A recent survey by Redfin reveals that 74% of U.S. residents earning less than $50,000 per year struggle to make regular mortgage or rent payments. Among those affected, nearly one-quarter (24%) have reported skipping meals to cover housing costs.
In addition to meal-skipping, other common sacrifices include eating out less (43%), taking fewer vacations (36%), borrowing money from family or friends (25%), and selling belongings (23%) to make ends meet. Over 20% of respondents have delayed medical treatments, and 15% have taken on side jobs to help with housing payments.
While wages have increased in the last five years, housing costs have risen significantly more. Rent prices, although flattening in the past year, are still 20% higher than before the pandemic, and the availability of apartments under $1,000 has reached its lowest point ever. Home prices have also surged, with the cost of buying a home rising more than 40% since before the pandemic. For many people earning under $50,000, homeownership is out of reach—recent data shows that a household now needs an income of $77,000 annually to afford the median-priced starter home.
Gen Z and Millennials Face the Brunt of the Housing Crisis
Gen Z, who are entering their prime home-buying years, are particularly affected. Seventy-one percent of adult Gen Zers report struggling to afford housing, the highest share of any generation. Almost one-quarter (24%) of those Gen Zers have sold belongings to cover housing costs. Additionally, 21% have skipped meals, and 19% have moved in with a romantic partner to reduce expenses.
Millennials are also feeling the strain. Among those struggling to pay for housing, 23% report skipping meals, 21% have delayed medical treatments, and 19% have taken on side hustles to make ends meet. Some have even dipped into retirement savings (13%) to cover housing costs.
The housing affordability crisis is clearly top of mind for many, with 38% of voters in the 2024 election saying it influenced their presidential choice, and 40% stating it impacted their local voting decisions.
This survey was conducted by Ipsos in September 2024, with responses from 1,802 U.S. residents aged 18-65.
