Consumer News: More renters are giving up on homeownership

The measure requires a single price for all consumers

By Mark Huffman of ConsumerAffairs

• New Jersey lawmakers have approved the Fair Price Protection Act, making the state the second in the nation to ban surveillance pricing at grocery stores.

• The bill would prohibit retailers and grocery delivery platforms from using consumers' personal data to charge different shoppers different prices for the same food items.

• Supporters call the measure a consumer protection against AI-driven price discrimination, while critics warn it could complicate loyalty programs and personalized discounts.

New Jersey is on the verge of becoming the second state in the nation to outlaw "surveillance pricing," a controversial practice in which retailers use consumers' personal data to determine individualized prices for groceries.

The New Jersey Legislature last week approved the bipartisan Fair Price Protection Act, sending the measure to Gov. Mikie Sherrill, who is expected to sign it into law. If enacted, the law will take effect one year after signing.

The legislation would prohibit grocery stores and third-party grocery delivery platforms from using artificial intelligence, algorithms, or other technologies that rely on consumers' personal information to set different prices for identical food products. The ban also applies to pricing based on data gathered through electronic surveillance, including shopping histories, online activity, biometric information, genetic information, and certain protected characteristics.

Abuse of modern technology

"Surveillance pricing is an abuse of modern technology where artificial intelligence sets different prices for different customers," said state Sen. Joe Cryan, one of the bill's sponsors. "Retailers hurt consumers at a time when families already struggle to pay their bills."

The legislation also imposes a one-year moratorium on the installation of new electronic shelf labels, or digital price tags, in grocery stores while the state studies whether the technology could facilitate rapid, individualized price changes. Stores that already use the labels would be allowed to continue using them.

Surveillance pricing has drawn growing scrutiny from lawmakers, privacy advocates, and consumer groups who argue that advances in AI and data analytics could allow retailers to charge shoppers based on what algorithms predict they are willing or able to pay rather than offering a single price to everyone.

Prices based on personal data

Unlike traditional dynamic pricing, which adjusts prices based on supply and demand, surveillance pricing relies on personal information such as browsing behavior, purchase history, location, or demographic data to tailor prices to individual consumers.

New Jersey follows Maryland, which earlier this year became the first state to prohibit surveillance pricing for grocery purchases. Several other states, including New York, are considering similar legislation, reflecting growing concern over AI-driven pricing practices.

Consumer advocates praised the New Jersey measure as an important safeguard against discriminatory pricing. Business groups, however, argue the legislation could have unintended consequences.

They contend that restrictions on using customer data may make it more difficult to offer targeted coupons, loyalty rewards, and other personalized discounts that many shoppers value. Lawmakers say the bill includes exemptions intended to preserve legitimate loyalty programs and broadly available discounts while prohibiting discriminatory pricing practices.

The actual increase will be announced in October

By Mark Huffman of ConsumerAffairs

• The Senior Citizens League now projects a 3.8% Social Security cost-of-living adjustment (COLA) for 2027, up from this year's 2.8%, reflecting higher inflation.

• The advocacy group says even a larger COLA would still leave many retirees struggling, with average Social Security benefits well below estimated monthly living costs.

• A new TSCL survey finds 44% of older Americans now rely entirely on Social Security for retirement income, the highest share reported by the organization.

A stronger-than-expected increase in Social Security benefits may be on the horizon next year, but a seniors advocacy group warns it still won't be enough to keep pace with the rising cost of living.

The Senior Citizens League (TSCL) said its latest estimate puts the 2027 Social Security cost-of-living adjustment (COLA) at 3.8%, one full percentage point above the 2.8% COLA beneficiaries received this year. The projection follows the latest inflation data, which showed continued price pressures as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), the inflation gauge used to calculate Social Security's annual adjustment.

The COLA, which will be announced in October, is based on the CPI-W data for July, August and September.

If the forecast proves accurate, the average monthly retirement benefit would rise by about $77, increasing from approximately $2,026 to $2,103 beginning in January 2027.

But TSCL argues that the increase would still fall well short of what many retirees need to cover basic expenses.

Essential costs keep rising

According to the organization, the estimated monthly cost of living for a single older adult is roughly $2,700, including average housing costs and other essential expenses such as food, transportation and healthcare. That leaves the average Social Security benefit hundreds of dollars below what many seniors need to meet everyday expenses.

The group's newly released 2026 Senior Survey paints a picture of growing financial dependence on the program. It estimates that 24.8 million older Americansabout 44% of retireesnow rely on Social Security as their only source of retirement income, up from 39% a year earlier.

