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Understanding the financial drivers of housing insecurity
Our research clearly shows that SaverLife members face hurdles when it comes to affording and finding adequate housing.
The housing paradox
SaverLife’s housing research and member stories were generously supported and funded by Melville Charitable Trust. We also appreciate the additional philanthropic support we received from Deutsche Bank for our housing research efforts.
The rising cost of housing across the U.S. is straining the financial stability of individuals living on low-to-moderate incomes (LMI). Housing cost burden can cause a ripple effect on other aspects of their financial health, including how well they’re able to manage their daily expenses while also taking steps to achieve their longer-term financial goals.
Through our research, we learned that one-third of SaverLife members cut back on groceries or went without health care in order to make their housing payments. These trade-offs have the potential to significantly harm their quality of life and increase their risk for food insecurity and health problems.
In this brief, we explore the interplay between housing affordability and financial insecurity by examining the real-life experiences of SaverLife members. We delve into the specific challenges they face and highlight the proactive steps they’re taking to navigate these obstacles. In addition, we identify programs and resources created to empower them in their pursuit of stable and affordable housing, as well as how those programs can be improved and expanded to be more effective.
The housing paradox
Our research clearly shows that SaverLife members face hurdles when it comes to affording and finding adequate housing.
What we found: Key findings
More than a third (34%) of members had problems making at least one housing payment in the prior year, including 41% of renters and 24% of homeowners. However, a much greater number – 63% – made financial sacrifices, such as taking on gig work or spending less on groceries, in order to make housing payments.
Income and expense shocks are significant drivers of housing payment challenges. Among various income and expense shocks, income disruptions or unexpected expenses resulting from severe weather events or natural disasters emerged as the clearest risk factors, but costs associated with moving also contribute to housing payment challenges.
Limited savings are a major risk factor in making rent or mortgage payments. For both renters and homeowners, having $500 or more in short-term savings greatly lessens the risk for problems making housing payments.
Debt problems create challenges for both renters and homeowners. Homeowners with no reported debt problems had only a 5% chance of having problems with mortgage payments, yet this chance jumps to 34% with just one debt problem.
SaverLife members who identify as Black and members who are parents with children in the home are more likely to experience housing payment challenges. Half (50%) of members identifying as Black said they had problems paying rent compared to 36% of members with other racial or ethnic identities. Over half (56%) of members with children had problems paying rent compared to 24% of those without children and were more likely to face eviction.
Awareness and usage of assistance programs is low – over half of renters are unaware of housing counseling programs, and only 6% have received these services. Among homeowners, two-thirds are unaware of property tax assistance programs and 55% are unaware of home repair subsidies that may be available.
Member stories
As part of these research efforts, we connected with SaverLife Members from across the country to learn about their experiences navigating the financial burden of housing.
