According to a study conducted by online real estate brokerage firm Redfin, almost 50% of homeowners and renters in the United States are facing difficulties due to the soaring costs of houses, rents, and mortgages. The report has unearthed that a large number of Americans are making sacrifices to afford housing costs.
Over a third of the survey participants (34.5%) reported that they have cut back on vacations to cover housing bills. Around 22% have skipped meals, 20.7% have worked extra hours, and 20.6% have sold their personal items. Other sacrifices include borrowing money from family or friends (17.9%), withdrawing from their retirement savings (17.6%), or foregoing or postponing medical care (15.6%).
Chen Zhao, the lead for Economics Research at Redfin, expressed that the burden of housing costs has reached such a point that some families cannot afford basic needs like food and medical care, compelling them to make considerable sacrifices, work additional hours, or borrow money.
The report pointed out that due to the surge in house prices and borrowing rates, mortgage payments are almost at their highest ever. Redfin noted that the average household income is approximately $30,000 less than what would be needed to afford a median-priced home.
However, Zhao believes that homebuyers could get a break in June if the Federal Reserve slashes interest rates, which would reduce the cost of securing a mortgage.