Where Does Your Paycheck Go?

According to the new Housing Landscape 2012 report from the Center for Housing Policy, nearly one in four working households spends more than 50 percent of its income on housing.

ONE in FOUR spends more than FIFTY PERCENT of its income on HOUSING.

The new report, based on the latest data from the American Community Survey (2010), took a look at the housing costs for working households – those earning up to 120 percent of their area median income and who worked at least 20 hours each week. The picture is not good.

The percent of severely burdened households increased significantly between 2008 and 2010, driven in large part by low-income renters. They saw the costs of renting increase by 4 percent during those two years, even while their incomes declined.  And with the economy still working with those that have done a short sale or foreclosure, the market for rentals has increased significantly – demand is quickly starting to outweigh supply.  (Think it is a good time to invest?  YOU BET!)
The underlying causes are lower employment, lower incomes and, for most, increased costs. Homeowners present some exceptions to this latter case, but only if they’ve taken advantage of the down market and been able to purchase at today’s lower prices.  (Think it’s a good time to buy a house?  YOU BET!)