Author Topic: Half of Americans canít afford their house  (Read 4517 times)

Threshkin

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Half of Americans canít afford their house
« on: June 03, 2014, 02:02:15 PM »
Over half of Americans (52%) have had to make at least one major sacrifice in order to cover their rent or mortgage over the last three years, according to the ďHow Housing Matters Survey,Ē which was commissioned by the nonprofit John D. and Catherine T. MacArthur Foundation and carried out by Hart Research Associates. These sacrifices include getting a second job, deferring saving for retirement, cutting back on health care, running up credit card debt, or even moving to a less safe neighborhood or one with worse schools.

http://www.marketwatch.com/story/over-50-of-americans-struggle-with-home-affordability-2014-06-03?dist=countdown

How about buying a less expensive house?  How about reducing expenses?

Come on people, get a clue!

Numbers Man

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Re: Half of Americans canít afford their house
« Reply #1 on: June 03, 2014, 02:08:45 PM »
I think there's something missing from this article. Lenders and landlords screen occupants for income relative to the housing costs. I think the main reason for people having a problem with the rent or mortgage is due to job loss.

dragoncar

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Re: Half of Americans canít afford their house
« Reply #2 on: June 03, 2014, 02:25:05 PM »
There's no way to distinguish making these sacrifices "for housing" or "for other stupid spending."  For example, if I blow my paycheck on hookers and drugs, come the end of the month I may need to get a second job to pay my rent.  What a sacrifice!  Housing too expensive!

Threshkin

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Re: Half of Americans canít afford their house
« Reply #3 on: June 03, 2014, 04:11:58 PM »
There's no way to distinguish making these sacrifices "for housing" or "for other stupid spending."  For example, if I blow my paycheck on hookers and drugs, come the end of the month I may need to get a second job to pay my rent.  What a sacrifice!  Housing too expensive!

Exactly my point.  People need to set their spending priorities.  Food, Clothing, Shelter in that order.  The first one is the most critical but not necessarily expensive, the second can be near zero with minimal effort, leaving plenty for housing.  Many many people take care of the first three and then put away 50% or more to retirement savings.

dragoncar

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Re: Half of Americans canít afford their house
« Reply #4 on: June 03, 2014, 04:16:27 PM »
There's no way to distinguish making these sacrifices "for housing" or "for other stupid spending."  For example, if I blow my paycheck on hookers and drugs, come the end of the month I may need to get a second job to pay my rent.  What a sacrifice!  Housing too expensive!

Exactly my point.  People need to set their spending priorities.  Food, Clothing, Shelter in that order.  The first one is the most critical but not necessarily expensive, the second can be near zero with minimal effort, leaving plenty for housing.  Many many people take care of the first three and then put away 50% or more to retirement savings.

Haha, yeah I was just agreeing with you

alm0stk00l

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Re: Half of Americans canít afford their house
« Reply #5 on: June 03, 2014, 04:44:17 PM »
Over half of Americans (52%) have had to make at least one major sacrifice in order to cover their rent or mortgage over the last three years, according to the ďHow Housing Matters Survey,Ē which was commissioned by the nonprofit John D. and Catherine T. MacArthur Foundation and carried out by Hart Research Associates. These sacrifices include getting a second job, deferring saving for retirement, cutting back on health care, running up credit card debt, or even moving to a less safe neighborhood or one with worse schools.

http://www.marketwatch.com/story/over-50-of-americans-struggle-with-home-affordability-2014-06-03?dist=countdown

How about buying a less expensive house?  How about reducing expenses?

Come on people, get a clue!

I would assume they moved to a less safe neighborhood with worse schools because it is a cheaper house and that cutting back on health care was a way to cut expenses. It seems they are following your advice.

snshijuptr

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Re: Half of Americans canít afford their house
« Reply #6 on: June 03, 2014, 04:48:28 PM »
It pays to read the actual article:

http://www.macfound.org/press/press-releases/housing-challenges-real-many-americans-finds-2014-how-housing-matters-survey/

"Majorities of Americans believe that in their community, it is challenging to find affordable quality housing Ė whether renting (58% very/somewhat challenging) or buying (59% very/somewhat challenging.) Respondents overwhelmingly agree that it is challenging for families that live at or below the poverty level to find affordable quality housing (72% think this is very challenging), but the concern goes well beyond those living in poverty."

Interestingly, the survey shows sensible ideas about the mortgage interest deduction:

"At the same time, Americans understand certain tradeoffs in federal support for housing: more favor (47%) rather than oppose (40%) the elimination of the mortgage interest deduction for second homes and homes valued over $500,000 and ďbelieve that the money saved should be used to fund federal government programs that increase access to low- and moderate-income housing.Ē

So really it just shows that people are feeling pinched by the over inflated housing prices, while still paying those prices. I think the last part of your initial quote is the most important: homeowners see "moving to a less safe neighborhood or one with worse schools" as a viable option.


Mr Mark

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Re: Half of Americans canít afford their house
« Reply #7 on: June 07, 2014, 08:39:13 AM »
USA has some of the best value for money real estate in the civilised world. If they think it's a struggle here, try buying a place in Perth Australia, or Vancouver, or the UK, or NZ... where housing is more, salaries lower, and 30 year fixed rate loans unheard of!