More Southwest Floridians are living "house poor"

The average cost of a Cape Coral home jumped from $367,000 in March 2020 to $482,000 this March, according to the Florida Gulf Coast Multiple Listing Service.

That’s leading renters and homeowners to take a less traditional route to housing.

FAVORITE STREAMING DEVICE,THANKS FOR WATCHING FOX 4 NEWSAT 10-30, I’M JANE MONREALALONGSIDE PATRICK NOLAN.TONIGHT’S SPECIAL REPORT...BREAKING THE BANK JUST FORDECENT HOUSING.SOME ARE SPENDING MORE THANTHREE TIMES WHAT THEY SHOULD ONRENT OR MORTGAGE.

AND THEBOOMING HOUSING MARKET INSOUTHWEST FLORIDA IS MAKINGTHINGS WORSE.

FOX 4’S RACHELLOYD shows you how.all12-1825-4558-1118-125304-310352-400KIARA BABB TAKES PRIDE IN BEINIGA PROVIDER FOR HER FOURCHILDRENSO THEY CAN FOCUS ONJUST BEINIG KIDS.When I was younger, we worked.Like - we knew we needed to helpout.

I didn’t want that for mykids.KEEPING A ROOF OVER THEIR HEADSWAS ALWAYS A PRIORITYBUT ITMEANT WORKING LONG HOURS JUST TOBARELY MAKE ENDS MEET.Having financial issues tire youout - mentally, emotionally,physically.I’ve gone through depressionbefore.

I’ve been evictedbefore.78 PERCENT OF AMERICAN WORKERSARE LIKE BABB.

LIVING PAYCHECKTO PAYCHECK, ACCORDING TO DATAFROM CAREER BUILDER.

BABB SAYSFOR MAJORITY OF HER ADULT LIFE,MOST OF HER MONEY WENT TOWARDSRENT, NOT INCLUDING OTHEREXPENSES.It was probably about 70 percentof my income.STANDUP: THAT’S THE OPPOSITE OFWHAT MOST FINANCIAL PLANNERSWOULD ADVISE.

BUT TO MEET THEIRSTANDARD IN THIS HOUSINGMARKETYOU’D HAVE TO WORK THREEMINIMUM WAGE JOBS LIKE THIS ONE.THAT’S FLIPPING A LOT OF PIZZA.BUT RATHER THAN SPENDING *cutsinto pizza* MORE THAN HALF YOUREARNINGS ON HOUSING(50% GRAPHIC), THEY SAY YOU SHOULD STILL TRYTO CUT THAT *cuts into pizza*INTO A SLICE(15% GRAPHIC).I would say 15 percent.

A lot ofpeople say 25, but with thismarket, and the way incomes arefluctuating, and everythingthat’s going on, I would say 15percent.FINANCIAL ADVISER VICTORIAGRAHAM SAYS THAT’S JUST R RENTOR MORTGAGE.That doesn’t take into accountyour taxes you have to pay.

Thefood you have to put on thetable.

If there’s any repairsthat have to be done.

Ifsomething happens to be done.

Ifany repairs that have on thetable.

If there’s food you haveto put on the table.

If there’sany repairs that have to bedone.

If something happens withthe children.

There’s just somany things to consider.BUT EVEN THE HIGHER END OFGRAHAM’S SUGGESTED GOAL25PERCENT OF INCOME ON HOUSING ISOUT OF REACH FOR MOST PEOPLELIVING IN LEE COUNTY ALONG WITHBABB.BETWEEN 2015 AND 2019, THEMEDIAN HOUSEHOLD INCOME IN LEECOUNTY WAS ABOUT 57 THOUSANDDOLLARS, ACCORDING TO THE U.S.CENSUS.

THE LATEST DATA FROM THEECONOMIC POLICY INSTITUTE SHOWSDURING THAT SAME TIME FRAME THEANNUAL COST OF LIVING FOR AFAMILY OF TWO ADULTS AND TWOCHILDREN CAME TO MORE THAN$70,000 A YEAR.

