Half of Americans Struggle to Pay Rent or Mortgage, With Gen Z Hit Hardest
MWN-AI** Summary
A recent survey by Redfin reveals that nearly half (49%) of Americans are struggling to afford their housing payments, a notable increase from 44% reported last spring. Gen Zers are particularly hard-hit, with 67% indicating difficulties in meeting rent or mortgage obligations, significantly higher than older generations. The survey involved 4,000 U.S. residents and highlights the increasing strain of housing costs on a broad demographic.
High median home-sale prices and elevated mortgage rates contribute to this financial pressure. Currently, homebuyers need to earn at least $111,000 annually to afford a typical home, which exceeds the national median household income by about $25,000. Young people, like the Gen Z cohort, find it especially tough as they are often still in the early stages of their careers and may lack savings for down payments or monthly housing costs.
To cope with these financial challenges, many Americans are making significant lifestyle sacrifices. The most common adjustments include dining out less (39%) and skipping vacations (34%). Alarmingly, some are resorting to skipping meals entirely (15%) and delaying vital medical treatments (14%). Among Gen Z, 35% are dining out less, and 18% have missed meals to manage housing expenses. Additionally, many are taking on side jobs, selling personal belongings, or moving back in with parents.
While homeownership among Gen Z remains low at approximately 27%, there are some signs of improvement, with a gradual increase in homeownership rates observed in 2025. Redfin anticipates that improving affordability conditions could assist in easing the housing burden as mortgage rates stabilize and wage growth accelerates.
MWN-AI** Analysis
The recent Redfin survey highlights a troubling trend: nearly half of Americans are struggling to afford their housing, with Gen Z experiencing the most significant financial strain. This scenario poses both challenges and opportunities for investors and those in the real estate sector.
As a financial analyst, it is essential to recognize the growing demand for affordable housing solutions. With Gen Z's homeownership rate hovering around 27.1%, compared to over half of millennials and 70% of older generations, developers and investors should consider investing in properties that cater specifically to younger buyers and renters. This demographic's unique needs—such as flexibility and affordability—can be addressed through the development of multi-family housing units or co-living spaces.
Moreover, the current economic climate, including high median home prices and mortgage rates exceeding 6%, indicates an imminent need for financial products that facilitate homeownership for first-time buyers. Lenders may find opportunities by tailoring mortgage offerings that require lower down payments or more favorable repayment terms, which would help mitigate Gen Z's financial burden.
Additionally, as consumer trends shift, businesses can capitalize on the sacrifices outlined in the survey—like decreased dining out or vacation spending—by targeting marketing efforts toward affordable lifestyle options. Offering budget-friendly services or products can resonate well with a financially constrained demographic, ultimately driving sales.
On a macroeconomic level, investors should stay alert to policy changes aimed at alleviating housing affordability issues. Increased wages combined with the anticipated stabilization of mortgage rates could signal a gradual recovery of the housing market, creating an opening for capital in both real estate and consumer sectors.
In conclusion, the ongoing housing affordability crisis presents challenges but also avenues for strategic investment and innovation. By focusing on the unique characteristics and needs of struggling demographics, especially Gen Z, financial stakeholders can position themselves advantageously in the evolving market landscape.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
- A higher share of Americans struggle to afford housing than last spring, according to a Redfin survey
- Gen Zers make sacrifices including selling belongings, working side hustles, and moving in with their parents to afford housing
- The most common sacrifices Americans make to afford housing are eating out less and skipping vacations
Roughly half (49%) of U.S. residents struggle to afford their regular rent or mortgage payments, according to a new survey from Redfin , the real estate brokerage powered by Rocket.
Gen Zers are more likely than older generations to struggle with housing payments. About two-thirds (67%) of Gen Zers struggle to afford their rent or mortgage, compared with just over half of millennials and Gen Xers (53% and 54%, respectively), and 36% of baby boomers.
These findings are from a Redfin-commissioned survey conducted by Ipsos in November 2025, fielded to 4,000 U.S. residents. Redfin considers survey respondents to struggle with housing payments if they selected “I struggle greatly to afford them,” “I regularly struggle, but sometimes okay,” or “I sometimes struggle, but generally okay.” Please see the full report for additional methodology details.
