Credit card delinquency rates have been broadly rising since Q2 2021.
The following figure shows the percentage of U.S. credit card debt in delinquency.
This variable grew in every region we examined for the last three to seven quarters.
For each region, the percentage of debt in delinquency has increased at least 32.2% in relative terms since its last trough. The richest 10% of ZIP codes have experienced the greatest proportional increase; their delinquency rate climbed from 4.8% in the second quarter of 2022 to 7.4% in the first quarter of 2024, or 54% in relative terms.
For the poorest 10% of ZIP codes, the delinquency rate increased from 14.9% in the third quarter of 2022 to 21% in the first quarter of 2024, or 41% in relative terms.
www.stlouisfed.org/on-the-economy/2024/may/broad-continuing-rise-us-credit-card-debt-delinquency
The state considers people in the Bay Area to be low income if they make below 104k a year.
Considering how state and federal income taxes are as high as 40%, and how the average rent is 36k a year, you don’t have a lot of disposable income at 100k.
A lot of people here don’t know how much crises like inflation and housing are in big cities. A mortgage on a median home in San Francisco (typically hovers around 1.5 million), at 20% down and 30 years, costs 8k a month before you factor in property taxes, home insurance, HOA, etc. And this is San Francisco; 1.5m doesn’t get you a lot of square footage.
I’d say in an urban area, you need at least 300k a year as an individual or a family to afford what was once a middle class lifestyle. Homeownership is just that out of reach for people.
h/t TyreeThaGod