Categories
- All about Real Estate (229)
- Belmont Schools (7)
- Belmont's Best Deals (15)
- Best Peninsula Deals (12)
- Chamber News (3)
- Fixing up your Home (5)
- Frequently UNASKED Questions (9)
- Local Politics-What you need to know (14)
- Local Real Estate Market Reports (136)
- Magnificent Homes (5)
- Neighborhood Associations (6)
- Our Restaurant Reviews (6)
- Our Unpredictable Weather (11)
- Podcasts (11)
- Streets Around Us (6)
- The Lounge–Rants, Commentary & More (67)
- Uncategorized (37)
- Week in Review (17)
- What's up in Belmont? (54)
-
Shift in Housing Market Scares Young Buyers AwayJune 14th, 2022
-
Bay Area Housing Market on Precipice of Unpredictable ChangeApril 27th, 2022
-
How to Stop Agents from Behaving Badly at Your ExpenseMarch 8th, 2022
-
Fed Interest Rate Hikes and Your MortgageMarch 3rd, 2022
-
A LOOK AT 2021 HOUSING AND WHAT LIES AHEAD IN 2022January 31st, 2022
-
Belmont Adds to BottleneckApril 1st, 2019
-
Farm House Restaurant Soon to Open in Belmont!June 25th, 2017
-
Belmont Tries to Paint the Town RedJune 24th, 2016
-
Painful Housing Stall Hits Belmont SellersMay 17th, 2016
-
Shift in Housing Market Scares Young Buyers AwayJune 14th, 2022
- No comments have been published yet.
The Dual Income Trap
Elizabeth Warren, A Harvard Financial Law Professor writes in a very revealing article titled “The Middle Class on the Precipice†wherein she examines the dilemma now facing dual income families as spouses no longer have the added ability to enter the work force if even to temporarily buoy a family’s income.
Ms. Warren’s assertions can be seen as they apply to this year’s increase in foreclosures. In the 1970’s many households were single breadwinner families who purchased their home based upon a single income. This of course meant that if the sole money earner lost their job the other could fill the income void with temporary employment. Now that families are reliant on dual incomes, and qualify for their home loan based on two incomes, a loss of either income can be catastrophic if sufficient reserves do not exists.
Where will the next infusion of income growth come from? It seems highly unlikely that another source of income as significant as when dual incomes materialized will could arise in the future; leading one to speculate that the rapid increase in home values as experienced in the last 30 years is unlikely to continue at the same pace.
Share This Story, Choose Your Platform!
Related Posts
Shift in Housing Market Scares Young Buyers Away
Bay Area Housing Market on Precipice of Unpredictable Change
How to Stop Agents from Behaving Badly at Your Expense
Fed Interest Rate Hikes and Your Mortgage
A LOOK AT 2021 HOUSING AND WHAT LIES AHEAD IN 2022