Stretched Thin: Incomes Not Keeping Pace With Rising Housing Costs

by Shannon Moriarty · 2008-10-14 11:26:00 UTC
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[Put down that calculator, it's not your imagination!]

If you feel as though your housing costs are stretching you thin these days, you're not alone. A new study by the Center for Housing Policy released last week found that, in the past ten years, homeowners and renters alike have seen increases in all costs associated with housing - utilities, gas, property taxes, insurance, etc. The kicker? Income increases aren't even coming close to keeping up.

Here's a look at the increases in housing costs from 1996 to 2006:

  • Mortgage payments - 46%

  • Rent payments - 51%

  • Utilities - 43%

  • Fuel oil prices - 131%

  • Property taxes - 66%

  • Property insurance - 83%

All in all, housing costs have increased 65% in the past decade - that's $5,314. Phew!

This increase trumps all other major expenses, including transportation (33% increase), food (30% increase), and even healthcare (56%).

And now, incomes increases from 1996 to 2006:

  • Homeowners - 36%

  • Renters - 31%

So let's get this straight: the costs of living have risen exponentially during the past decade... and incomes aren't keeping up. Add to the equation unpredictable job markets, a personal crisis (such as illness), or home that was already a bit pricey for your budget, and it's no wonder 61% of homeless service providers have seen an increase in homelessness.

You can read the entire study here.

Shannon Moriarty has worked in various homeless shelters and service organizations around the country. She is a graduate student studying housing and urban policy at Tufts University.
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