The elevated cost of housing has created new considerations of homeownership by middle-income Americans.
According to a new survey published by Santander Holdings USA Inc., 81% of middle-income respondents said the high cost of housing is a major financial issue, with half of the respondents (51%) believing homeownership is not a requirement to be financially prosperous – in comparison, only 27% of respondents believed it was.
Among respondents who lived in rental housing, six in 10 believed having an affordable home – even if it was a rental – was more important to achieving financial prosperity than having equity in a home.
Nearly three-quarters of the middle-income respondents (72%) reported seeing prices rise in the second quarter of this year and four in five (78%) considered inflation to be a major concern. The vast majority of respondents (90%) said they made spending cuts in at least one area to cope with the current inflationary environment, with four in 10 reporting they took on a second job or side gig in the last 12 months to help make ends meet.
But despite these challenges, eight in 10 middle-income households (77%) said they were current on their bills and 72% believed they were on the right track toward financial prosperity.
“While current economic conditions remain challenging, American households are showing great resiliency by taking the necessary actions to navigate through inflationary pain points,” said Tim Wennes, CEO of Santander US, a subsidiary of Madrid-based Banco Santander, S.A. (NYSE: SAN).
The survey was conducted by Morning Consult on behalf of Santander US and polled 2,202 adults in May. The survey defined the “middle-income” range of roughly $50,000 to $148,000.
;
You’ll own nothing and will be happy programming is working on the weak, fearful masses.
I bought my home 12 yrs ago as a short sale. I now can sell my home for more than three times what I paid for it. I could NOT have saved over $300,000 from my income &/or investments over that same time period. NO WAY! My financial planner at the time I was buying my house told me I was making a mistake (taking $4,000 out of my investments). That $4,000 would never have made that kind of return over 12yrs. Buying my house was the best financial move I ever made!
In America, home ownership IS THE KEY for financial independence. Buying a home keeps a steady, level payment, while amortization pays down on the principal – even if the home didn’t appreciate a penny – you pay it off in 15 to 30 years. If you rent, your rental payments will be guaranteed to increase with the rate of inflation, over the same 15-30 years. In retirement having no house payment makes you able to live easier in your golden years.
Lmao!the young generation is depressed because they have been forced out of the market and cannot keep up financially with their college educated jobs… wake up.. they DO want their own place… the stats are inverted to fit the narrative of “ smart city living” it ain’t so smart after all now is it! Maybe the materialistic world we live in in keeping up with the Jones”s is backfiring on our govt narratives.
Get back to men being men and women being the beautiful resource of raising children and teaching basic skills to others/children/family:friends.. maybe there would be less divorce in society and more community… who’s home to share the fresh baked pie with anymore? Oh I guess going to a restaurant will solve that right? Who knows their neighbors anymore? Your children are raised by the system not by humans anymore… while moms are working what are they being taught in this govt academy.. do you know anymore?