Study: Renters More Financially Stressed Than HomeownersDaniel Dobbs2023-05-26T08:24:29-07:00
Almost half of all renters say they have trouble paying for basic needs, according to a recent report by Washington think tank “The Urban Institute”.
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The study – which is a deeper dive into the results of its 2017 Well-Being and Basic Needs Survey that polled 7,500 people – drilled down to better assess the divide between renters and owners.
It revealed that 46% of renters said they had trouble paying for basic needs, while just 36% of homeowners said the same. It also suggested that renters prioritize keeping a roof over their heads above putting food on the table.
Of the expenses were giving renters the most trouble, food was named the No. 1 source of insecurity at 30%, while making rent payments was problematic for 13%.
Renters were also less confident they could shoulder emergency expenses, with 28% reporting low confidence in their ability to come up with an extra $400 if needed.
“Our research suggests that families are forgoing other basic needs just to maintain a roof over their heads,” the report stated.
“Although some proposed policy solutions will increase funding for rental assistance programs & reduce barriers to housing construction, safety net programs for renters are in jeopardy, & supports for low-income homeowners are limited.”
The Institute said policies to help renters in financial straits are necessary to address the situation.
“Our research adds to growing evidence that resource-strapped families face impossible decisions and trade-offs when paying for housing and basic needs like food and medical care every month,” the report added.
“Weakening the housing safety net only increases material hardships they already experience.”
