Redfin’s latest commissioned survey may serve as a reminder to mortgage professionals to check in on their past clients this upcoming Thanksgiving. The survey, comprising over 1,800 responses from homeowners and renters, shows nearly three quarters (74%) of U.S. residents who earn less than $50,000 annually will sometimes, regularly, or greatly struggle to afford their mortgage or rent payments.
Among respondents who make less than $50K per year, nearly one-quarter (24%) reported that they have skipped meals to afford their monthly payments. Food was the most commonly cited sacrifice among people in that income category, topped only by eating at restaurants less often (43%), taking no or fewer vacations (36%), and borrowing money from family or friends (25%).
Additionally, nearly one-quarter (23%) said they have sold belongings to afford housing payments, while over one in five (21%) have delayed or skipped medical treatments, and 15% have worked a side hustle.
The cost of rental and home sales has mounted to new heights over the past five years. Though wages have increased over that time period as well, it hasn’t kept up with the rising cost of housing. Most individuals earning less than $50K are renters, and a recent Redfin analysis indicates that the share of U.S. apartments costing less than $1,000 per month is dwindling down to its lowest level on record, increasing difficulties for lower-income Americans to find affordable living.
However, the cost of buying a home has increased even more with nationwide median housing costs rising more than 40% since before the pandemic. Elevated home prices and rising mortgage rates have pushed costs near their record high, and people earning under $50,000 cannot afford to buy a home: A Redfin analysis from this past summer found that a household needs to earn $77,000 per year to afford the median-priced starter home.
Some Gen Zers also struggle to afford housing, and of those respondents, nearly one-quarter (24%) have sold belongings to pay their monthly housing costs. Also, about one in five (21%) have skipped meals, while 19% have moved in with a romantic partner and 10% have delayed or decided against having a child.
Nearly one-quarter (23%) of millennials who struggle to pay for housing report they have skipped meals to make their monthly payments. Redfin’s survey found 21% have delayed or skipped a medical treatment, while 19% have worked a side hustle and 13% have dipped into retirement savings.
Sky-high housing costs weighed heavy on the minds of voters this past election season. A separate Redfin survey found that 38% of people who had voted as of November 1 said housing affordability impacted their presidential pick, and 40% said it impacted who they voted for locally.
