U.S. experiencing middle-class decline

WALTHAM, Mass., Nov. 25 (UPI) -- Housing costs and lack of health insurance, coupled with household savings volatility, suggests many may not weather the economic storm, U.S. researchers say.

A report published by the policy center Demos and the Institute for Assets and Social Policy at Brandeis University finds 4 million American households lost economic security from 2000 to 2006. The majority of America's middle class households are either borderline or at high risk of falling out of the middle class altogether, the report said.

The researchers used government data and measures of financial security of the middle class by rating household stability across five core economic factors: assets, educational achievement, housing costs, budget and healthcare.

The median financial assets held by middle-class families declined by 22 percent. These figures do not include home equity and therefore do not reflect additional losses families may have experienced. The number of middle-class families in which at least one member lacks health insurance grew from 18 percent in 2000 to 25 percent in 2006.

Monthly housing expenses for the middle class rose by 9 percent. As a result, the percentage of middle-class families considered "housing burdened" rose from 31 percent in 2000 to 37 percent in 2006.

"Declines such as these in any one area are alarming," Tom Shapiro said in a statement. "Bad news across a range of areas supporting financial stability means the middle class is confronting its greatest challenge since the Great Depression."