Baby boomers, who have benefited from rising home prices, now face a shortage of accessible and affordable homes for retirement. Many are stuck in homes that are difficult to maintain or navigate as they age, compounded by high healthcare costs and restrictive land-use laws. The lack of suitable housing is particularly challenging for lower-income and minority boomers, with many spending over 30% of their income on housing, leading to increased homelessness among older adults. The situation is exacerbated by climate-related risks and rising insurance costs.
A new report by Intuit Credit Karma reveals that 31% of Gen Z in the U.S. are living with their parents due to the unaffordability of rent or home ownership. With the national rent-to-income ratio at 30%, many renters across generations are struggling, but the issue is more pronounced among millennials and Gen Z. High rent and housing costs are delaying home ownership, with the typical age of first-time homeowners rising to 36. The trend of young adults living with family has increased significantly over the past two decades, exacerbated by the pandemic and subsequent inflation.
Due to increasing living expenses, stagnant wages, and high housing prices, many adult children are returning to live with their parents, causing some parents to dip into their retirement savings to support them. This financial trend highlights the challenges faced by families in managing long-term savings while addressing immediate economic pressures.
NatWest Chairman Howard Davies has faced criticism after claiming it's not "that difficult" to buy property in Britain, despite the current economic challenges including high interest rates, inflation, and a cost-of-living crisis. His comments have been met with backlash from social media and housing advocates, who argue that his perspective is out of touch with the realities faced by renters and potential first-time homebuyers. The average UK property price remains high, particularly in major cities like London, and while there is some anticipation of easing interest rates in 2024, the housing market outlook is still considered challenging.
The Nenookaasi homeless encampment in Minneapolis, which had become a temporary refuge for many individuals experiencing homelessness, has been relocated three blocks south. This move comes amidst ongoing concerns about the safety and sanitation of such encampments, as well as broader issues related to housing insecurity and the lack of affordable housing options. The relocation highlights the challenges cities face in addressing homelessness and the need for sustainable, long-term solutions.
UC Berkeley initiated a late-night operation to enclose People's Park with metal cargo containers, aiming to prepare for the construction of a student housing complex amidst legal disputes and protests. Law enforcement cleared protesters, some of whom had created makeshift structures and treehouses to resist the action. The university's plan includes housing for 1,100 students and 125 homeless individuals, while preserving 60% of the park as green space with historical exhibits. The operation, which involved arrests and the clearing of the park, was part of UC Berkeley's long-term goal to address student housing shortages, despite ongoing legal challenges and significant opposition from activists who see the park as a symbol of free speech and community.
Massachusetts has spent $42 million on emergency shelters in just two weeks of December, with a report revealing that nearly 1,400 families have sought shelter since the state reached its capacity of 7,500 in November. The report also indicates a significant increase in migrants with work permits and provides a detailed list of communities where families are currently housed in shelters, hotels, or motels, with Boston having the highest number at 1,309 families. An emergency overnight shelter was also opened in Cambridge to accommodate up to 70 families.
New York Governor Kathy Hochul and state lawmakers return to Albany to tackle issues such as the migrant crisis and housing shortage within a 61-day session. Hochul is set to deliver her State of the State address, focusing on health care costs and housing, while NYC Mayor Eric Adams faces budget challenges and seeks an extension of mayoral control of schools. The political landscape is complicated by tensions within the Democratic Party and the upcoming election year. The migrant crisis continues to strain resources, with Hochul looking to shift state spending from hotel stays to legal support and job training. Meanwhile, Adams is pushing for more housing action from the state and dealing with his own controversies, including a potential conflict of interest involving his Director of Asian Affairs.
In Portland, Maine, city crews began clearing a large homeless encampment along Commercial Street, which had been delayed by weather and holidays. The camp had about 71 tents, and the process is expected to take multiple days. Over 20 protesters deemed the sweep inhumane, using their cars to block the removal and facing police action as a result. City officials argue the sweeps are necessary due to concerns over drug use, crime, sanitation, and the health and safety of the homeless, especially in cold temperatures. Portland Mayor Mark Dion emphasized the availability of 86 beds at the Homeless Service Center and the city's efforts to lower barriers to shelter entry. However, some homeless individuals prefer the streets over shelters due to various personal reasons, including shelter rules and location.
New York's housing crisis is set to be a major focus in Albany's 2024 legislative session, with Governor Kathy Hochul and lawmakers aiming to address the issue after failing to reach a consensus in the previous year. The debate centers around finding a balance between increasing housing stock, tenant protections, and incentives for developers. A potential compromise could involve the "Good Cause" eviction protections in New York City and the revival of the 421-a tax credit for developers who include affordable units. With all state lawmakers facing re-election in November, the pressure is on to find solutions that address the growing demand for housing, rising rents, and the need for more affordable and supportive housing options.
In Portland, protesters, including advocates and faith leaders, formed a human chain to oppose the city's plan to clear a large homeless encampment at Harbor View Memorial Park. The city, which has been trying to dismantle the camp citing available shelter beds, faced delays and criticism from city councilors and the community, who argue that the sweeps are inhumane and counterproductive. Despite the city's efforts, some homeless individuals, like Paul Hooper, have expressed reluctance to move to the shelter, preferring to find another place instead.
The historic town of Lahaina in Maui, Hawaii, is facing a complex recovery after a devastating wildfire killed at least 100 people and destroyed over 2,000 buildings. While the state seeks the economic benefits of tourism, residents, many of whom are tourism workers, are struggling with the trauma and the lack of affordable housing. Protests have emerged demanding housing solutions, and the tension between the need for tourist dollars and the community's well-being is palpable. Some suggest "voluntourism" as a way to help, while others emphasize the importance of tourists being respectful and empathetic to the local trauma.
Maui, particularly the town of Lahaina, is grappling with the return of tourism after devastating wildfires in August killed at least 100 people and destroyed over 2,000 buildings. While the economic boost from tourism is needed, many locals are still dealing with the trauma and loss, finding it difficult to provide the expected hospitality. The situation is exacerbated by a housing crisis, with many residents unable to find affordable long-term housing and some protesting for change. The island's tourism industry is facing a downturn, with visitation down by about 20% from the previous year, as travelers cancel trips out of respect for the community's suffering.
