Middle-Class Homebuyers Face Rising Housing Costs, Straining Budgets

The percentage of middle-class Americans buying homes that stretch their budgets has surged over the past decade.Based on a recent Census Bureau data, nearly 30% of middle-class homeowners in 2022 spent more than 30% of their income on housing. This is more than double the rate from 2013, signaling a growing affordability crisis.

Experts caution that households paying such a large portion of their income for housing may struggle with everyday expenses like groceries and lack savings for emergencies, limiting their financial stability. This “cost-burdened” metric, a long-standing measure of housing affordability, underscores the challenges middle-class Americans face in today’s real estate market, leaving many financially squeezed and less able to build wealth.