Crypto: Low-income households buy houses with their earnings

Cryptocurrencies are transforming the lives of low-income households. A recent study from the US Treasury reveals a dramatic rise in mortgage lending thanks to crypto gains. A trend that brings hope, but also risks!

Crypto gains boost mortgage loans for low-income households

According to a study by the US Treasurylow-income households in areas with high exposure to cryptocurrencies saw their mortgage loans increase by 250% between 2020 and 2024. Concretely, the average mortgage balance increased from $172,000 to $443,000. The latter is driven by higher down payments made possible thanks to crypto earnings.

The researchers note that zip codes with more than 6% of households reporting crypto-related income are most affected. This phenomenon offers unprecedented opportunities for access to property for these households. However, it raises questions about their debt and economic vulnerability.

Another fact: An explosion of debts in areas exposed to cryptocurrencies

In addition to mortgage loans, low-income households in areas with high exposure to cryptocurrencies are also seeing a marked increase in their auto debt and other loans.

The study underlines in fact debt-to-income ratios exceeding recommended thresholds. Which could pose problems in the event of an economic slowdown or collapse of the cryptocurrency market.

Economists therefore issue an important warning: growing crypto debt could destabilize financial marketsespecially if these debts are concentrated in systemically important institutions.

Certainly, crypto gains allow many low-income households to open up to new opportunities. Their growing debt, however, requires increased monitoring. The fact is that a weakened economy or a falling crypto market could exacerbate the risks. The future will therefore depend on the stability of the markets and regulatory measures!

Ariel R.

My name is Ariela and I am 31 years old. I have been working in the field of web writing for 7 years now. I only discovered trading and cryptocurrency a few years ago. But it’s a universe that interests me a lot. And the topics covered within the platform allow me to learn more. A singer in my spare time, I also have a great passion for music and reading (and animals!)

DISCLAIMER

The comments and opinions expressed in this article are those of the author alone, and should not be considered investment advice. Do your own research before making any investment decisions.