Housing

Housing eats up more of Americans’ budgets than any other expense. The majority of American renters now spend in excess of 30 percent of their income on housing, the maximum of what is considered affordable. A quarter spend more than half. By comparison, in 2000, 38 percent of the population was spending more than 30 percent.

That’s in part because of the subprime mortgage crisis and subsequent recession in 2008, which disproportionately hurt low-income communities. Homelessness increased over that period, and the number of Americans who rent their homes rose sharply across all age groups.

Today, the housing market is recovering and rents are rising again. But median incomes have not kept up with these increasing costs, particularly in metropolitan areas.

Olivia and Jose Aguilar

Household: Jose, 63, and Olivia Aguilar, 66
Location: Modesto, Stanislaus County

One morning in late April, Jose and Olivia Aguilar sat in the kitchen of their niece’s one-bedroom apartment in Modesto, California. They had just finished a breakfast of chilaquiles with leftover corn chips and eggs.

The apartment was the Aguilars’ seventh home in six years — and they were preparing to move again. Before crashing with their niece, Jose, 63, and Olivia, 67, had spent five months at Olivia’s granddaughter’s house in San Jose, and the five years before that sharing apartments with other relatives. This spring, they signed a lease for their own apartment in Modesto.

“For the next month, we’re going to have to live like this,” Olivia said, crossing her arms. “Right now we’re stretching our money as much as we can.”

The Aguilars are retired and depend on Social Security income and Olivia's pension, nearly all of which has recently gone toward housing. One month’s check paid for the deposit on their new place; the next for a storage unit. In late April, they were preparing to rent a van and bring up from San Jose the few possessions they could afford to take with them.

Olivia and Jose haven’t always had to struggle like this.

Olivia, who was born in Texas to Mexican immigrants, met Jose, an immigrant from Mexico, while working at a flooring manufacturer, in 1983. Three months later, they married.

Olivia was promoted from the assembly line to a chief inspector position. Jose spent his career as a janitor. In 2003, using a $56,000 inheritance from Olivia’s father, the two bought a house in Modesto. “It said, ‘Buy me,’” Olivia recalled.

But when they signed the mortgage, they didn’t realize their monthly payments would more than double in five years. The payments started at around $1,000 per month, she said. Within a few years, the Aguilars were paying roughly $1,800 and, not long after, $2,250. That was more than the couple’s monthly income. In June 2008, the bank foreclosed on their home.

“The housing market crashed and we crashed with it,” Olivia said.

They found an apartment in Union City, 20 miles from San Jose and 72 miles from Modesto. Jose and Olivia stayed in Union City for five years, sharing that first two-bedroom apartment with her daughter and her two children. Then the five of them moved into a three-bedroom apartment, adding another granddaughter, her boyfriend and a great grandchild to their home. Their third Union City apartment housed 11 people in five bedrooms. Then, after Olivia and Jose retired last August, they moved into a relative's home in Mexico for a few months.

On a weekday in April, Olivia and Jose visited their new apartment to clean the ceiling fans. Jose dismantled and took down the blades, while Olivia scrubbed them with rags.

The only task left was to haul their belongings from San Jose. Because of the cost, they were preparing to leave behind most of their furniture. The move also meant leaving behind their many relatives who live in San Jose — the great-grandchildren, their grandchildren and children.

Olivia’s flip phone displayed a grainy image of her great-grandchildren as a background. She missed them every day.

Of the new home, Olivia said simply: “I have a place to live.”