Many Americans Feel Financially Insecure

Renters are more financially stressed than homeowners, finds a new study by the nonpartisan think tank Urban Institute. The main driver cited is rental price growth outpacing renters' earnings growth.

Between 1960 and 2016, the median rent has grown by more than 60 percent, while renters' median income has grown by five percent, accounting for inflation, according to The Joint Center for Housing Studies of Harvard University. About 50 percent of renter respondents in the Urban Institute's study say they had a material hardship in the past year, versus roughly 33 percent of homeowners. More than 25 percent of renters in the U.S. were not certain they could cover a $400 emergency expense, compared to 18 percent of homeowners, CNBC reports.

To be sure, buying a house has also become harder for many Americans — to do so now costs four times the median household income. The homeownership rate fell to 63 percent in 2016 – the lowest rate in half a century "Still, renters seem to be worse off," said Corianne Scally, a senior research associate at the Urban Institute and a co-author of the study. While renters are worse off, Scally said, it's clear that many homeowners are also struggling with their bills. "It seems that some of them are having to make trade-offs in just meeting their basic needs," she said.

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