If one home-affordability projection is correct, San Antonio homeowners will be in for some sticker shock by the end of the year. According to a report released on August 12 by real estate platform Zillow, home affordability in San Antonio would continue to decline, with mortgages consuming a larger portion of homebuyers’ income. And it’s all occurring at a fast pace.
According to Zillow, the average San Antonio homebuyer should budget 21.8 percent of their income for mortgage payments in December, up from 19.5 percent in June. While this is undoubtedly terrible news for San Antonio homebuyers, it might be worse. Residents in nearby Austin are concerned that the region is becoming more California-ized than ever. Austin’s housing affordability will continue to decline, making it the country’s least affordable metro for home buyers outside of California.
Only eight major U.S. metros had housing affordability higher than Austin as of June. However, Zillow predicts that by December, Austin would have fallen behind Seattle, Miami, and New York City in terms of housing affordability. If that happens, San Francisco, San Jose, San Diego, Los Angeles, and Riverside-San Bernardino will be the five metro areas in California with the worst affordability.
According to Zillow, the average homebuyer in the Austin region should have budgeted 19.7% of their salary for mortgage payments in June 2020. After a year, the percentage had risen to 25.3 percent. As per Zillow, Austin homeowners should expect to spend 30.1 percent of their income on house payments in December, even if mortgage rates hold steady.
In San Francisco, the same mortgage-payment numbers are expected to rise from 39.3 percent to 43.1 percent between June and December, while in San Jose, the same numbers are expected to rise from 36.8 percent to 40.9 percent between June and December.
According to the Zillow report, the picture for mortgage affordability in Texas’ other major metro areas is significantly brighter:
- In Dallas-Fort Worth, the average homebuyer should budget 22.1 percent of their income for mortgage payments in December, up from 19.8 percent in June.
- In December, the average homebuyer in Houston should expect to spend 18.8% of their income on mortgage payments, up from 17.2% in June.
“Strong demand and rising prices for homes are overwhelming the ability of low mortgage rates to keep monthly payments down,” Nicole Bachaud, economic data analyst at Zillow. “As prices continue to outpace income gains, affordability constraints will start to slow home-price growth.”
A Simple Tip To Boost Social Security Benefits By $800
Inflation sure did inflict some heavy blows to benefits in Social Security, including the amount of coverage to its beneficiaries in the United States. Prices of commodities have surged significantly by six percent in the past year alone. Putting things into perspective, inflation stagnated to almost zero for the better part of the last ten years, and in less than a year, prices have skyrocketed in nearly each of the major categories. A good example is the grocery prices that went up by 12 percent in several categories.
COLA 2022’s 5.9% may not be enough for some
To ease things up, the cost-of-living adjustment (COLA) for 2022 will be up by 5.9 percent, which is the largest tweak in the last four decades. Albeit such an increase, some still need additional funds to make ends meet. That said, here are some tips to substantially boost one’s income.
All about timing
An essential factor in determining a person’s Social Security benefit is timing. That said, the timeliest one can get in filing for the program’s benefits is by the time that individual has reached the age of 62, with age 70 being the latest. Americans are well-aware, though, that there’s a catch to this. Early filing of it would only yield lesser benefits. However, waiting for the ripe age of 70 would result in them receiving the maximum benefits, GBR writes.
Further, delayed retirement credits are some sort of reward that Social Security provides its recipients with for putting off claiming an individual’s retirement benefit. These credits start to stack up the month a person reaches their retirement age of 66 years and four months for people born in 1956, as this slowly increases to 67 for folks born in 1960 and above.
Additionally, these credits accumulate through age 69, though this may seem to work in reverse if one decides to get the benefits earlier.
The Social Security Administration stated that if a worker starts getting benefits prior to his/her full retirement age, that worker is said to be getting a reduction in benefits. The program stated that a worker can opt to retire as early as 62, though doing such may ensue a benefit reduction to as much as 30 percent.
