WASHINGTON — Just before the first presidential debate of the 2024 election cycle, recent polls show that the economy is a concern that’s still top of mind for voters. For many families, the American dream of buying a house is becoming unaffordable.
A new report from Harvard University’s Joint Center for Housing Studies shows that almost a quarter of American families that own their homes are getting stretched thin by costs, and the same goes for renters after the pandemic-era surge in rent prices.
Channel 2 Washington Correspondent Nicole D’Antonio reviewed the report to break down the impact the costs of housing is having on families all across the United States.
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Between 2019 and 2022, more than 22 million renters spent more than 30% of their income on housing and utilities. The U.S. Department of Housing and Urban Development defines that level of spending as “cost-burdened,” meaning their housing and utilities are unaffordable, based on their income.
Experts say those high prices are also affecting how Americans spend their money.
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“There’s a lot of psychological research as opposed to economic research that things like mortgage, or rent, utilities, gasoline, things like that, things that are basic necessities. People don’t enjoy that spending. They think of it very much like a tax,” John Rosen, Adjunct Professor of Economics at the University of New Haven told Channel 2 Action News.
Adding to the economic strain, researchers say insurance premiums and property taxes are both on the rise.
The Harvard University report comes as the administration of President Joe Biden announced new steps to make housing more affordable for Americans.
Treasury Secretary Janet Yellen said part of the plan is to provide funding for affordable housing and to expand new construction to help address the lack of available supply.
“We face a very significant housing supply shortfall that has been building for a long time, and this supply crunch has led to an affordability crisis,” Yellen said.
Over the next three years, $100 million in funding will be put toward additional housing to increase the housing supply and help close the gap of affordable homes available.
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