More Workers Feel Strain of Housing Costs

WASHINGTON, DC-A new study by the Center for Housing Policy finds that the number of families devoting half or more of their total income to housing–either in the form of rent or a mortgage payment–has grown significantly in the past 10 years. Called the Housing Landscape for America’s Working Families 2007, the study found that the number of renters paying more than half their income for housing grew 103% from one to 2.1 million between 1997 and 2005. The number of homeowners paying more than half their income for housing rose 75% from 1.4 million to 2.4 million during the same time period.

Maya Brennan, lead researcher for the study, tells GlobeSt.com that the center used data from the American Housing Survey, which is conducted by the US Housing and Urban Development Agency. Based on this data it found that almost 40 million US households met its definition of working families–households that work the equivalent of a full-time job and earn at least the annual minimum wage of $10,712, but no more than 120% of the median income in their area. “In some areas of the country, that figure can be quite high,” she says, “ranging from $50,000 to as much as $80,000.” The norm, though, was around $30,000, or less than 50% of the median income in the area. “Still, though, conceivably you could have two school teachers in a household or two accountants in some areas and they would not be able to comfortably afford rent or a mortgage.”