Amid the high cost of housing in the U.S., many Americans are facing challenges in keeping a roof over their heads.
Recent surveys have indicated that about half of homeowners and renters have experienced periodic struggles this year when it comes to affording their mortgage payments or rent.
According to findings from Redfin, the current housing market prices have put a strain on families, leading some to prioritize housing costs over other essentials such as food and medical care, forcing them to make significant sacrifices.
Redfin's research, based on a survey of approximately 3,000 homeowners and renters conducted in February, sheds light on the financial difficulties many are facing in the housing sector.
In a separate survey conducted by Clever Real Estate in 2023, it was revealed that 62% of homeowners have at times struggled to make their mortgage payments on time, further highlighting the widespread financial challenges in the housing market.
February saw the national median mortgage payment soar to $2,184, a significant increase from $2,061 a year prior and $1,750 in February of 2022, as reported by the Mortgage Bankers Association (MBA). Median rents also experienced a rise, reaching $1,981 in February compared to $1,937 from a year ago and $1,684 in the same period in 2022, according to Rent.com data.
Despite the escalating housing costs, a majority of homeowners have managed to keep up with their payments. The MBA's most recent data indicates that only 3.88% of all outstanding loans are delinquent by 90 days or more, a lower figure compared to the historical average delinquency rate of 5.25% between 1979 and 2023.
While the percentage of homeowners falling behind on mortgage payments remains relatively low when considering all loans, the MBA highlighted in February that newly originated loans are slipping into delinquency at a faster rate. The association attributed this trend to various factors such as the resurgence of student loan payments, increased personal spending, rising balances on credit cards and other forms of consumer debt, and declining savings rates.
