Stretched Thin: The Impact of Rising Housing Expenses on America's Owners and Renters

This report, funded by the Chicago Dwellings Association, explores the factors that increase the likelihood of foreclosure beyond the mortgage crisis.

The Foreclosure Crisis has brought housing to the top of the national agenda and raised questions about the widespread use of subprime and exotic mortgages to boost homeownership. Our research, however, suggests that mortgage payments are only one of several factors contributing to the challenge of rising housing expenses, and that this problem is adversely affecting virtually all segments of the housing market — homeowners and renters, new and longtime homeowners, and households with and without mortgages. Other components of housing costs — notably property taxes, property insurance, and rents — have actually increased faster than mortgage costs. And with rising fuel prices, utility costs appear well on their way to causing additional hardship.
This report draws on the Consumer Expenditure Survey and other sources to put housing expenses in the context of the typical household budget. The conclusions are sobering: many components of housing costs have increased substantially faster than incomes. These housing cost increases could compromise the ability of both homeowners and renters to stay in their homes. (Authors)
Publication Date: 
2008
Location: 
Washington, DC, USA