Affordable Housing, Community Development, Homelessness, Reports and Publications

Savings Provide Security from Housing Hardships

Urban Institute

A new study - Thriving Residents, Thriving Cities: Family Financial Security Matters for Cities – found that low-income families with as little as $250 of nonretirement savings are more likely to avoid evictions and pay their housing as well as their utility bills on time than families without any savings. The results also revealed that low-income families with savings of at least $2,000 are better equipped to avoid evictions and late payments than middle-income families without any savings.

Cities where residents are unable to save are less financially stable. When residents are unable to afford the cost of housing it can create a ripple effect of foreclosed homes, residential turnover, and decreased property values. When residents are unable to pay their utility bills it reduces revenues accrued for the city and costs additional money to shut the services off.

The authors recommend that local government officials invest in workforce training programs to help residents find jobs and financial capacity programs that educate residents on how to budget their money after they find employment.

Click here to view the full report. 



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