Tải bản đầy đủ - 0 (trang)
5 Poverty And Economic Insecurity

5 Poverty And Economic Insecurity

Tải bản đầy đủ - 0trang

Dynamics Of Economic Well-Being: Poverty, a study by the Census Bureau,

reported that between 2009 and 2012, 31.6% of the U.S. population experienced

poverty for at least two months.

Among Hispanics, 49.6% experienced poverty, the highest of all ethnic groups.

By age, the percentage was 40.6% among children, 31.0% among adults ages 18-to64, and 15.7% among the elderly. Among those without a high school diploma, 50.6%

experienced poverty. Among those with some college education, 22.9% experienced at

least two months of poverty.

The Census Bureau defines ‘near poverty’ as having a family income either

below the poverty level or within 100% to 125% of the poverty level. In 2012, 61 million

people, or 19.6% of the total U.S. population, were living in or near poverty. For a

family of four with two adults and two children, this is an income of $29,104 or less. For

someone who lives alone, it’s an income of $14,931 or less. As a point of reference, a

minimum-wage-earning, full-time worker has an annual income of $15,080, just above

the near-poverty level.

According to Living in Near Poverty in the United States, a report by the Census

Bureau, between 1966 and 2012, the percentage of Americans who live in or near

poverty has fallen slightly – from 21.0% to 19.7%. The percentage in poverty increased

from 14.7% to 15.0% during those years, while the percentage near poverty dropped

from 6.3% to 4.7%. The poor and near-poor population expanded by more than 20

million between 1966 and 2012.



2.6 Market Resources

Household Income Trends, Sentier Research. (www.sentierresearch.com)

Income and Poverty In The United States, Census Bureau.

(www.census.gov/hhes/www/income/income.html)

Institute for Research On Poverty, University of Wisconsin-Madison, 1180 Observatory

Drive, Madison, WI 53706. (608) 262-6358. (www.irp.wisc.edu)

Panel Study of Income Dynamics, University of Michigan.

(http://psidonline.isr.umich.edu/)

Survey of Consumer Finances, Federal Reserve.

(www.federalreserve.gov/econresdata/scf/scfindex.htm)



CONSUMER BEHAVIOR 2017-2018



• 35 •



3

CONSUMER DEBT



3.1 Household Debt

According to the Quarterly Report On Household Debt and Credit, by the

Federal Reserve Bank of New York (www.newyorkfed.org), total U.S. household debt

at year-end 2015 was $12.12 trillion, an increase from $12.07 trillion a year prior.

Household debt was distributed as follows:













Mortgages:

Student loans:

Motor vehicle loans:

Credit cards/revolving credit:

Other:



2015



2014



$8.25 trillion

$1.23 trillion

$1.06 trillion

$ 733 billion

$ 847 billion



$8.36 trillion

$1.20 trillion

$1.04 trillion

$ 731 billion

$ 739 billion



In 2015, average household debt by category was as follows (source: Federal

Reserve Bank of New York):

• Mortgages:

$168,614

• Student loans:

$ 48,172

• Auto loans:

$ 27,141

• Credit cards:

$ 15,762

• All types of debt:

$130,922

Based on analysis of millions of credit records over a five-year period, a 2015

report by the Urban Institute (www.urban.org) reported U.S. household debt as follows

(percentage of households):

• No debt:

29%

• Only credit card debt:

22%

• Only mortgage debt:

13%

• Only vehicle debt:

12%

• Vehicle and mortgage debt:

9%

• Only student loan debt:

4%

Debt profiles generally depend on lifestage. Mortgage debt, for example, peaks

at 41% among consumers ages 48-to-52. Student loans peak at 23% am ong those

ages 23-to-27.



CONSUMER BEHAVIOR 2017-2018



• 36 •



3.2 Mortgage Debt

Mortgage debt accounts for 70% of total consumer debt. Sixty-six percent (66%)

of adults have mortgages on their homes, according to The Harris Poll

(www.theharrispoll.com).

The Federal Reserve Bank of New York reported that mortgage originations in

Fourth Quarter 2015 were $437 billion. About 104,000 individuals had a new

foreclosure notation added to their credit reports during the quarter.

In Fourth Quarter 2015, 2.2% of mortgages were 90 days delinquent.

According to The Federal Home Loan Mortgage Corporation (FHLMC), known as

Freddie Mac (www.freddiemac.com), homeowners are shortening the terms of their

mortgages. Since 2011, over one-third of refinancers paid off a 30-year loan and

switched to a 20- or 15-year loan.



