With the recent announcement of the lowest cost-of-living adjustment (COLA) statistic being the lowest it has ever been since the 2020 COVID19 pandemic, it is a clear sign that economic recovery efforts are progressing. Many Americans have been anticipating additional financial support through stimulus checks throughout the pandemic to keep up with rising costs of living such as New Jersey’s ANCHOR program.
Providing financial assistance to homeowners and renters through ANCHOR
New Jersey has some of the highest property taxes in the nation, ranking in at the most expensive state to pay property tax in in 2022 according to Tax Foundation. Because of the high property taxes, the The New Jersey ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) program was designed to provide direct financial assistance to homeowners and renters struggling with rising living costs.
Under ANCHOR, eligible residents can receive substantial relief—up to $1,750 for homeowners and $450 for renters. The ANCHOR initiative aims to alleviate the financial burden caused by increased property taxes and the rising cost of living which is especially relevant in New Jersey which known for its high expenses. ANCHOR is subject to specific income limits and other eligibility criteria in order to receive aid through the program.
Renters caught between a rock and a hard place
One criticisms of ANCHOR is it’s lack of sensitivity to the problem of renting. If you are a homeowner who earns up to $150,000 a year, you are eligible for a payment of $1,750. If you earn between $150,000 to $250,000 a year, you are eligible to receive $1,000. Renters on the other hand are paid significantly less. Renters who earn up to $150,000 per year are only eligible to receive a $450 payment.
Many people mistakenly believe that renting is always a cheaper alternative to home owning. This is most definitely not always the case, and in states like New Jersey, California, and New York rent costs are often significantly more than what it would cost per month if paying off a loan on a property you earn. The ANCHOR program, while intended to help renters and homeowners alike, fails to recognize that many renters need just as much financial assistance as home owners.
The rent crisis in the U.S. is effecting young people especially
Many young adult individuals and couples are forced into renting due to the limited of housing availability, but also because they cannot get approved for a loan due to not earning a high enough income. However, renters have argued that the rent they pay if often much higher than what they would be paying back each month if they had a mortgage. Rent prices are also subject to change drastically, leaving many people without a stable location to afford to live in.
Many low- and middle- income households spend a large majority of their income on housing. As a result, many are forced to make difficult choices between essential expenses like food and healthcare, leading to increased levels of housing insecurity and homelessness. The situation has sparked urgent calls for comprehensive policy solutions to address the systemic issues contributing to the housing crisis, including rent control measures, increased investment in affordable housing, and better support for vulnerable populations.
While the ANCHOR program provides significant economic relief to many households and is very much welcomed, it is also important to recognize that payments like these are only pacifying the larger issue of the housing and renting crisis in the U.S. There needs to be an increased recognizability to reforming housing policy and making sustainable and affordable living for all residents across the nation. Access to decent shelter is a human right, and people should not have to fear being stranded without a place to stay.
