Respondents said they relied on other coping strategies to manage housing costs, such as selling personal items (23%), delaying or skipping treatment (21%), or taking on a second job (15%). I’ve been there before.
The Redfin survey was conducted by Ipsos and surveyed 1,802 U.S. adults ages 18 to 65 in September 2024.
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While wages have risen over the past five years, they have not kept up with the rise in rents and home sales costs over the same period.
Most individuals with incomes under $50,000 are choosing to rent, and while rental prices have stabilized somewhat over the past year, they are still about 20% higher than pre-pandemic levels. A Redfin study released last month found that the number of rental households with monthly payments of less than $1,000 has reached an all-time low, further limiting affordable housing options.
The challenge is even more pronounced for prospective homebuyers, as the median home price in the U.S. is more than 40% higher than it was before the pandemic. A report released in the summer by Redfin found that households currently need an annual income of $77,000 to buy a median-priced starter home.
This affordability crisis is especially hard on younger generations like Gen Z, who tend to have lower incomes than older generations.
More than 70% of Gen Z adults are struggling to pay their rent or mortgage, by far the highest percentage of any generation. Of these Gen Zers, 24% have sold their belongings, 21% have skipped meals, 19% have moved in with a significant other, and 10% have delayed having children to make housing more affordable. I chose not to give birth.
Millennials are also feeling the pressure, with 65% of them saying they have difficulty covering housing costs. Among Millennials, 23% have skipped a meal, 21% have delayed or missed medical care, 19% have taken up a second job, and 13% have missed a post-retirement job to keep up with housing payments. I’ve been depleting my savings.
Email Richelle Hamiel
