Reporters discuss bombshell story on Better.com’s CEO

An exclusive interview with the Forbes reporters who recently wrote a bombshell article about Better.com CEO Vishal Garg’s controversial workplace culture.

Now is the time to double down on diversity and inclusion efforts

Quicken Loans Mortgage Services is proud to partner with a diverse set of brokers, which broadens the pool of potential clients they serve together.

How to Accelerate Closings in 2021

In this webinar, we’ll provide you with actionable insights to help you accelerate your closing process from point-of-sale through post-closing.

Why are sellers sitting on the housing market sidelines?

Why aren’t more homeowners selling in this hot housing market? According to new research from Zillow, a number of factors are at play.

Real Estate

What's keeping some people from buying a house? Child care is ridiculously expensive

Here's how it impacted homeowners and renters

Homebuyers are left with less money to buy or rent a home due to the rising cost of child care, a new insight from Freddie Mac said.

The real price of child care has increased by 49% over the last 25 years, yet the cost of housing has only increased 14% in 25 years.

“One of the major challenges, when it comes to affording a home, is the high cost of child care. Our analysis finds that those families paying for child care generally are left with less money for housing,” said Sam Khater, Freddie Mac’s chief economist. “Specifically, we find they, on average, pay about half of the median mortgage payment and nearly eighty percent of the median rent.”

On average, a family will spend $715 a month on child care, which rises to $758 when the main parent with child care responsibilities is employed. When families have younger children, the cost is at $948, a month.

That leaves much less money left over for housing expenses.

In 2011, the average care expenditure for families with children under 5-years-old was 10.5% of their average income.

Families that make less than $1,500 a month who have children under the age of 15 spent an average of 40% of their income on child care, Freddie Mac reported.

Meanwhile, families who make over $4,500 a month spent only 6.7% of their income on child care.

This factor also varies by state. In Mississippi, for example, 7.9% of a family’s income went to child care, whereas in Washington, D.C. it’s 19.3%.

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