Housing Costs Are Forcing People to Cut Spending on Food and Healthcare

Three-quarters of people surveyed said paying for their home forced them to cut spending elsewhere, according to a new global study based on the experiences of 30,758 individuals across 22 countries. Housing costs have forced many to reduce expenses they had set aside for emergencies or to take on additional work to remain in their dwellings. Seventy-five percent of respondents admitted they reduced at least one expense during the past year to cover housing costs.

The pressure is greatest for those with fewer housing alternatives. Among people living in informal housing, the share of respondents who cut expenses to cover housing rose to 89%, compared to 75% overall. Lower-income households also faced greater financial strain, with 84% reducing an expense to manage housing costs.

The study found that unexpected problems or setbacks could jeopardize people's ability to stay in their homes. Forty-eight percent of respondents said an unforeseen issue could risk their housing stability, rising to 68% among those living in informal housing. People in informal housing also accepted a higher level of housing-related risk, with 61% accepting some level of risk compared to 40% globally.

Housing concerns are widespread in Latin America and the Caribbean, where 74% of respondents said many people live in unsafe homes. Protection from extreme weather was a major concern in the region, with 18% of Latin American and Caribbean respondents saying their homes do not adequately protect against conditions like heat, cold, or flooding.

In Mexico and Barbados, 31% of respondents identified protection from extreme weather as a major housing priority, while 23% in Trinidad and Tobago said they had postponed or avoided weather-related improvements due to housing costs.

These findings suggest that housing concerns in the region go beyond affordability to include safety and protection from environmental conditions. Housing costs are also impacting future plans, with 56% of respondents saying housing costs make it difficult to start a family, rising to 62% among younger generations. Among parents surveyed, 58% feared housing costs were limiting their children's opportunities.