The
HIGH COST of HOUSING
Read the following article. Pay special attention to the words in bold.
Some people live paycheck to paycheck. They spend all their money from one paycheck and need to wait for their next paycheck to pay their bills. Who are these people? People with low incomes? No. They are often middle-class Americans, people with good salaries. Some of these people are “house rich but cash poor.” This means that they put all their savings into a house or condo1 and have nothing left for emergencies. About one-third of American households live this way. Financial planners2 tell homeowners to keep three to six months of expenses for emergencies, but many don’t follow this advice. Some Americans don’t want to own a house. They prefer to rent an apartment because they don’t want debt3. This is especially true of millennials, people born between 1980 and 2000. But renting is often very
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expensive. Some cities have very high rent. New York City, Boston, and San Francisco have some of the highest rents in the United States. Some single young adults prefer not to own and not to rent. They live with their parents. Fifteen percent of young American adults between the ages of 25 and 35 live with their parents. More men than women choose to live with their parents. Of course, when mom and dad pay all the bills and don’t charge them rent, it’s a very good way to save money on living expenses. condo: private housing usually in an apartment building financial planner: someone who helps people manage their money 3 debt: money owed to another 1 2
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