Half of Americans Struggle to Pay Rent or Mortgage, With Gen Z Hit Hardest

Why It Matters

The widening affordability gap threatens household stability and suppresses home‑ownership among the youngest cohort, tightening the future talent pipeline for the economy. Persistent payment strain could also depress consumer spending and reshape rental‑market dynamics.

Key Takeaways

• 49% of Americans struggle to afford rent or mortgage
• 67% of Gen Zers face housing payment difficulties
• Skipping restaurant meals is top sacrifice, 39% overall
• 18% of Gen Z skip meals entirely to pay housing
• Gen Z homeownership at 27%, far below older cohorts

Pulse Analysis

The latest Redfin‑commissioned survey highlights a deepening housing‑affordability crisis in the United States, with nearly half of respondents reporting difficulty meeting rent or mortgage obligations. While overall stress has risen modestly since the spring, the generational divide is stark: two‑thirds of Gen Zers say they struggle, compared with roughly half of older cohorts. This disparity reflects younger adults’ lower earnings, limited savings, and the lingering impact of pandemic‑era debt, all converging at a moment when median home prices and mortgage rates remain elevated.

Facing these pressures, households are making tangible sacrifices. Cutting back on dining out emerges as the most common coping mechanism, cited by 39% of all respondents and 35% of Gen Zers. More severe measures include skipping meals, delaying medical care, and selling personal assets. For Gen Z, side‑hustles, moving back with parents, and even postponing major life events such as having children have become commonplace. These behavioral shifts not only affect individual well‑being but also ripple through the broader economy, curbing discretionary spending and altering demand patterns in sectors ranging from hospitality to healthcare.

Looking ahead, analysts see a tentative bright spot. Mortgage rates are expected to stabilize near 6%, and home‑price growth is projected to decelerate, which could modestly improve affordability. However, without significant wage gains or policy interventions—such as expanded affordable‑housing programs or tax incentives for first‑time buyers—the generational gap in homeownership is likely to persist. Stakeholders from lenders to urban planners should monitor these trends closely, as prolonged payment strain could reshape rental markets, increase demand for multi‑family units, and influence long‑term economic mobility.