If you are looking for an upbeat assessment of consumer sentiment regarding housing affordability, a recent survey with the MacArthur Foundation is not the place to go. Its most recent survey of housing attitudes shows many Americans feel that home ownership is increasingly unattainable and close to a third of respondents don’t think the housing crisis has ended. The 2016 How Housing Matters Survey is the fourth annual national poll of housing attitudes commissioned by the MacArthur Foundation, this current year with additional support through the Kresge Foundation as well as the Melville Charitable Trust. Hart Research Associates interviewed 1,200 adults, via landlines and cell phones, between April 28 and May 10.
4 out of 5 Americans Say Affordability is an issue
Americans overwhelmingly consider stable, affordable housing as essential to economic security for families, tying with saving for retirement at 85 %, behind only having a good job at 90 %. Yet 81% of respondents believe that housing affordability is an issue and six in ten called it a significant problem. Sixty-eight percent believe that it is more challenging to secure affordable housing today than it was for previous generations, a belief held across all educational, income, regional, and demographic cohorts.
“Too many Americans today believe the dream of a decent, stable home, and the prospects for social mobility, are receding,” said MacArthur President Julia Stasch. “Having a decent, stable, affordable home is about more than shelter: It is at the core of strong, vibrant, and healthy families and communities. This survey demonstrates that the public wants action to address the nation’s real and pervasive housing affordability challenges.”
While 35 % of respondents told pollsters in 2015 that they thought the housing crisis was basically over, there was a six percentage point drop in those responses this year. In reality, 44 % believe the country still is in the midst of the crisis and 19 percent think the worst is yet to come. The proportion of Americans who believe the crisis has ended has been steadily rising to its 2015 peak, from 20% in 2013 to 25% in 2014. The recent drop prevails across most segments of the public and is especially pronounced among Hispanics and city dwellers with a 13 percent drop in each group and renters and those 65 and older whose positive responses were down 12 points.
Still, Americans are optimistic that the problems are solvable. Nearly two-thirds believe there are actually actions that can be taken to increase affordability with 76 percent believing it is at least fairly essential for their elected leaders in Washington to do so. The view that affordable housing really should be a priority among policymakers is strong throughout the political spectrum – from most Democrats (88% express it is very/fairly important for leaders to take action) to three-fourths of Independents (75%) to a solid majority of Republicans (62%). Both homeowners (71%) and renters (86%) agree as well. Yet 63% of adults say this issue has not yet received enough attention from the 2016 presidential candidates, including half of Republicans (49%), two-thirds of Independents (66%), and three-quarters of Democrats (74%).
Among possible solutions backed up by strong majorities were tax changes to help lower middle-income home buyers, expanding housing support for low-income families with children, and requiring local communities to ensure 20 % of housing is affordable to those earning less than $50,000 annually. At least three-quarters of respondents supported each of this changes.
A third of respondents said they do know somebody who has been evicted, foreclosed upon, or otherwise lost their housing within the last 5 years and over half indicated they have themselves sacrificed to pay their mortgage payments or rent during the last 3 years. This has including taking on additional work, ceasing to save for retirement, accumulating credit card debt, or cutting back on healthy food or healthcare. Thirty-one percent say they paid over half of their monthly income on rent or mortgage payments.
The survey finds that 16% of adults feel only somewhat stable and secure or unstable and insecure in their current housing situation – this represents in excess of 37 million Americans. One third of renters expressed such vulnerability and 42% of those who spend more than 30 % of their income on rent.
Despite the pessimism, the survey found the pendulum continues to swing back to the belief that owning a home is a superb long-term investment. That sentiment has risen 10 % since 2014 to 60 percent.
Geoffrey Garin, President of Hart Research Associates, said, “This year’s How Housing Matters survey reveals a surprising reversal of the trend in which Americans have been feeling more optimistic about the housing recovery, and concerns about housing affordability have remained remarkably durable. It’s understandable why a lot of Americans are still skeptical with regards to the housing recovery. Stable, affordable housing equates to feelings of security and having achieved a middle-class lifestyle, yet as Americans continue to make sacrifices to maintain their homes. Americans want their elected officials to focus more on the challenge of affordable housing, and they also think the problem hasn’t so far received the attention it deserves with the candidates.”
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