by Jeroslyn JoVonn
November 20, 2024
Homeowners are taking drastic measures to keep up with mortgage payments, including skipping out on meals.
A new Redfin survey reveals the extreme measures some homeowners are taking to keep up with mortgage payments, including skipping meals.
The survey revealed that 74% of homeowners earning under $50,000 struggle to varying degrees with housing costs, and 25% have skipped meals to meet their monthly housing expenses, Fox Business reported. Skipping meals is one of the most frequently reported sacrifices among individuals in that income bracket.
Among respondents in this income bracket, 43% reported dining out less frequently, 36% said they were cutting back on vacations or forgoing them entirely, and approximately 25% admitted to borrowing money from friends or family to make ends meet.
The survey revealed that approximately 23% have resorted to selling personal belongings to cover housing payments, while just over 20% admitted to delaying or skipping medical treatments.
Meanwhile, the majority of consumers across all income groups have felt the strain of soaring rental and home-sale prices over the past five years. According to Redfin data, U.S. rental costs have primarily leveled off over the past year but remain 20% higher than pre-pandemic levels. Last month, Redfin found that the share of renter households paying less than $1,000 per month dropped to 32.1%, the lowest level ever recorded.
On the homeowner side, the cost of purchasing a home has soared, with median home prices increasing by over 40% since before the pandemic. This sharp increase in home prices and high borrowing costs has made homeownership unattainable for many, particularly those earning less than $50,000 annually.
In June, Redfin reported that nearly two-thirds of homes for sale had remained on the market for at least 30 days without receiving an offer, reflecting the impact of high housing costs.
“Overall, the market is fairly stagnant,” Shay Stein, a Redfin Premier agent in Las Vegas, said in the report.
“There are more listings hitting the market, but a lot of them aren’t in good condition, or they’re not in a desirable neighborhood — and sellers are pricing unrealistically high. A lot of sellers are willing to let their home sit on the market until they get the price they want, and a lot of buyers aren’t willing to pay sky-high prices when mortgage rates are still high. My advice to serious sellers is to price fairly and make cosmetic repairs before listing.”
In September, Redfin reported that homebuyers now need an income of at least $76,995 per year to afford a median-priced starter home, which is approximately $250,000. In October, home prices were up 5.2% year-over-year, with the median price reaching $435,051.
RELATED CONTENT: Despite Calls To Spare His Life, South Carolina Executes Richard Moore
