A recent survey commissioned by Redfin reveals that a significant majority of U.S. residents earning under $50,000 face serious challenges in affording housing. The findings highlight the tough choices many individuals must make to meet their rent or mortgage obligations, with nearly a quarter of respondents admitting to skipping meals to manage their housing costs.
Key Findings from the Survey
The survey, conducted by Ipsos in September 2024, included responses from 1,802 U.S. residents aged 18 to 65, with a focus on the 621 participants earning less than $50,000. The results indicate that:
Struggling to Afford Housing: Approximately 74% of respondents in this income bracket reported that they sometimes, regularly, or greatly struggle to afford their mortgage or rent payments.
Sacrifices Made: Among those struggling, 24% have skipped meals to cover their housing costs, while 43% have reduced dining out, 36% have taken fewer vacations, and 25% have borrowed money from family or friends.
Generational Differences: The survey revealed that nearly 71% of Gen Z respondents (ages 18-27) struggle with housing affordability, the highest percentage among all age groups. In comparison, 65% of millennials (ages 28-43) reported similar challenges.
Specific Sacrifices by Income and Generation
For those earning under $50,000, the sacrifices made to afford housing include:
- Selling Belongings: 23% have sold personal items to make ends meet.
- Medical Delays: 21% have postponed or skipped medical treatments.
- Side Hustles: 15% have taken on additional work to supplement their income.
Among Gen Z respondents who struggle with housing costs, notable sacrifices include:
- Selling Belongings: 24%
- Skipping Meals: 21%
- Moving in with Partners: 19%
- Delaying Parenthood: 10%
Millennials reported similar struggles, with 23% skipping meals and 21% delaying medical treatments to manage housing expenses.
The Broader Context of Housing Affordability
The survey results come against a backdrop of rising housing costs. Over the past five years, both rental and home purchase prices have surged, significantly outpacing wage growth. Although rents have stabilized somewhat, they remain approximately 20% higher than pre-pandemic levels, with the availability of affordable apartments dwindling. The median price of homes has increased by over 40% since the pandemic began, making homeownership unattainable for many low-income earners. A Redfin analysis indicates that a household now needs an annual income of $77,000 to afford the median-priced starter home.
The issue of housing affordability has resonated with voters, as evidenced by a separate Redfin survey conducted prior to the recent elections, which found that 38% of voters indicated that housing affordability influenced their presidential choices.
Conclusion
The findings from this survey underscore the urgent need for solutions to the housing affordability crisis facing many Americans, particularly those earning under $50,000. As costs continue to rise and wages fail to keep pace, the sacrifices made by individuals and families highlight the broader implications of this ongoing issue on health, financial stability, and overall quality of life.
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