Housing Costs Are Forcing People to Cut Spending on Food and Health Care

A new study reveals that housing expenses are forcing millions of people worldwide to make difficult financial choices, sacrificing spending on essentials like food and healthcare. The research, based on the experiences of 30,758 individuals across 22 countries, shows that three-quarters of respondents reduced other expenses to cover housing costs, with 75% cutting back on at least one expense in the past year.

Among those surveyed, 33% decreased food spending, 32% used savings or emergency funds, and 13% delayed or skipped medical care. Nearly half of the respondents also noted that an unexpected problem could jeopardize their ability to stay in their homes, with this risk being even higher for people living in informal housing (68%) and lower-income households (89%).

The study highlights that housing concerns go beyond affordability, as 40% of respondents accept some level of housing-related risk due to limited safer options, rising to 61% among those in informal conditions. In Latin America and the Caribbean, 74% of respondents reported living in homes without guaranteed safety, and 18% said their homes don't protect against extreme weather such as heat, cold, or flooding.

In Mexico and Barbados, 31% and 23% of respondents respectively identified protection from extreme weather as a major housing priority. The findings suggest that housing challenges extend beyond financial strain, impacting people's plans for starting a family and their capacity to invest in safer, more resilient housing.