Will increases in health insurance premiums threaten homebuying?

"Hale said the scale of the hit for families losing ACA subsidies is likely to be severe if the subsidies are discontinued. It's going to mean that healthcare takes a bigger chunk out of their monthly budget, and that budget shift has got to come from somewhere, she said. So, for people who are currently renting and maybe saving up to buy a home, that (saving) progress might feel like the most discretionary part of their budget and probably would be a target."

"A lot of the main culprits behind why somebody would enter into foreclosure would be that they would have a life event, like they got an illness or cancer, and they got hit with really big medical bills, she said. This was before we had the Affordable Care Act, so sometimes those health care bills would be so high that it would put them into foreclosure."

"President Donald Trump had been expected to roll out a plan to tackle rising health care costs potentially including an extension ACA subsidies. However, the White House has now paused the announcement amid congressional Republican pushback, several news outlets reported Monday. A Nov. 18 post on Truth Social from Trump read, THE ONLY HEALTHCARE I WILL SUPPORT OR APPROVE IS SENDING THE MONEY DIRECTLY BACK TO THE PEOPLE, but no further details on that strategy have been shared."

Loss of ACA subsidies would severely increase out-of-pocket healthcare costs for affected families. Higher healthcare spending would consume a larger share of monthly budgets and force households to reallocate funds from other goals. Renters saving to buy homes would likely reduce or halt savings, undermining homebuying chances for marginal buyers. Increased medical bills from illnesses could push homeowners toward mortgage delinquency and foreclosure, as occurred before the Affordable Care Act. The White House paused a planned announcement on addressing health costs amid Republican pushback. A presidential social media post said any supported healthcare measure would return money directly to people.

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