Economic Update: How credit unions can address affordability concerns

With affordability a top issue for consumers, are we in an “affordability crisis?” This month’s Economic Update video examines that question, with America’s Credit Unions Chief Economist Curt Long noting that lower affordability drives down loan demand and drives up credit risk.

Consumer sentiment is just above its all-time low, contrasting with strong GDP growth and relatively low unemployment. The gap between homeowners and renters may be a factor, as it’s been wider than the historical average since early 2023.  

“It’s important for credit unions to be mindful of this dynamic. Today’s renters are eager to own their first home, and to the extent credit unions can provide avenues for homeownership, they will be addressing a key source of economic anxiety for their members,” said Long. “But maybe the most important thing credit unions can do is the same thing they have been doing: offering the most affordable financial products on the market.”

The Data and Tools section of America’s Credit Unions’ website contains the monthly update, as well as dashboard analytics, credit union data, the current economic forecast, and more.