THE ISSUE

Housing affordability and stability are foundational elements of financial security that millions of US households lack, often forcing lower income families to make painful tradeoffs between housing and other basic needs.

THE ISSUE

Our interest in this topic stems from our work on income volatility. During our 18-month cycle with income volatility, we learned that individuals and families use an ad hoc patchwork of strategies to manage dips in income and spikes in expenses, including a heavy reliance on borrowing. Households rely on credit to get by, often because savings are insufficient or have been depleted. For low-income families, the combination of income and expense volatility and limited access to credit can create serious challenges to their ability to make ends meet without becoming mired in expensive debt, creating a new burden that stretches their budgets even thinner.

THE ISSUE

A growing body of research shows that month-to-month income fluctuates wildly for low-and moderate-income Americans. This unpredictable income significantly impacts the financial lives of these individuals making it hard for them to meet monthly expenses, save, pay down debt, qualify for a loan, or handle a major unexpected expense.