Some Americans Say They Skipped Meals to Afford Housing Payment: Report

A home stands 'For Sale' in a Brooklyn neighborhood with a limited supply of single-family homes in New York City, on March 31, 2021. Spencer Platt/Getty Images

The high costs of housing are pushing many Americans to take drastic measures such as avoiding meals and medical treatments, according to a recent survey from real estate brokerage Redfin.

“Nearly three-quarters (74 percent) of U.S. residents who earn less than $50,000 per year, sometimes regularly or greatly struggle to afford their regular mortgage or rent payments,” a Nov. 18 statement from the company reads. “Of those people, nearly one-quarter (24 percent) report they have skipped meals to afford their monthly housing costs.

“That’s one of the most commonly cited sacrifices among people in that income bracket, topped only by eating at restaurants less often, taking no or fewer vacations, and borrowing money from family or friends.”

To meet the housing expenses, almost one-quarter of those who struggled to afford payments sold their belongings, while more than 20 percent avoided or delayed medical treatments, according to the survey.

Housing costs, for both owners and renters, have soared over the past five years, Redfin noted. While wages have also risen during this period, the increase has failed to keep up with the jump in housing expenses.

Most of the people making less than $50,000 annually are renters, the brokerage said. Renting costs are now roughly 20 percent higher than they were prior to the pandemic. As for people buying homes, expenses have increased even more—40 percent higher compared to before the pandemic.

The surge in housing costs is driven by high home prices and elevated mortgage rates, and people earning less than $50,000 a year are not in a financial position to purchase a residential property, the brokerage said. A household needs an annual income of at least $77,000 to afford a median-priced starter home in the country.

According to the U.S. Department of Housing and Urban Development, households spending more than 30 percent of their incomes on rent, mortgage, and other housing costs are classified as “cost-burdened.” If spending exceeds 50 percent, it’s severely cost-burdened.

Last year, there were more than 21 million “cost-burdened” renter households, the U.S. Census Bureau said in September.

With regard to homeowners, 38 percent of a typical family’s income was spent on making mortgage payments on a median-priced, new, single-family home in the first quarter of 2024, according to the National Association of Home Builders.

Housing Shortage

A report from the National Association of Realtors (NAR) found that the United States was facing a housing shortage of 5.5 million units. The biggest gap was found to be in the middle-income price range.

The elevated mortgage rates are contributing to the low supply in the market. According to real estate listings website Realtor, almost 22 percent of outstanding mortgages in the second quarter had an interest rate below 3 percent.

Nearly 35 percent of outstanding mortgages enjoyed a rate of 3 to 4 percent, almost 19 percent had rates of 4 to 5 percent, and nearly 10 percent of mortgages were 5 to 6 percent.

In total, more than 84 percent had mortgage rates less than 6 percent, Realtor data showed.

These owners could be less inclined to sell their properties as this could mean having to secure another mortgage for a new property at a higher rate. As a result, supply remains low, putting upward pressure on prices.

During a recent event in Boston, NAR chief economist Lawrence Yun pointed out that the future housing market trajectory will be decided by the direction taken by mortgage rates.

Only by cutting down budget deficits, boosting the labor force, and easing housing regulations can rates be quickly lowered, he said.

As to the current situation, Yun points out that while housing affordability remains a challenge, the worst “appears to be over.”

“Rising wages are outpacing home price increases. Despite some short-term swings, mortgage rates are set to stabilize below last year’s levels. More inventory is reaching the market and providing additional options for consumers.”

Correction: A previous version of this article’s headline misstated the volume of survey respondents who said they skipped meals. The Epoch Times regrets the error.