Living in major cities in America is becoming increasingly expensive, especially when it comes to housing costs. Even high-income families like the Petersons face challenges in owning a home due to rising real estate prices.
The Burden of Housing Costs
The Peterson family’s 2-bedroom, 100m² apartment in Campbell, Northern California, is becoming increasingly cramped as their two young children accumulate more toys. Jenn Peterson (42), a chiropractor, and her husband Steve (39), a dentist, earn approximately $270,000 per year but still cannot afford to buy a home because of the soaring property prices.
Steve washes dishes while his wife plays with their daughter Carolynn in the living room of their rented apartment.
According to the Federal Reserve Bank of Atlanta, a family in San Jose with an average income of $156,700 would need to spend up to 80% of their income to purchase an average-priced home of $1.54 million. This figure far exceeds the personal finance recommendation of not exceeding 30% of income for housing.
Challenges in Home Ownership
Homeownership is becoming an elusive dream for many modern Americans. A report from the National Association of Realtors shows that the average age of first-time homebuyers in 2024 is 38 years old, up by three years compared to 2023. The primary reasons are the lack of housing supply and high mortgage interest rates.
Domonic Purviance, a housing researcher at the Federal Reserve Bank of Atlanta, notes that wage growth has not kept pace with rising house prices and interest rates. This forces many people to abandon their plans to buy a home.
Changing Trends in Home Ownership Beliefs
Brian McCabe, a sociology professor at Georgetown University, states that homeownership remains an important goal for many Americans. However, younger generations tend to marry later, have children later, and prioritize work flexibility. These factors are changing the traditional “American Dream” associated with homeownership.
The Peterson family’s apartment is getting smaller due to increased usage needs.
Jenn Peterson shares that if they were to try buying a home, her family would have to sacrifice things like traveling with their children or participating in extracurricular activities. Currently, they choose to rent an apartment for $3,600 per month and accept this reality.
Support Programs for First-Time Home Buyers
Some cities in America are implementing support programs for first-time home buyers. Julieta Lopez (63), who lives in Boston, is a prime example. After decades of longing to own a home, she succeeded with help from nonprofit organizations and local government.
Ms. Lopez is proud to own her first home after years of hard work.
Boston has invested over $24 million into support programs, helping nearly 700 residents achieve homeownership. Ms. Lopez expresses gratitude to the city for creating opportunities for hardworking individuals like herself.
Conclusion
The dream of homeownership in America is becoming increasingly difficult, even for high-income families. To address this issue, collaboration between the government, support organizations, and communities is needed to alleviate financial burdens on citizens. If you’re seeking housing solutions, consider support programs or options that fit your financial capabilities.
Source: dantri.com.vn
