Since 2020, home prices have skyrocketed 42%, leaving many Americans struggling to buy homes. With interest rates and borrowing costs surging, buyers now need to earn 80% more to comfortably afford a home.
Back in 2020, a household earning $59,000 annually could afford a home priced at $240,815. Today, the same family needs to earn $106,000 for a median-priced home of $342,941. That’s a jump of $47,000 in required income, far exceeding the current average household income of $81,000. Meanwhile, median incomes have only risen 23% in four years, leaving homeownership out of reach for countless Americans.
Nearly 50% of Americans now live paycheck to paycheck. Bank of America reports 30% of households spend 90% or more of their income on necessities, while 26% spend 95% or more. This crisis is worsening, as more families struggle to cover basic living costs despite slight improvements from last year.
The 2022-2023 school year revealed a harrowing statistic: 1 in 8 public school children in New York City experienced homelessness. That’s over 146,000 kids, the highest ever recorded. This marks a 23% increase, fueled by an influx of migrant families and systemic housing instability.
Of these children, 41% lived in city shelters, 54% stayed with other families, and 5% were unsheltered, residing in cars or hotels. This grim reality has persisted for nine consecutive years, exposing the chronic failure to address housing instability in America’s largest city.
These crises paint a bleak picture of economic disparity and a failing safety net. From unaffordable housing to rising homelessness, America’s most vulnerable are being pushed further to the margins. Solutions can’t wait.
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