THAT MEANS MOSTARE COMING UP SHORT BY ABOUT 20THOUSAND DOLLARS OR GOINGWITHOUT CERTAIN EXPENSESSO, FOR MOST AMERICANS, GRAHAM’SGOAL ISN’T JUST OUT OF REACH.IT’S NEARLY IMPOSSIBLE.It is very difficult to be ableto spend that amount of moneyfrom your income and have decenthousing, and that’s not just inpurchasing.

That’s in rentals,also.THE AVERAGE COST OF A CAPE CORALHOME JUMPED FROM 367 THOUSANDDOLLARS IN MARCH 2020 TO 482THOUSAND DOLLARS THISMARCHLEADING RENTERS ANDHOMEOWNERS TO TAKE A LESSTRADITIONAL ROUTE TO HOUSING.NatBECKY LUCAS WORKS WITH THENONPROFIT HABITAT FOR HUMANITY,WHICH HELPS FAMILIES BUILD HOMESTHEY CAN AFFORD.

SHE SAYS SHE’SSEEN AN INCREASE IN APPLICANTSFOR HABITAT HOMES WITHIN THELAST YEAR.Families who are renting homesare now being displaced, becausethe owners of those homes arenow selling those to capitalizeon the high appraisal values inthe area.BABB WAS ONE OF THOSE RENTERS.THE OWNER OF THE HOME SHE WASRENTING GAVE HER AN ALTERNATIVE.EITHER BUY IT OR PAY A RENTINCREASE.Normally, my raise would equalthe amount that rent would goup.BUT BECAUSE OF THE PANDEMIC, SHEDIDN’T GET THAT PAY RAISE.FEELING AT THE END OF HERROPESHE ALSO TURNED TO HABITATFOR HUMANITY.

LUCAS SAYS THEIRPROGRAM IS DESIGNED TO BRINGFAMILIES CLOSER TO ACHIEVING AMORE SUSTAINABLE LIFE.The mortgage payments are basedon 30 percent of their income.So, they will always beaffordable.FINANCE PROFESSOR TOM SMYTHESEES A SILVER LINING COMING OUTOF THE PANDEMIC FOR OTHERFAMILIES LIKE BABB.One of the benefits of thpandemic is that we have seenpeople changing their spendinghabits.STATS FROM FEDERAL RESERVEECONOMIC DATA SHOWS MOSTAMERICANS MADE HISTORY WITHTHEIR SAVINGS THIS PAST YEAR.

TOPUT THAT IN CONTEXT, AMERICANSTYPICALLY SAVED AROUND 10PERCENT OF THEIR ANNUAL INCOMEDATING AS FAR BACK AS 1960.

THATDROPPED TO AS LOW AS TWO PERCENTIN JULY 2005.

BUT IT JUMPED TO33* PERCENT IN APRIL 2020, EARLYON IN THE PANDEMIC.

EVEN AT TBEGINNING OF THIS YEAR, WORKERSREPORTED SAVING 13 PERCENT OFTHEIR INCOME.The question is will it continuewhen we fully recover from thepandemic?SAVING SOUNDS LIKE THE BESTSOLUTION TO FINANCIALPROBLEMSBUT IT ISN’T THATSIMPLE FOR FAMILIES LIKE BABB.SMYTHE SAYS THAT’S WHERE SAFETYNETS LIKE HABITAT FOR HUMANITYCOMES INTO PLAY.LUCAS SAYS HABITAT FOR HUMANITYHAS BUILT 1,678 HOMES IN LEE ANDHENDRY COUNTIESBABB AND HERCHILDREN MOVED INTO THEIRHABITAT HOME A LITTLE MORE THANA MONTH AGO.It’s more than providingstability.

It’s more thproviding comfort.

Like, it’s alot of hope.IN CC RLF4.THAT FINANCE PROFESSOR ALSOSHARED A LOT OF FREE RESOURCESPEOPLE CAN US