(FinancialHealth.net) – In 2010, 7.1 million American families earning $75,000 or more were renters; by 2018, that number had jumped to 10.2 million. The people we’d typically expect to be first-time homebuyers are paying for homes that will never be theirs. Or worse yet, they are packing up the family and moving back home.
Business Insider explains how it’s especially hard for younger Americans:
The middle class is having a hard time for multiple reasons. First, it’s hard to save money when middle-income earners are paying more than 30% of their wages in housing costs. In some cities, it’s even more. For example, the average rent for an apartment in San Francisco is $3,783 a month — that’s more than $45,300 annually.
Families with a down payment still have to find a home in their budget. That’s becoming increasingly difficult across the country. In some cities, the idea of buying a home while keeping food on the table and clothes on their back, not to mention any medical expenses, is just too much of a burden.
While many see grandparents or retired parents as the leaders of the family, that same family may need to relocate and turn the path through the woods into a trek down the expressway. Either that, or multiple families may need to start living together because they can’t afford to buy their own homes.
Are you ready for Grandma’s house to go from the best place to visit to a new permanent residence for your kids and their families?
~Here’s to Your Financial Health!
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