Tag Archives: Housing

10.22.25
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And Now Utility Bills!

By: Russ Kamp, CEO, Ryan ALM, Inc.

Electric payment company Payless Power released a report showing how Americans are being forced to choose between keeping the lights on, buying groceries, or paying for medicine. They conducted a survey of 1,069 people, including nearly half of whom came from low-income households, and regrettably 39% said they’d fallen behind on electricity payments in the past year.

Incredibly, more than 30% received at least one shutoff notice, while 11% had their power cut off due to missed payments. “Beyond the financial stress, high electricity prices are creating real safety risks,” Payless Power said. “More than half of low-income households said they went without heat or air conditioning for several days in the past year because they couldn’t afford it.”

The impact of having one’s electricity shut off has led roughly 30% of the respondents to feel physically unsafe at home during extreme temperatures. Not unlike the challenging economic times found during the Great Depression, nearly one in four sent children or pets away from their home to escape dangerous indoor conditions.

More than half (52%) of low-income households cut back on groceries to pay utility bills, while 16% skipped medication or medical care. Another 19% reduced transportation or internet spending, and 5% missed rent or mortgage payments. As you can imagine, larger families are hit hardest, as households with five or more people were nearly twice as likely to fall behind as those homes with two or fewer individuals at home.

Rising utility costs come as households are already stretched thin by higher housing costs and food prices compounded by a deteriorating labor market. Research from Goldman Sachs shows consumers are absorbing >50% of the cost of President Trump’s widespread tariffs. In a Harris/Axios poll, 47% of Americans said groceries are more difficult to afford than they were in September 2024.

Lastly, as of Q2’25, Moody’s and the Federal Reserve estimate that the top 10% of income earners in the U.S. account for 49.2% of the consumption. This is the highest percentage on record dating back to when data collection began in 1989. A level of concentration such as this is NOT good for the long-term viability of the U.S. economy.

Now 51% of the Median Household Income
04.23.25
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Housing: A Major Impediment to Saving for Retirement

By: Russ Kamp, CEO, Ryan ALM, Inc.

The demise of defined benefit (DB) pensions is putting great financial pressure on individuals to save for retirement through a defined contribution (DC) program. I’ve often railed about asking untrained individuals to take on the responsibility to fund, manage, and then disburse a “benefit” through a DC plan, arguing that most Americans don’t have the necessary disposable income, investment acumen, or a crystal ball to help with longevity issues.

Many (most)Americans are financially strapped and there are many contributors to this crisis, including student loan debt, monthly childcare expenses, food, medical insurance, car/home insurance, and housing costs to name but a few. I could address each of these and the impact that they have on the average American worker, but let’s focus on housing today. The cost of buying and maintaining a residence is suffocating. Property taxes often add the equivalence of a monthly “mortgage” on top of one’s monthly mortgage, especially if you live in high tax states such as New Jersey.

Here are some startling facts when comparing the impact of housing costs on families from the 1950s to today’s circumstances. It wasn’t unusual to have only one member of a couple (mostly the male) working outside the home in the 1950s. That ability has nearly vanished today. Why? Well for one, the average home was <$7,400 in the early ’50s and the average family income was roughly $3,300. So, for slightly more than 2Xs one’s family income you could own your roughly 1,000 square foot home.

Today, the median home is priced at $431k according to Redfin, while the median household income is <$80k. Maryland leads that way at just over $94,000, while Mississippi trails all states at $44k. It now costs more than 5Xs one’s family income to purchase a home in the U.S. By the way, the “average” home in the ’50s would be worth about $98k in today’s $s so about 23% of what it actually costs to buy today. Oh, my! The housing market has dramatically outpaced inflation during the last 7 decades, and there doesn’t seem to be an end to the escalation despite the greater home prices and today’s interest rate environment.

Just the housing costs alone are a great burden of the American worker. Add to this expenditure all that was mentioned above and then some, and you shouldn’t be surprised that median 401(k) balances are as anemic as they are. Let’s work together to bring back traditional DB plans so that most Americans will have a decent opportunity to retire before their 80th birthday!