The survey also found that 57% of seniors live on less than $2,000 per month, while 13% survive on less than $1,000 monthly, levels TSCL says leave millions vulnerable to poverty and financial hardship.

Delaying medical care

"We're seeing inflation on the rise when more than half of seniors already can't afford basic living standards," TSCL Executive Director Shannon Benton said in a statement, adding that many older Americans are forced to delay medical care because of costs.

Benton said a larger COLA may sound encouraging compared with this year's adjustment but argued it does not erase the gap between retirees' incomes and their actual living expenses. She called on Congress and the White House to consider increasing Social Security benefits beyond annual inflation adjustments.

While TSCL updates its projection monthly, economists caution that the estimate could still change depending on inflation trends over the coming months. A cooling in prices could lower the final adjustment, while persistent inflation could push it higher before the official announcement in October.

The products may be subject to metal and plastic contamination

By Mark Huffman of ConsumerAffairs

• Mars Petcare U.S. is voluntarily recalling two lots of PEDIGREE High Protein Chopped Chicken & Duck Flavor canned wet dog food after discovering the products may contain hard pieces of metal with plastic.

• The recalled cans were intended to be destroyed but were apparently diverted and sold in the U.S. marketplace, according to the FDA.

• Pet owners are urged not to feed the affected food to their dogs. No illnesses or injuries have been reported, and consumers can request a replacement product from Pedigree.

Mars Petcare U.S. is voluntarily recalling two lots of PEDIGREE High Protein Chopped Chicken & Duck Flavor wet dog food after the products were found to potentially contain hard, sharp pieces of metal with plastic that could pose a risk to pets.

The recall affects only two lots of 13.2-ounce PEDIGREE High Protein Chopped Chicken & Duck Flavor canned dog food bearing the lot codes:

• 613C3KKCFC

• 613C1KKCFC

No other PEDIGREE products or Mars Petcare U.S. products are included in the recall.

Products were supposed to be destroyed

According to the U.S. Food and Drug Administration (FDA), the affected cans appear to have been fraudulently diverted into the U.S. marketplace after they had been designated for destruction. Mars Petcare said it is investigating how the products entered commercial distribution.

The presence of hard metal and plastic fragments could cause serious injuries if ingested by dogs, including choking, cuts to the mouth or digestive tract, or intestinal blockages requiring veterinary treatment.

As of the recall announcement, Mars Petcare said it had received no reports of illnesses or injuries linked to the recalled products.

What to do

Consumers who purchased cans with the affected lot codes should stop feeding them to their pets immediately. The company advises owners to discard the product safely or contact Pedigree for information about obtaining a replacement.

Consumers can contact Pedigree Consumer Care at 1-800-525-5273 or visit the company's recall information page for additional assistance.

The FDA said the recall applies only to the two identified lots and emphasized that no other Mars Petcare products are affected. Pet owners whose dogs show signs of illness after consuming the recalled food should contact their veterinarian promptly.

For different reasons, both buyers and sellers are on the sidelines

By Mark Huffman of ConsumerAffairs

• The U.S. housing market remains frozen by a "mortgage lock-in" effect, with millions of homeowners reluctant to give up 3% mortgages and buyers priced out by high home prices and elevated borrowing costs.

• Real estate experts say a nationwide housing crash is unlikely because a long-running shortage of homes continues to support prices, even as affordability has reached its worst levels in decades.

• Most analysts expect the market to remain sluggish through the rest of the decade, with modest price growth, more negotiating power for buyers, and regional differences replacing the pandemic-era housing boom.

The spring home-selling season ended on a subdued note, as fewer homeowners put their properties on the market, reflecting caution among both buyers and sellers. Sellers have withdrawn listings at a record rate as buyers have balked at record-high home prices.

The story of how we got to this point where millions of Americans cant afford to buy a home and whether the market will ever return to normal goes back to before the COVID-19 pandemic. According to the National Association of Realtors, the median price of an existing home in January 2020 was $266,300 a 6.8% increase from the year before.

However, at that price, the monthly payment with 20% down and a 6% mortgage rate was about $1,277, before taxes and insurance. By January 2026, the median home price had climbed to $396,800, an increase of more than $130,000 in six years. The mortgage payment on that home had risen to roughly $1,900, with taxes and insurance pushing the monthly housing cost to around $2,300.