3.3 Credit Card Debt

According to the Federal Reserve Bank of New York, approximately 49% of

households have credit card debt. Among those with credit card debt, the average was

$15,762 per household at year-end 2015.

Credit card debt at year-end 2015 was $733 billion, an increase from $731 billion

a year prior.

Credit cards are the only type of debt for 22% of U.S. households, according to

the Urban Institute.

Many consumers have given up using credit cards entirely. According to the

Federal Reserve, 30% of families have no credit cards.



3.4 Student Loans

About two-thirds of bachelor’s degree recipients borrow money to attend college,

either from the government or private lenders, according to the U.S. Department of

Education (www.ed.gov).

Outstanding educational debt has been as follows (source: Federal Reserve):

• 2008:

$ 731 billion

• 2009:

$ 832 billion

• 2010:

$ 912 billion

• 2011:

$1.01 trillion

• 2012:

$1.13 trillion

• 2013:

$1.22 trillion

• 2014:

$1.20 trillion

• 2015:

$1.23 trillion

At year-end 2015, 11.5% of student loan balances were 90 or more days

delinquent.



CONSUMER BEHAVIOR 2017-2018



• 37 •



According to Pew Research Center (www.pewresearch.org), 19% of U.S.

households owe student debt, more than double the share two decades earlier and a

rise from the 15% that owed such debt in 2007, just prior to the onset of the Great

Recession. Forty percent (40%) of households headed by someone younger than age

35 owe such debt. Among households owing student debt, the average outstanding

balance is $26,682; 10% of student debtor households owe more than $61,894.

_________________________________________________________________



“While the overall level of student debt may not

measure up to that of mortgages, it is highly

concentrated among a small slice of people –

those in their 20s and 30s – who are the engines

of a great deal of economic activity. One of the

crucial reasons the housing market has not

expanded enough to support robust economic

growth is that young adults are not setting up

their own households at anywhere near the

historical norm. Might higher student loan debt

burdens be an important reason?”

The New York Times

_________________________________________________________________



An October 2015 Harris Poll found that 36% of U.S. adults are currently paying

or have paid student debt in the past, a f igure unchanged from 2013. Among these

debtors, 39% say they have put off savings toward retirement, 30% have delayed

buying or leasing a new car, and 30% have delayed buying a home.



3.5 Medical Debt

According to The Commonwealth Fund (www.commonwealthfund.org), 48 million

people are paying off medical debt; an additional 27 million people report problems

paying their medical bills.

FINRA Investor Education Foundation (www.usfinancialcapability.org) reports the

percentages of adults with unpaid medical debt as follows:

• Millennials:

31%

• Gen Xers:

31%

• Baby Boomers:

22%

• Seniors:

10%



CONSUMER BEHAVIOR 2017-2018



• 38 •



In 2015, 26% of adults ages 18-to-64 had problems paying medical bills,

according to the Kaiser Family Foundation (www.kff.org). Among those with and

without health insurance, these figures are 20% and 53%, respectively.

Hospitals write off about $25 billion, or 2.7% of revenue, as a result of consumer

bad debt, according to the American Hospital Association (www.aha.org).



3.6 Market Resources

Detailed Tables On Debt, Census Bureau.

(www.census.gov/people/wealth/data/debttables.html)

Quarterly Report On Household Debt and Credit, Federal Reserve Bank of New York

(www.newyorkfed.org/medialibrary/interactives/householdcredit/data/pdf/HHDC_2015Q4.pdf)

Survey of Consumer Finances, Federal Reserve.

(www.federalreserve.gov/econresdata/scf/scfindex.htm)



CONSUMER BEHAVIOR 2017-2018



• 39 •



4

HOUSEHOLDS & HOUSING



4.1 Households

The Current Population Survey, by the Census Bureau (www.census.gov),

estimated there were 124.6 million households in the U.S. at year-end 2015.

Distribution by race and ethnicity is as follows:

• Non-Hispanic white:

67.6%

• Black:

13.8%

• Hispanic:

13.0%

• Asian:

5.1%













Distribution by type of household is as follows:

Family households, married couple:

Non-family households (a person living alone,

unrelated people living together, or people

in group settings):

Family households, husband or wife only present:



48.3%



33.8%

17.9%



Household composition has undergone significant shifts in recent decades.

