Important Takeaways:
- More than a quarter of Americans have resorted to skipping meals to avoid paying inflated grocery store prices, according to a new survey.
- According to a study by Qualtrics on behalf of Intuit Credit Karma, 80% of Americans say they have felt a “notable increase” in grocery costs in recent years. More than a quarter of respondents said the increased cost has led them to occasionally skip meals, while about one-third said they spend more than 60% of their monthly income on mandatory expenses such as food, utilities and rent.
- “Food insecurity is a major issue in this country as millions of Americans don’t have enough food to eat or don’t have access to healthy food,” Courtney Alev, a consumer financial advocate at Credit Karma, said in a statement.
- Of the Americans surveyed in the Credit Karma poll, 44% reported feeling financially unstable. This feeling is strongest among households making less than $50,000.
- The rising cost of living is also a likely factor in the increasing number of Americans taking on debt (55%).
- A large majority of consumers (80%) said they felt the most notable increases in expenses were for groceries, followed by gasoline, utilities, housing and dining out.
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Important Takeaways:
- 99% of Americans will be financially worse-off than they were pre-pandemic by mid-2024, JPMorgan says
- The majority of Americans have burned through their excess savings piled up during the COVID-19 pandemic, and in the coming months, JPMorgan says it is likely that almost everyone will be worse off financially than they were in 2019.
- In a Thursday note, the bank’s top stock strategist Marko Kolanovic said 80% of consumers, a group that accounts for nearly two-thirds of consumption, has already depleted any savings cushion they may have built during lockdowns.
- “It is likely that only the top 1% of consumers by income will be better off than before the pandemic,” Kolanovic wrote, pointing to the growing signs of credit card and auto loan delinquencies, as well as Chapter 11 filings.
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Important Takeaways:
- US renters remain burdened as insurance pressures on landlords mount
- Moody’s Analytics found that in Q3, the U.S. rent-to-income ratio (RTI) declined slightly by 0.5% and ended at 30%, a level that is the threshold for being rent-burdened. Renters are considered “burdened” if their rent payments consume 30% or more of their gross, or pre-tax, income. This comes after last year marked the first time that the median renter household in the U.S. paid over 30% of their income on an average-priced apartment when the national RTI reached a high of 30.8%.
- “Rent continued to be burdensome for median income households. For moderate- to lower-income families, growing income inequality and the lack of inventory growth in affordable and Class B/C space, their already higher rent burden will be even more exacerbated.”
- Moody’s Analytics CRE expects the rent burden to trail the 30% rent-burdened threshold over the next year or so.”
- The most rent-burdened cities in the U.S. saw declines in rent burdens year-to-date, although they remain above the 30% threshold in Q3 2023. New York City’s RTI was the highest in the nation at 64.2%, followed by Miami at 42.2%, Fort Lauderdale, Florida, at 37%, Palm Beach, Florida, at 34.3% and Los Angeles at 34%.
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