In recent years, housing costs have skyrocketed, while wages have only increased slightly. Because of this, a number of people who could previously afford housing now report giving up basic necessities in order to do so. According to a recent survey from real estate marketing platform Redfin, 74% of U.S. residents earning under $50,000 struggle to cover mortgage or rent payments. Among them, 24% report skipping meals to make ends meet.
While rents have leveled off recently, they remain 20% higher than pre-pandemic levels, and affordable apartments under $1,000 per month are at a record low. Homeownership is even less accessible, as median home prices have risen by more than 40% since before the pandemic, and households now need an income of $77,000 to afford a median-priced starter home.
We also broke down these survey results by generation. Gen Zers typically earn less money than older generations, and many believe it’s harder for them to feel financially secure than it was for their parents at the same age. Just over one-quarter of adults Gen Zers own their home, and they’re entering homebuying age during a housing affordability crisis.
Roughly seven of every 10 (71%) adult Gen Zers report they sometimes, regularly or greatly struggle to afford their regular mortgage or rent payments, the highest share of any generation. Sixty-five percent of millennials struggle to afford their housing payments. Read more