Distributions since 1970 have been as follows:















Married couples with children:

Married couples without children:

Other family households:

Men living alone:

Women living alone:

Other non-family households:



1970



1980



40.3%

30.3%

10.6%

5.6%

11.5%

1.7%



30.9%

29.9%

12.9%

8.6%

14.0%

3.6%



1990



2000



2010



26.3%

29.8%

14.8%

9.7%

14.9%

4.6%



24.1%

18.7%

16.0%

10.7%

14.8%

5.7%



20.9%

28.8%

17.4%

11.9%

14.8%

6.2%



According to the Current Population Survey, households grew an average of

about 500,000 per year from 2007 through 2014. This is less than half the annual pace

of 1.2 million averaged 2000 through 2007, and lower than that averaged in the 1990s,

when Generation X matured to become heads of households.

Between 2014 and 2015, the household count increased by 656,000. The

change in number of households by age of householder is as follows:

• Under age 25:

-282,000

• 25-to-34:

87,000

• 35-to-44:

-43,000

• 45-to-54:

-98,000



CONSUMER BEHAVIOR 2017-2018



• 40 •









55-to-64:

65 and older:



114,000

877,000



_________________________________________________________________



“The decline in households headed by people

ages 35-to-54 is due to the small Generation X

population moving into those age groups. The

increase in households headed by people aged

55 or older is due to the large Baby-Boom

generation in those age groups.”

Memo Demo, 10/17/15

_________________________________________________________________



Growth in the number of households headed by 25-to-34-year-olds had been

declining since the end of the Great Recession, although the trend reversed slightly in

2015. The annual change in the number of these households has been as follows:

• 2010-2011:

315,000

• 2011-2012:

274,000

• 2012-2013:

171,000

• 2013-2014:

-9,000

• 2014-2015:

87,000

The 25-to-34-year-old population is growing by more than half a million a year.

But burdened by student debt, challenges in finding well-paying jobs, and rising rents,

few in this age group can afford to live alone or head households.



4.2 Shared Households

The Census Bureau defines shared households as those with a household

member ages 18 or older who is not in school nor the head householder, spouse, or

cohabiting partner.

In 2014, there were 23.5 million shared households (19.1% of all households);

74 million adults (30.9% of all adults) lived in these households, according to the

Census Bureau. This is a sharp increase from 2007, when there were 19.7 million

shared households (17.0% of all households) housing 62 million adults (27.7% of all

adults). In 1980, 12.1% of households were shared households.

Among shared households, the majority are multigenerational households, with

adult children living with a parent or grandparent, or an elderly parent living with their

adult children. According to The Return of the Multi-Generational Family Household,

a report by the Social & Demographic Trends Project at Pew Research Center



CONSUMER BEHAVIOR 2017-2018



• 41 •



(www.pewsocialtrends.com), 16% of family households are multigenerational.

Young adults ages 25-to-34 are a major component of the growth in the sharedliving population, especially since 2010. In 2014, 10.7 million adults in this age group

were in a multigenerational household. This represents 25.2% of all 25-to-34 year olds.

For comparison, 18.7% and 11.0% of 25-to-34 year olds lived in a multigenerational

home in 2007 and 1980, respectively. In 2014 alone, 1.8 million young adults moved

into a parent’s home.

Stephanie Coontz, Ph.D., a family history professor at Evergreen State College,

points out that there are a host of factors prompting families to combine expenses.

Among them are higher housing costs and the struggling economy. Also, shared

households are common among the country’s growing number of immigrant families.

According to Amy Gover, a multigenerational issues expert at AARP

(www.aarp.org), the most common multigenerational household is one with a

grandparent as head of household with adult children that have moved in with

their children, an arrangement usually spurred by the needs of one or both to

combine resources and save money. The second most common arrangement is

a grandparent moving in with an adult child’s family, usually for caregiving reasons.

Roommates also account for an increasing number of shared households.

Census 2010 reported 6.2 million households with non-relatives, including unmarried

partners and roommates, an 8% increase from 2000.



