The Federal Reserve‘s second annual Survey of Household Economics and Decisionmaking reveals households continue to feel a financial squeeze from the Great Recession. The survey results revealed that households struggled with:
- a persistent need for more employment opportunities, whether in new jobs or more hours;
- a general unpreparedness for financial emergencies; and
- an inability to save, especially for households earning $40,000 or less annually.
Most of these facts are no surprise to those who have been watching California’s recovery closely. Lack of sufficient wages leading to the inability to save is responsible for much of the recent decline in homeownership rates and the surge in popularity for rental units. In California, however, even rentals prove too expensive to allow most tenants to build savings.