Overall, Americans are more likely to struggle to make housing payments than they were last spring. In a comparable Redfin survey conducted in May 2025, 44% of U.S. residents said they struggle to afford their mortgage or rent payment, compared with nearly half today.
It’s difficult for many Americans to afford housing because housing costs are high. The median U.S. home-sale price and average mortgage rates were historically high in November, when Redfin’s most recent survey was fielded, though they were not at record highs. Homebuyers need to earn $111,000 per year to afford the typical U.S. home, about $25,000 more than the median household income.
It’s particularly difficult for Gen Zers to afford housing because they haven’t yet reached their peak earning years and haven’t had much time to save for a down payment or monthly rent or mortgage payments.
“Buyers have been laying low for the last year or so because housing costs are high and the economy is uncertain. Young people are particularly concerned about job security and tariffs, and how those things will impact their pocketbooks and ability to make their housing payments,” said Desiree Bourgeois , a Redfin Premier agent in Detroit. “I recently met a young couple hunting for a house in the $300,000 range. They’re worried about whether the country is going to enter a recession and whether they may lose their jobs or see their home value go down. There are very few first-time buyers out there; the cost of housing is so high that it’s challenging to enter the market.”
Homeowners and Renters Are Borrowing Money, Skipping Meals to Afford Housing Payments
More than one in three (39%) Americans who struggle to afford housing are eating out at restaurants less often to make their monthly payments, making this the most common sacrifice. It’s followed by taking no or fewer vacations (34%).
Roughly one in six (17%) people work additional hours at their job to afford housing, and nearly one in six (16%) report selling belongings.
Some Americans are also making more consequential sacrifices: 15% skip meals entirely to afford housing, 14% have delayed medical treatments, 4% have delayed having children, and 4% have given up pets.
More than one-third (35%) of Gen Zers who struggle to afford housing report nixing restaurants, and 18% have skipped meals entirely. Among the other sacrifices Gen Zers are making: 20% have sold their belongings, 18% have worked a side hustle, and 15% have moved in with their parents.
Affordability struggles make it difficult for many young Americans to make their existing rental or mortgage payments, and they also make it difficult for young renters to break into the housing market. Just over one-quarter (27.1%) of Gen Zers own their home, compared to more than half of millennials and more than 70% of Gen Xers and baby boomers.
There are a few bright spots. The Gen Z and millennial homeownership rates are slowly ticking up as time goes on, with slightly more young Americans becoming homeowners in 2025 than the year before as affordability improved marginally. Redfin expects affordability to improve more in the coming year as mortgage rates stay closer to 6% than 7%, home-price growth loses steam, and wages increase faster than housing costs.
To view the full report, including a graph, additional survey results and a full methodology, please visit: https://www.redfin.com/news/struggle-to-pay-housing-gen-z/
About Redfin
Redfin is a technology-driven real estate company with the country's most-visited real estate brokerage website. As part of Rocket Companies (NYSE: RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin’s clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent.
You can find more information about Redfin and get the latest housing market data and research at https://www.redfin.com/news . For more information about Rocket Companies, visit https://www.rocketcompanies.com .
View source version on businesswire.com: https://www.businesswire.com/news/home/20260224984228/en/
Contact Redfin Journalist Services:
Isabelle Novak
press@redfin.com
FAQ**
How do the financial struggles of Gen Zers in affording housing payments impact the overall market dynamics for Rocket Companies Inc. Class A RKT?
Given the recent findings, what strategies might Rocket Companies Inc. Class A RKT implement to better assist Gen Zers in homeownership and affordability?
With an increasing number of Americans struggling to afford housing, how can Rocket Companies Inc. Class A RKT leverage technology to create solutions for potential buyers?
In light of the survey results, what are the implications for the stock performance of Rocket Companies Inc. Class A RKT as trends in housing affordability evolve?
**MWN-AI FAQ is based on asking OpenAI questions about Rocket Companies Inc. Class A (NYSE: RKT).
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