It is time to discuss the condition of the cost of living in America. Over the span of just a few years, the American consumer’s cost of living has skyrocketed to insane heights.
Tell me more.
American workers put 40+ hours of work on the time-clock each week and their wages are still not keeping up. Rent growth has climbed by 3.6% in some regions and working wages are far behind at only 2.7%. Consumers are starting to get creative in order to combat these deficits.
How does the cost of living get so high?
The cost of living is based on the health of the housing and rental market. In many urban areas, the housing market has become strained due to the influx of new residents and the undersupply of leasing options and real estate.
How bad is it really?
The cost of living in urban areas is predicted to get even worse. In just one year, some cities require at least an $18,000 raise in salary in order to live comfortably. Unless you’re in line for a huge promotion at work, that number is just unrealistic.
What can a regular American worker do to combat this trend?
- Consider the Suburbs
Many Americans are opting for the suburbs in order to receive more square footage at a lower price.
- Avoid Relocation Hot Spots
Large urban destinations like Seattle, Austin, and Denver have become popular landing spots for millennials and land developers are fighting hard to keep up.
- Work Remote
Some Americans are opting for remote positions in order to save time and money on their morning commute from the suburbs since large urban areas tend to demand these deductions from monthly wages.
- Acquire Marketable and Transferrable Skills
The rise in the American cost of living is a doozy, but pair that with student loan debt and you’ve got the perfect storm. Instead of choosing a dream school, logical students are starting to focus on earning a degree that is more likely to pay off financially in the long run.
Is there any good news?
Eagle Home Mortgage offers many loan options for first-time homebuyers and consumers buried under student loan debt. Several of these programs require as little as 3% down making the possibility of homeownership attainable. Eagle makes sure all homebuyers have access to mortgage education resources through easy-to-use mortgage calculators and a learning center.
A homebuyer should be a success story, not a statistic.