WASHINGTON — Ahead of the first debate of the 2024 presidential election cycle, recent polls have found that the economy remains voters’ top concern, with the American dream of buying a home becoming out of reach for many families.
A new report from Harvard University’s Joint Center for Housing Studies finds that nearly a quarter of American households who own their homes are struggling with costs, and that soaring pandemic-era rent prices have left renters in the same situation.
By Nicole D’Antonio, Channel 2 Washington Correspondent We reviewed the report and analyzed the impact housing costs are having on families 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 this level of spending as “cost burdened,” meaning that their income means they cannot afford to pay their housing and utilities.
Experts say these rising prices are also affecting how Americans spend their money.
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“In contrast to economic studies on basic necessities like mortgages, rent, utilities, gas, there’s a lot of psychological research that shows people don’t enjoy these expenses and see them as taxes,” said John Rosen, an adjunct professor of economics at the University of New Haven. Channel 2 Action News.
The researchers say rising insurance costs and property taxes are adding to the financial burden.
The Harvard report comes as President Joe Biden’s administration announces new measures to make housing more affordable for Americans.
Treasury Secretary Janet Yellen said the plan would include funding affordable housing and expanding new construction to address supply shortages.
“We face a very serious housing shortage that has been building for a long time, and this shortage is contributing to a crisis of high home prices,” Yellen said.
Over the next three years, $100 million in funding will be dedicated to additional housing to increase housing supply and address the affordable housing shortage.
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