Building houses had not become dramatically more expensive during that period. Instead, economists point to an unusual convergence of events: record-low mortgage rates, pandemic-driven demand for more living space, years of under-building after the Great Recession, and millions of millennials entering their prime home-buying years.

Market standoff

"In tons of markets people aren't necessarily under pressure to sell but they are choosing not to sell because of the fact that they have 3% mortgages," Jim Chamberlin, a Realtor at Vulcan7, told ConsumerAffairs. "What that has done is create a market where buyers don't really love today's prices, but sellers don't have much reason to discount either."

That phenomenon has become known as the "mortgage lock-in effect." Millions of homeowners refinanced or purchased homes during 2020 and 2021 when 30-year mortgage rates fell below 3%. Selling today would likely mean financing another home at more than twice that rate, dramatically increasing monthly payments even if the replacement home costs about the same.

The result is a housing market that appears frozen. Buyers face some of the least affordable conditions in decades, while existing homeowners have little financial incentive to list their properties. Inventory has improved from the extreme shortages of the pandemic years but remains below the level economists consider a balanced market.

Despite the affordability crisis, the experts we consulted see little chance of a nationwide collapse in home prices.

Price fundamentals still intact

"I don't believe we will see any significant fall in home prices," said Kaine Arkinson, managing director at Shepherd Commercial. "The fundamental support for pricing, namely chronic undersupply and consistent demand, remains intact. The issue is now affordability and wage growth."

Instead of a crash, Arkinson expects a prolonged period of sluggish price movement in which home values remain relatively flat while incomes gradually catch up. He predicts annual price appreciation of just 1% to 3% over the next four years, meaning inflation-adjusted home values could actually decline slightly.

Salim Chraibi, founder and CEO of workforce housing developer Bluenest, agrees that supply remains the market's defining issue.

"The structural reason is simple: we do not have enough homes," Chraibi said. While some Sun Belt markets that experienced heavy pandemic-era construction are already seeing price declines, he expects national prices to remain resilient because demand still exceeds supply in most regions.

Effect of the pandemic

Chraibi believes today's affordability problems would look very different had the pandemic not occurred. Without historically low mortgage rates, remote-work migration, and the buying frenzy they unleashed, he estimates the median U.S. home price today would likely fall between $310,000 and $340,000, rather than nearly $400,000.

"The more damaging legacy of those low rates is the lock-in effect," he said. "Homeowners sitting on 2.5% to 3% mortgages are not selling. That is compressing resale inventory in a way that will take years to unwind."

Other real estate professionals reached similar conclusions.

Mike Chambers, CEO of AI home-buying platform Ridley, estimates the median home price today would likely range from $325,000 to $375,000 if the pandemic-era buying boom had never occurred. While ultra-low interest rates accelerated appreciation, he argues the underlying housing shortage would still have pushed prices higher over time.

"The pandemic accelerated demand in ways we rarely see," Chambers said. "Those forces compressed many years of appreciation into a relatively short period."

Correction is unlikely

Alexei Morgado, founder of Lexawise, a company providing services to the real estate industry, said a significant nationwide correction is unlikely without an economic shock that forces large numbers of homeowners to sell.

"What I see now is a change in expectations," Morgado said, noting that buyers have become increasingly focused on monthly payments, while sellers who continue to price homes as they did during the peak of the pandemic often face longer selling times and must make concessions.

That distinction between prices and affordability has become a defining feature of today's market. While home prices have largely stopped their rapid ascent, elevated mortgage rates mean monthly payments remain near record highs for first-time buyers.

Regional impact

The experts also agree that the housing market is becoming increasingly regional.

Areas that saw explosive pandemic growth, particularly parts of Florida, Texas, and the Mountain West, are experiencing softer prices as inventory increases. Meanwhile, many Midwestern and Northeastern markets continue to post price gains because housing supply remains especially limited.

Looking ahead

Looking ahead, none of the experts expect a return to either the frantic bidding wars of 2021 or a repeat of the housing crash that followed the 2008 financial crisis.

Instead, they foresee a slower, more balanced market where buyers regain negotiating leverage, homes take longer to sell, and sellers must price properties more realistically. Price appreciation is expected to remain modest, but affordability is unlikely to improve dramatically unless mortgage rates fall meaningfully, wages rise faster than housing costs, or the nation substantially increases home construction.

For would-be homebuyers, that means patience may be rewarded with more choices and greater bargaining power, but not necessarily with dramatically lower prices. The consensus among industry experts is that America's housing affordability crisis is more likely to be solved by adding millions of new homes than by waiting for existing home values to fall.