4.3 Home Ownership vs. Renting

Annual Gallup Polls (www.gallup.com) have reported the percentages of adults

who own or rent their primary residence as follows:

Own

Rent

• 2008:

70%

26%

• 2001:

67%

29%

• 2009:

70%

26%

• 2002:

70%

28%

• 2010:

65%

30%

• 2003:

69%

27%

• 2011:

68%

28%

• 2004:

71%

26%

• 2012:

62%

34%

• 2005:

74%

24%

• 2013:

62%

34%

• 2006:

73%

22%

• 2014:

64%

32%

• 2007:

73%

22%

• 2015:

62%

35%

According to the Census Bureau, there were 74.41 million owner-occupied

housing units and 42.88 million renter-occupied housing units in 2015; the homeownership rate was 63.4%, a decline from 65.4% in 2012, and the all-time high of

69.0% in 2004.

Ownership rates by age in 2014 were as follows (percentage point change from

2004 in parenthesis):

• Under 25:

21.7% (-3.5%)

• 25-to-29:

32.7% (-7.5%)

• 30-to-34:

47.2% (-10.3%)

• 35-to-39:

56.0% (-10.2%)



CONSUMER BEHAVIOR 2017-2018



• 42 •













40-to-44:

45-to-54:

55-to-64:

65 and older:



63.2% (-8.7%)

70.7% (-6.5%)

76.3% (-5.4%)

79.9% (-1.2%)



Ownership rates by region were as follows (percentage point change from 2004

in parenthesis):

Ages 30-34













Northeast:

Midwest:

South:

West:



42.1% (-9.8%)

57.9% (-7.1%)

49.8% (-9.0%)

40.6% (-11.5%)



Ages 35-39



53.9% (-8.0%)

63.4% (-10.8%)

56.6% (-11.3%)

48.7% (-10.1%)



There were 18.5 million vacant housing units in 2015, or about 14% of the total.



4.4 U.S. Housing Inventory

American Community Survey, by the Census Bureau, reported median housing

values as follows:

• 2007:

$221,845

• 2011:

$182,705

• 2008:

$217,271

• 2012:

$177,247

• 2009:

$204,363

• 2013:

$176,721

• 2010:

$195,311

• 2014:

$181,200

_________________________________________________________________



“The median value of owned homes in the

United States increased in 2014 for the first time

since the Great Recession.”

Memo Demo, 12/16/15

_________________________________________________________________



4.5 New Homes And Multi-Family Units

The Census Bureau reports residential construction in 2015 as f ollows:

• Single-family homes completed:

648,000

• Multi-family units:

320,000

• Multi-family buildings:

14,000

The median size of a completed single-family house has been as follows:



CONSUMER BEHAVIOR 2017-2018



• 43 •











1980:

1990:

2000:



1,570 sq. ft.

1,890 sq. ft.

2,077 sq. ft.











2010:

2014:

2015:



2,255 sq. ft.

2,506 sq. ft.

2,467 sq. ft.



The median size of multifamily units built in 2015 for rent was 1,057 sq. ft., while

the median of those built for sale was 1,408 sq. ft.

Characteristics of new construction were as follows:

Single-Family Homes

• Four bedrooms or more:

282,000

• Two bedrooms or less:

66,000

Multi-Family Units

• In buildings with 50 units or more:

• Three or more bedrooms:

• Age-restricted:



146,000

35,000

3,000



Multi-Family Units

• Constructed using wood framing:

• One or two floors:



12,000

7,000











In 2015, 501,000 single-family homes sold. Characteristics were as follows:

453,000 were detached homes; 49,000 were attached homes

327,000 had a 2-car garage and 131,000 had a garage for 3 cars or more

200,000 had one story, 278,000 had two stories, and 24,000 had three or more



The median sales price of new single-family homes sold was $296,400 in 2015;

the average sales price was $360,600.



4.6 Housing Affordability

The traditional affordability standard suggests that housing costs should be no

more than 30% of household income. According to State of the Nation’s Housing 2016,

by the Joint Center for Housing Studies at Harvard University (JCHS,

www.jchs.harvard.edu), the share of cost-burdened households (i.e., households

exceeding the affordability standard) is at 35.3%, down from a record 37.2% in 2010.

A full 28% of households are paying more than half their incomes for housing.



4.7 Vacation Homes

According to data by the U.S. Census Bureau, there are 5.33 million vacation,

seasonal, or recreational homes in the United States. This represents 4.0% of the total

U.S. housing stock. The following states have the highest concentration of vacation

homes:



CONSUMER BEHAVIOR 2017-2018



• 44 •



Tài liệu bạn tìm kiếm đã sẵn sàng tải về

5 Poverty And Economic Insecurity

Tải bản đầy đủ ngay(0 tr)

×