quarter of those who struggled to afford payments sold their belongings, while more than 20 percent avoided or delayed medical treatments, according to the survey.
Housing costs, for both owners and renters, have soared over the past five years, Redfin noted. While wages have also risen during this period, the increase has failed to keep up with the jump in housing expenses.
Most of the people making less than $50,000 annually are renters, the brokerage said. Renting costs are now roughly 20 percent higher than they were prior to the pandemic. As for people buying homes, expenses have increased even more—40 percent higher compared to before the pandemic.
The surge in housing costs is driven by high home prices and elevated mortgage rates, and people earning less than $50,000 a year are not in a financial position to purchase a residential property, the brokerage said. A household needs an annual income of at least $77,000 to afford a median-priced starter home in the country.
Last year, there were more than 21 million “cost-burdened” renter households, the U.S. Census Bureau said in September.
Nearly 35 percent of outstanding mortgages enjoyed a rate of 3 to 4 percent, almost 19 percent had rates of 4 to 5 percent, and nearly 10 percent of mortgages were 5 to 6 percent.
In total, more than 84 percent had mortgage rates less than 6 percent, Realtor data showed.
These owners could be less inclined to sell their properties as this could mean having to secure another mortgage for a new property at a higher rate. As a result, supply remains low, putting upward pressure on prices.
Only by cutting down budget deficits, boosting the labor force, and easing housing regulations can rates be quickly lowered, he said.
“Rising wages are outpacing home price increases. Despite some short-term swings, mortgage rates are set to stabilize below last year’s levels. More inventory is reaching the market and providing additional options for consumers.”