How Americans Are Dealing With High Housing Costs
There’s rarely been a more challenging time to be a homeowner or become one due to the high housing costs that you have to cover.
While there are signs that the red-hot American housing market is cooling down a notch, according to a recent survey more than half of all Americans say the lack of affordable housing is a major issue in their community.
In the same survey, 70% of young adults in America say they are having a more difficult time affording a home than their parents' generation. Inflation, the impact of the COVID-19 pandemic, supply chain issues, and political unrest seems to be among the many factors in high housing costs. So, what can you do? Below are just a few of the ways Americans use to cope with high housing costs.
Here's How To Deal With High Housing Costs
1. Define Your Financial Boundaries
Figuring out how much of a home you can afford is just part of the battle against high housing costs. Before making offers on a home, make some responsible financial decisions. Experts recommend going with a conventional loan that offers a 15-year fixed rate, which is usually the quickest mortgage to pay off.
Homeowners should have their eye on a monthly mortgage rate that does not exceed 25% of a household’s take-home pay.
2. Refinance Your Mortgage
With mortgage rates still low, refinancing your mortgage may be a great way to reduce high housing costs while keeping your home. You’ll end up paying less in interest because you’re lowering your mortgage’s term, a smart way to save cash especially if you plan on staying in your home for a long period to get the most out of the savings.
3. Do It Yourself
Even if you don’t consider yourself handy, there are ways to approach home maintenance that does not require a hefty contractor bill. Basic home repair isn’t tough to master, even if you don’t know the difference between a flat head and a Phillips screwdriver — search online, check out a repair book or watch a video. However, if the job seems dangerous (such as electrical work) it’s wiser to just pay up.
4. Enter A Different Market
Sure, it isn’t an option for everyone to pick and choose what housing market they are in. But if you have flexibility, consider moving to an area where the median home price won’t leave you struggling. For example, median home prices in cities such as Cleveland are 1/15th (!) the amount in places such as San Diego, Seattle, New York, and San Francisco.
Many Americans are even considering moving to other countries where the visa process is quick, the cost of living is low and housing affordability isn’t an issue.
Many high housing costs depend on your square footage or upkeep. Larger homes mean high property taxes and higher utility bills. Depending on where you live, one solution may be downsizing to a smaller house or even an apartment, townhouse, or condominium.
A word of warning: Downsizing doesn’t always mean high housing costs don’t stick around. Rental rates have gone through the roof recently as well, and some townhouses and condos could come with expensive community fees.
6. Rent Out Your Home Or Available Rooms
It’s probably not feasible to rent out your home full time but joining Airbnb and other house-share companies could drastically ease your financial burden. Whether you live in a city or small town (especially those by the mountains or beaches), you could easily cover your mortgage by renting out your home now and then.
And if you’re up for a roommate (or two) and have the extra space, your high housing costs can be drastically lowered by splitting rent and household utilities.
7. Consider A Title Loan At Home
Paying for a financial emergency such as an unexpected hospital visit, last-minute travel or car repairs can make your high housing costs even worth it. And yes, home repairs also fall under the category of financial emergency.
A car title loan at home may help ease the financial burden of your high housing costs. It uses your vehicle’s title as collateral in exchange for a loan. You may qualify for a title loan of up to $15,000 in 30 minutes or less through one of At Home Title Loans’ certified lenders.
The first stop is our home page. Simply fill out the short title loan inquiry form, and a loan representative will review the required items to qualify and guide you through the rest of the quick process.
Once you qualify, you can get the cash you need either the same day or the very next business day. A representative can even meet you at the location of your choice, including your home.
Get Started Today
Times are tough and high housing costs can seem insurmountable. Easy online title loans are an option for relief. Start online, give us a call, or visit us today to get back on your best financial feet.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.