Amid rising financial pressures, a recent LendingTree study reveals that over 18 million Americans are living in homes that strain their budgets, highlighting a growing crisis of being house poor in high-cost states like California, Hawaii, and New York.
- House Poor Americans:
- A recent study by LendingTree revealed that more than 18 million Americans are living in homes that stretch their budgets beyond what’s considered financially healthy. These homeowners are what the housing industry refers to as cost-burdened or house poor.
- The term “house poor” applies to homeowners who spend more than 30% of their monthly income on housing costs, including mortgage payments, utilities, and other related expenses.
- Interestingly, high-cost-of-living states like California, Hawaii, and New York have the largest share of house-poor residents, while states like West Virginia, Indiana, and Arkansas have the fewest1.
- Young Adults Living at Home:
- According to a Harris Poll conducted for Bloomberg, approximately 45% of people aged 18 to 29 are currently living at home with their families. This figure represents the highest percentage since the 1940s.
- Additionally, survey data from 2020 showed that the percentage of young adults aged 18-29 living with parents increased from 47% to 52% between February and May 2020
Disney-Going Parents and Debt:
- According to a survey conducted by LendingTree, approximately 45% of parents with young children who visit Disney theme parks have gone into debt to cover the costs of their trips.
- This finding highlights the financial strain that family vacations, especially those to popular destinations like Disney parks, can place on households.
- It’s essential for families to carefully budget and plan their trips to avoid accumulating debt while creating lasting memories for their children.
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