Key facts
- Housing costs are forcing households worldwide to make difficult trade-offs, impacting access to food, healthcare, and savings.
- A global survey by Habitat for Humanity International found 75% of respondents reduced expenses to cover housing.
- 33% of respondents spent less on food, 32% drew down savings, and 13% delayed medical care due to housing costs.
- 48% of global respondents fear an unexpected expense could threaten their housing stability.
- 56% of respondents globally believe their country's housing system is broken.
- The 21st Century ROAD to Housing Act aims to increase housing supply and affordability.
A new global research report from Habitat for Humanity International highlights the widespread impact of escalating housing costs, revealing that people worldwide are sacrificing essential needs to maintain shelter. The report, "Home at What Cost?", surveyed 30,000 individuals across 22 countries, including low-, medium-, and high-income nations.
The findings indicate that the full cost of housing extends beyond rent or mortgage payments, compelling individuals to cut back on food, health care, savings, and long-term financial planning. Notably, housing insecurity spans all income levels, affecting a significant portion of the population in both wealthy and lower-income countries.
In the United States, 42% of non-homeowners expressed that they do not anticipate ever owning a home. Habitat for Humanity aims to address this by utilizing the recently enacted 21st Century ROAD to Housing Act to make homeownership more accessible.
Globally, three in four respondents reported reducing at least one expense in the past year to afford housing. This burden is particularly acute for those already facing housing vulnerability, including individuals in informal housing arrangements (89%), lower-income groups (85%), and younger generations like Gen Z and Millennials (81%).
These sacrifices directly impact basic needs, with one-third of respondents (33%) spending less on food, 32% depleting savings, and 13% delaying or avoiding medical care. Despite these measures, nearly half of all respondents (48%) stated that an unexpected problem could jeopardize their housing stability. High housing costs are a significant stressor for 35% of respondents, a figure that rises to 39% among Gen Z and Millennials. The report also underscores the link between secure housing and mental well-being, with 89% of respondents globally agreeing that safe and comfortable housing contributes to mental health.
Overall, 56% of respondents believe the housing system in their country is inadequate. Habitat for Humanity CEO Jonathan Reckford noted the consistency of the human experience across different countries, stating that incomes have not kept pace with housing costs, leading to a similar affordability gap globally.
The housing pressures are also affecting family formation, with 56% of respondents, including 62% of Gen Z and Millennials, finding it difficult to consider starting a family due to housing costs. Reckford pointed out that in some cultures, housing is a prerequisite for marriage, and in the U.S., homeownership is typically linked to starting a family, suggesting long-term societal costs.
Concerns about future homeownership are particularly high in wealthier nations. In Canada, 56% of non-homeowners and in the U.S., 42%, do not expect to own a home. Reckford emphasized that homeownership, historically a path to financial stability and wealth creation, is becoming increasingly unattainable for many due to high rents making it difficult to save for a down payment.
The 21st Century ROAD to Housing Act, passed in July, aims to boost housing supply and affordability. Key provisions include reforms to the HOME Investment Partnerships Program, making it easier for communities to access funds for homeownership programs. The legislation expands income eligibility for the HOME program to 100% of area median income (AMI) from 80%, and increases the maximum median purchase price allowed from 95% to 110% of the area's median. Additionally, the act streamlines regulatory requirements, such as exempting certain small developments from environmental reviews.