One in 4 middle-income new homeowners — twice as many as a decade before — are buying into cost-burdened situations.

One in 4 middle-income new homeowners — twice as many as a decade before — are buying into cost-burdened situations.

The share of middle-class Americans who are buying wallet-squeezing homes has more than doubled in the previous 10 years.

Almost 30% of middle-class homeowners bought homes with monthly payments costing more than 30% of their income in 2022, an NBC News analysis of Census Bureau data found. That’s more than twice the share from 2013, with experts warning it leaves many households with less money for groceries and emergencies and less able to get ahead in the future.

That “cost-burdened” benchmark — in which a household devotes over 30% of income to housing costs — is a widely used measure of affordability for both homeownership and renting. The Census Bureau measures housing costs against it, and the Department of Housing and Urban Development has used it for decades.

  • @BallsandBayonets
    8•2 months ago

    Where I am, one would need to be making $29.70/hr (working 40 hours a week) to afford to only be paying 30% of their income on housing, and there aren’t many actual slums left. State minimum wage is $14/hr. Federal is $7.25/hr. The cheapest bottle of alcohol and a thin rag costs $12.95, though you can save a quarter if you rip your shirt into strips instead of using rags.