Half of US Residents Struggle to Pay Monthly Housing Bill

What does it take to keep a roof over your head right now? For half of America’s homeowners and renters, it takes skipped meals, pulling back from needed medical treatments, working overtime, and selling one’s possessions. Others – including millennials — raid their retirement savings. As for that dream vacation, for many it is likely to remain just that – a dream.

These are the findings of a survey commissioned by Redfin and conducted by Qualtrics in February 2024. The nationally representative survey of 3,000 households showed that 1,494 “sometimes, regularly or greatly struggle to afford regular rent or mortgage payments.” “Housing has become so financially burdensome in America that some families can no longer afford other essentials,” stated Redfin economics research lead Chen Zhao.

According to Redfin, the typical household earns roughly $30,000 less than it needs to afford the median-priced home and rents are once again climbing. In addition, the income needed to afford a starter home is up 8% from a year ago.

In just the past year, the median home sale price rose 5%, and mortgage rates are about 7%, Redfin reported. Indeed, according to Realtor.com’s March housing report, the median listing price of a home shot up 38.9% from March 2019 to March 2024.

Every ethnic and age and group has been affected, Redfin found. Drawing on retirement funds to pay for housing costs was deployed by over one-quarter of baby boomers (27.5%), one in seven millennials (13.5%) one in six (15.5%) of Gen Xers, and even Gen Zers (6.5%). White homeowners were most likely to adopt this strategy, followed by Asian/Pacific Islanders, Hispanic and Black respondents. One in six respondents resorted to borrowing from friends or family and one in seven delayed or cancelled medical treatment.

Black respondents were most likely to work longer hours to keep up with payments. Hispanics tended to sell belongings. One in four Gen Zers resorted to both strategies as well as skipping meals.

And that dream vacation became just a fantasy for many: 43% of baby boomers, 36.8% of Gen Xers and 31.3% of millennials. The rates were highest among Asian/Pacific Islanders (43.8%) and white respondents (40%).

While half the survey respondents said they could easily afford their rent or mortgage payments, that response was most common among homeowners (60%) compared to renters (31%). The results also varied by age and demographic. Just over half of white respondents (54.5%), found it easy to pay up while 37.8% of Hispanic, 46.6% of Black and 47.4% of Asian/Pacific Island respondents were also untroubled.

Unsurprisingly, baby boomers were less bothered by affordability, followed by Gen Xers, millennials, and Gen Zers.

“Fortunately, the country’s leaders are starting to pay attention, and homebuyers may get a reprieve in June if the Federal Reserve cuts interest rates, which would bring down the cost of getting a mortgage,” said Zhao.

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