The United States is grappling with a mounting housing crisis as median three-bedroom rents surge beyond the reach of average local wages in 197 out of 338 counties, according to ATTOM. This alarming trend aligns with the broader economic challenges facing individuals and families as housing costs outpace income growth.
Both rents and real estate prices have experienced significant escalations, far outstripping the pace of wage and salary increases. The consequences are particularly felt by younger generations, who have been hopeful for a real estate market correction to ease the burden of soaring housing costs.
Adding to the financial strain, data from Bankrate reveals that 49% of credit card holders are carrying debt from month to month, marking an increase from 46% in the previous year. This uptick in credit card debt contributes to a worrisome financial landscape.
Bankruptcy filings are also on the rise, signaling increased financial distress among individuals and households. As the housing market faces challenges, other economic indicators paint a concerning picture. December home sales were reported to be 6.2% lower than the same month a year earlier, culminating in the worst annual performance since 1995, as highlighted by CNBC.
The New York Federal Reserve is sounding a cautionary note, indicating a 63% chance that the U.S. economy could enter a recession by the end of the year. These developments cast doubt on the much-discussed concept of a “soft landing,” raising concerns about the potential for a credit crisis and higher interest rates in the near future.
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Median three-bedroom rents are increasing more than average local wages in 197 of the 338 counties in the US, per ATTOM
— unusual_whales (@unusual_whales) January 29, 2024
Now, 49% of credit card holders carry debt from month to month, up from 46% last year, per Bankrate.
— unusual_whales (@unusual_whales) January 29, 2024
Here is something that will get people freaked out:
Bankruptcy filings are aggressively moving higher pic.twitter.com/cUjcns7E2n
— Game of Trades (@GameofTrades_) January 28, 2024
December home sales were 6.2% lower thanthe same month a year earlier, closing out the worst year since 1995, per CNBC.
— unusual_whales (@unusual_whales) January 29, 2024
The New York Fed is pricing in a 63% chance the economy could enter a recession by the end of the year, per BI.
— unusual_whales (@unusual_whales) January 29, 2024
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