Nearly 49% of U.S. residents reported struggling to afford their regular rent or mortgage payments, according to a Redfin-commissioned survey conducted by Ipsos. This share is higher than in a similar survey from spring 2025, indicating that housing affordability challenges have worsened for many Americans.
The burden is uneven across generations, with Gen Z adults now the hardest hit, with about 67% saying they struggle to cover housing costs. By comparison, slightly more than half of millennials (53%) and Gen Xers (54%) reported difficulty, and 36% of baby boomers said they struggle.
“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.”
Analyzing Factors
When the survey was fielded, U.S. home prices and mortgage rates were still historically high, requiring a household income of roughly $111,000 to afford a typical home — significantly above the median household income.
To make ends meet, many are cutting back or making sacrifices. Among those who struggle with housing payments, 39% are eating out less and 34% are taking fewer vacations. About 17% said they work additional hours, and 16% reported selling possessions to afford housing. More extreme measures included 15% skipping meals and 14% delaying medical care.
Gen Zers, in particular, are making notable sacrifices: 35% are eating out less, 18% have skipped meals, 20% have sold belongings, 18% work side hustles, and 15% have moved in with their parents to manage housing payments.
A Downward Trickle
These affordability pressures also weigh on younger generations’ ability to enter the housing market, as only about 27% of Gen Zers own a home, compared with more than half of millennials and more than 70% of Gen Xers and baby boomers. Despite these challenges, Redfin expects modest improvements in affordability if mortgage rates remain closer to 6%, home-price growth slows, and wages grow faster than housing costs.
