Cost of living exposure
Cost of living exposure focuses on housing costs relative to income. Rising rents, higher monthly housing costs, and elevated rent-to-income ratios can squeeze budgets even when incomes rise.
Why it matters
Higher exposure leaves less discretionary income and raises the risk of rent burden or displacement.
Common questions
- What is the median gross rent?
- How high are median monthly housing costs?
- How fast are rents growing year over year?
- What share of income goes to rent?
Example signals
- Median gross rent
- Median monthly housing costs
- Median home value
- Rent-to-income ratio
- Rent growth (YoY)
How this risk is used
This risk contributes to Financial Risk Score v1 as a location-level signal. Scores remain relative, explainable, and comparable across geographies.
FinancialRiskIQ does not provide personal financial advice or predictions.
Key sources
- U.S. Census Bureau ACS 5-year
FAQs
Does high cost of living always mean higher risk?
Not necessarily. The risk score weighs costs relative to incomes to capture pressure, not just price levels.
Why include rent growth?
Rapid rent increases can outpace wage growth and squeeze household budgets.
Why include home values if many people rent?
Home values reflect broader housing market costs that influence rents and affordability.
Related risks
View all risks →Household financial stress
Household financial stress reflects how close households are to the edge. It blends income, poverty exposure, housing cost burden, and safety-net reliance to show where families have less cushion for unexpected bills.
Debt and credit pressure
Debt and credit pressure tracks how leveraged households are and how often credit stress shows up. Higher subprime share, delinquency, and revolving utilization indicate tighter credit access and greater reliance on borrowing.
Legal and collection risk
Legal and collection risk uses civil court filings per capita and caseload trends to capture the legal environment. Higher civil filing rates can signal more collection activity and a more intense enforcement climate.