Seven in 10 Gen Z and millennial renters are struggling to afford their monthly housing costs, according to a new report from Redfin. The same is true for 41% of their homeowner counterparts.
The report is based on a survey, commissioned by Redfin and conducted by Ipsos in May, that went to over 4,000 homeowners and renters and focuses on the nearly 2,000 respondents who reported housing cost struggles. These respondents said “they struggle greatly to afford housing payments, regularly struggle but sometimes OK, or sometimes struggle but generally OK.”
Older generations are less likely to struggle, the report noted; however, 52% of baby boomer renters and over two-thirds of Gen X renters reported having a hard time making their regular housing payments.
Of the younger generations, 40% of Gen Z and millennial renters said they are eating out at restaurants less often to make their monthly rent payments. This was the most common sacrifice among the younger age groups, followed by taking no or fewer vacations. In addition, 22% of younger renters reported skipping meals to make their rent payments, while 22% said they sold belongings, and 19% cited delaying medical treatments.
“Many Gen Zers and millennials are making real sacrifices—picking up side gigs, selling their possessions, even delaying doctor’s appointments—just to pay for the basic need of housing,” said Redfin chief economist Daryl Fairweather. “At the same time, a lot of the young people who can easily afford housing can do so because they have major financial support from their parents, with roughly one-quarter of the young Americans who recently bought a home using family money for their down payments.”