Easing Up Inflation Through SNAP, Social Security, And Wage Hikes
Americans are as of late utilizing all the financial help they can get, especially since it is expected that inflation in the United States will continue to surge in 2022. Luckily, some will be getting a much-needed oomph in their income to at least facilitate coping with skyrocketing prices of essential commodities and even health care.
One way of getting more money next year is through food stamps. This program decides the number of benefits of the Supplemental Nutrition Assistance Program (SNAP), according to GBR. Americans who are eligible for it received a hike back in October when the new fiscal year of the federal government kicked off. It was learned that the typical monthly benefit for the 2022 fiscal year surged to $251 for each individual from the usual $240 per person. The said growth can be pinpointed to the permanent update to the Department of Agriculture’s “Thrifty Food Plan.”
Another form is via wage hikes. Albeit the fact that the federal minimum wage may well seem to be wedged at $7.25 an hour for over ten years now, there are places in the U.S. that took it upon themselves and set their hikes in employees’ wages. This year alone, there’s a sum of 74 counties, cities, and states that increased their minimum wages, according to the National Employment Law Project. The project is said to be calculating the statistics for next year, though it is anticipated that the figures will remain the same.
A good example is the state of Arizona. The minimum wage on the part of the U.S. will be upped to $12.80 per hour from the current $12.15. The same thing goes with Colorado, where the minimum wage is set to increase to $12.56 an hour next year from $12.32.
As for the federal contractors, they too will be getting a raise as they will be increased to $15 per hour in 2022 after President Joe Biden signed a related executive order. This will fully affect whether new contracts are signed or specific actions like renewals or extensions.
Also, notable employers have either raised or will raise the minimum wages of their employees. There are even instances that these wage hikes have doubled workers’ pay.
Those who are receiving Social Security are set to receive their biggest cost-of-living adjustment (COLA) in 2022, as this has been deemed the highest in decades. This is when the monthly payments will increase by 5.9 percent to account for inflation. Further, next year’s average monthly Social Security benefit will be increased to $1,657 from the current $1,565 and $3,000 for couples.
$20 Minimum Wage For All Employees Announced By San Antonio Company
In a step that is potentially the first in the industry, a prominent San Antonio firm has announced that it will raise the minimum wage for its employees from $15 to $20.
Security Service Federal Credit Union (SSFCU) announced the hike on Thursday, stating that it will directly affect almost 400 staff, with the majority of them working as member contact centre agents.
“This move is about people, and how we enable our best and brightest talent to be successful at work and in life,” said president and CEO Jim Laffoon. “This action sends a message to our employees that we not only value them but that they are a key success factor in achieving the future we want for our company and for our members.”
SSFCU employs over 1,900 people and has locations in Texas, Colorado, and Utah.
According to SSFCU officials, the pay rise will take effect at the end of September and will apply to all new recruits going forward.
“Staying competitive with wages, a robust benefits package, and 401k plan, allows us to retain the best talent and provide the high level of service our members deserve,” said executive vice president and chief human resources officer Cindy Moran.
Headquartered in San Antonio, SSFCU has more than 803,000 members.
Personal Finance News9 months ago
Child Tax Credit 2021 Update: December Payment Deadline For $3,600 Check As Surprise Cash
Stimulus Checks8 months ago
Stimulus Plus-Up Payments Worth $1,400 Are Available Till 2021 – Check If You Are Eligible
Covid-199 months ago
US COVID-19 Deaths In 2021 Surpass Last Year’s Numbers
California News8 months ago
Stimulus Check: The Plus-Up From The IRS Will Be The Final One For 2021
Child Tax Credit7 months ago
2021 Taxes: IRS Reverts Tax Filing Deadline Back In April Despite Raging Pandemic
Personal Finance News8 months ago
2021 Child Tax Credit Payments Impact The Tax Returns Next Year – Check How
Social Security7 months ago
2022 Tax Season: No Tax Break For Millions Who Received Tax Relief in 2021
Us News7 months ago
Americans Will Receive Emergency Food Benefits This Week: Details Inside