Renters are struggling more than homeowners in America’s tough housing market

Housing Costs Continue to Burden US Households: Both Homeowners and Renters Feeling the Pinch

A recent report from Harvard University’s Joint Center for Housing Studies highlights the dire situation facing many American households, as housing costs continue to rise, putting a strain on both homeowners and renters. The report shows that nearly one in four households that own a home are now struggling with unaffordable housing, while rental affordability has reached an unprecedented low.

The pandemic-era rent surge has led to a record-high number of renters spending more than half of their household income on housing and utilities. As of 2022, 12.1 million renters, up 1.5 million from pre-pandemic levels, are vulnerable to becoming unhoused due to financial shocks. This situation is exacerbated by the persistent lack of homes available for sale, leading to bidding wars, and elevated mortgage rates that are keeping both sellers and buyers on the sidelines.

Lael Brainard, Director of the White House’s National Economic Council, stressed the need for Congress to take action to address this issue. She pointed out that passing a bill that recently passed the US House could provide tax credits for 200,000 additional affordable units.

The Biden administration has taken steps to address the housing market, including capping annual rent increases for low-income households and reducing Federal Housing Administration mortgage insurance premiums, which has saved nearly 700,000 homeowners around $900 annually.

However, the Harvard report emphasizes the need for continued support, including down payment assistance, access to low-interest mortgage products, and regulatory reforms to close racial gaps and make homeownership more accessible to households with modest incomes.

Meanwhile, Apple is facing a new challenge in China, where demand for iPhones has been lagging. The company plans to integrate ChatGPT, a popular AI tool, into Siri, but China has banned the technology, citing regulations on generative AI.

Background:

The US housing market continues to face significant challenges, with rising costs and a lack of affordable housing options. The recent Harvard report highlights the struggles of both homeowners and renters, with many households struggling to make ends meet.

Key Statistics:

What’s Next:

The Biden administration continues to work on addressing the housing market, with a focus on increasing affordable housing options and providing support for homeownership for households with modest incomes. Apple is facing new challenges in China, where demand for iPhones has been lagging due to the ban on ChatGPT.