Americans earning under $50,000 are facing a harsh reality as they struggle to keep up with rising housing costs. Many are making significant sacrifices just to afford their rent or mortgage payments. According to a recent report, 74% of Americans earning less than $50,000 per year regularly struggle to cover their housing costs. This is a stark reminder of the financial pressures that lower earners are under.
To make ends meet, 24% of Americans earning under $50,000 a year have skipped meals, while 23% have sold belongings. Even more concerning is that 21% have delayed or skipped medical treatments to free up money for housing. These sacrifices highlight the severe impact that high housing costs are having on people’s health and well-being.
The cost of shelter has risen significantly, with the Consumer Price Index reporting a 4.9% increase on a year-over-year basis in October 2024. Homeownership has become increasingly unaffordable since the pandemic, with the median U.S. home sale price reaching $420,400 in the third quarter of 2024, up from $329,000 in the first quarter of 2020. This surge in prices has been driven by a combination of low mortgage rates during the pandemic and a subsequent increase in buyer demand.
The housing market is also facing a supply-demand imbalance, with a 4.2-month supply of homes on the market in October 2024, which is below the six-month supply needed to meet buyer demand. This imbalance has led to higher prices and made it even more difficult for lower earners to afford housing.
In historical context, the current housing crisis is reminiscent of the Great Depression, when many Americans faced similar financial hardships. The sacrifices being made today, such as skipping meals and selling belongings, are alarming and indicate a deepening economic divide.
The implications of this housing crisis are far-reaching. Not only does it affect individuals’ health and well-being, but it also has broader economic consequences. A population struggling to afford basic necessities is less likely to contribute to economic growth and stability. This situation calls for urgent attention and action from policymakers to address the affordability of housing and support those most affected.
Sources:
https://finance.yahoo.com/news/americans-earning-under-50k-skipping-180900270.html
https://www.consumerpriceindex.gov/housing-costs
https://www.nationalassociationofrealtors.com/housing-supply-demand
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