Cameron Toroni, a 24-year-old Uber driver in Chicago, wonders if he’ll ever be able to afford his parents and grandparents.
Older generations of his family own homes, he said, “but they bought them at a time when it was really affordable.”
Toroni completed a year of college, but dropped out when everything went online during the pandemic, and he’s not sure what he wants to do next. He believes that while driving full-time at odd hours for Uber, he is earning around minimum wage. Meanwhile, rent for a mid-range, very fancy apartment is $2,000 per month.
“A big question that I still don’t have the answer to is how (housing) became so expensive relative to the wages and income that we get from normal jobs,” Torroni said. “I feel like this is the biggest separation that I don’t even understand.”
Consumer confidence at an all-time low
Toroni is hardly alone. Rent is high – but mortgages, utility bills, property taxes and homeowner’s insurance are also very high. The housing affordability crisis, for many Americans, feels like a stranglehold.
A Gallup poll released on April 28 made headlines when it revealed that 55% of respondents said their financial situation was getting worse – an all-time high.
“Affordability remains the top financial challenge for American households, with concerns about various costs far outweighing all other financial concerns,” Gallup said in a report accompanying the release.
Among the things Americans struggle to afford, housing is tied for second place with energy. More than one-third of respondents told Gallup they are worried they won’t be able to pay their rent, mortgage or other housing costs.
Hidden costs of homeownership are rising
While shelter costs have long been recognized as a challenge, recent increases in supportive housing costs aren’t helping. By 2024, property taxes were set to increase 15% over the past five years, according to data from analytics provider Quotality.
Homeowners’ insurance costs have risen even more: They are set to increase by 70% between 2019 and 2025 as insurers struggle to price risks from the changing climate.
In a recent interview, housing counselor Caitlin Gravel told USA TODAY that she constantly fields calls from people — usually the elderly and those on fixed incomes — who can’t pay their housing costs.
There are some options for such homeowners, Gravelle said. During one recent week, she referred three people to the food pantry.
Housing costs aren’t suddenly rising, Gravelle said. So too are “food and transportation and everything to survive.” Meanwhile, he said, “I think our support networks are diminishing.”
no easy answers
This sentiment rings true for Toroni, who can’t understand why there is no rush to build housing that people can afford. “We’ve been technologically advanced for decades, right? Like with paper, we should be able to do more with less,” he said, “but it seems like nowadays we’re doing more with less.”
There come days when he has to make important decisions: “What should I buy today? Can I afford it?”