Nearly half of Americans are struggling to cover their rent or mortgage, with the financial squeeze hitting the youngest adults the hardest, according to a new Redfin survey. Forty-nine percent of U.S. residents said they face challenges affording their regular housing payments, up from 44% in a similar survey conducted in May 2025.
Gen Zers are feeling the pressure most acutely. About two-thirds (67%) of those born roughly between 1997 and 2012 report difficulty paying rent or a mortgage, compared with just over half of millennials (53%) and Gen Xers (54%) and only 36% of baby boomers. Redfin said high home prices, combined with elevated mortgage rates, are driving the affordability gap. The typical U.S. home now requires an annual income of roughly $111,000 to afford, about $25,000 above the median household income.
To cover these costs, many Americans are making significant sacrifices. Some are cutting back on everyday luxuries like dining out or skipping vacations, the survey found. Gen Z respondents reported selling personal belongings, taking on second jobs or moving back in with parents to afford housing.
More extreme measures include delaying medical treatments or skipping meals. The survey also found that 4% of respondents have postponed having children and a similar percentage have given up pets due to housing expenses.
The financial strain is not only affecting monthly budgets, but it is also slowing the path to homeownership. Just over a quarter of Gen Zers currently own their homes, compared with more than half of millennials and over 70% of Gen Xers and baby boomers.
Many younger adults are still paying off student loans, haven't built significant savings for a down payment and haven't reached peak earning potential, compounding the challenge of breaking into the housing market.
Despite the challenges, there are signs of slow improvement. Redfin noted that homeownership rates for Gen Z and millennials inched upward in 2025 compared with the previous year as affordability pressures eased marginally.
"We expect affordability to improve more in the coming year as mortgage rates stay closer to 6% than 7%, home-price growth loses steam, and wages increase faster than housing costs," Redfin said.
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