The Sconi

With inflation hovering at near record levels and other economic conditions still worsening, most Americans now fear they will be unable to pay housing costs over the next year as the majority of them point to rent increases they have already been forced to deal with over the last 12 months.

According to a new Freddie Mac Federal Home Loan Mortgage Corporation poll, 62% of Americans now admit they are somewhat or very concerned about being able to afford their housing.

“The surge in rents that took place over the last 12 months has created even greater housing uncertainty for the most vulnerable renters,” head of Freddie Mac Multifamily Kevin Palmer said in a press release. “Our survey shows that the national housing affordability crisis is worsening, and that inflation is a key driver."

During the month of June, The Wall Street Journal (WSJ) reports the National Association of Realtors’ housing-affordability index highlights that housing across the country was more expensive than it has been for any month over the last three decades. The index, which factors in family incomes, mortgage rates and the sales price for current single-family homes, fell to 98.5 in June, representing the lowest level since June 1989, when the index was at 98.3.

Poll researchers also found that 69% of respondents fear rising housing costs in general and nearly six in 10 renters (58%) share they have faced some level of rent increases over the last year, resulting in 19% of those falling in that category adding they are now extremely likely to miss a payment, while 38% say they are somewhat likely.

"Consumer sentiment toward the housing market has worsened alongside affordability," The Journal added, noting that the Fannie Mae poll conducted in July also found that only 17% of Americans believe now is a good time to buy a home, compared to 28% a year ago. In addition, the number of people who think it's now a good time to sell a home fell to 67% from 75% a year earlier.

All across Wisconsin, costs are on the rise, with U.S.News.com reporting that, on average, the state saw a 17.07% rise in one-bedroom rent prices from March 2020 to June 2022 and as of June the state's average monthly rent cost for a one-bedroom unit stood at $864.

Meanwhile, over the last five months the country has seen existing-home sales decline. Over the same time period, interest rates spiraled upward as home prices steadily climbed, resulting in a greater number of buyers being priced out of the market and the sharpest erosion of affordability for the U.S. housing market in decades.

Earlier this month, the Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) data for the 12 months ending July 2022, with data highlighting an 8.5% all items annual increase, as increases in the index for food, shelter and electricity amounted to some of the largest contributors.