02/24/2023
FORBES REPORTS: Deterioration in Household Finances Dooming Housing sales
Economic stresses are keeping many Americans particularly younger ones from considering the purchase of a home.
Anecdotal and statistical evidence suggests many Americans – especially younger adults – are increasingly confronting too much month at the end of their money. While inflation sends prices on almost everything higher, wage increases stubbornly fail to keep up. Higher rent charges, rising supermarket bills and the increasing credit card debt being hoisted by many folks leave people consumed with the task of simply getting by. That relegates the notion of purchasing a home to an afterthought.
These are among findings of the Economic Stress Index (ESI) from LegalShield, an online legal service delivering affordable legal coverage for small businesses and individuals. Its mission is to ensure each individual has equal access to justice. Toward that end, the company regularly synthesizes the data it generates into its LegalShield ESI. Comprised of a quintet of sub-indices that reflect demand for legal services, ESI reveals the ongoing financial obstacles Americans confront every day. Surging prices and stagnant wage growth are forcing many into the market for second jobs and side hustles that can enable them to make ends meet. Consumers’ anguish over their finances manifests in growing requests for consumer financial related aid. “We believe this deterioration in the household financial condition is currently [impacting], and will continue to impact, housing sales and the housing market overall, says Matt Layton, senior vice president, Analytics & Business Insights for Legalshield.
The LegalShield’s Housing Sales Index, released in January, depicts an eroding housing market based on the fact consumers feel squeezed between higher interest rates and lower purchasing power. The result: Postponement of home purchases.
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