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The majority of U.S. residents earning less than $50,000 a year are struggling to afford their regular mortgage or rent payments, with some resorting to skipping meals just to make ends meet, according to a Redfin survey.
The survey, commissioned by the real estate firm, found that 74% of respondents earning under $50,000 either sometimes, regularly or greatly struggle with their housing costs. Around 25% of them have skipped meals to afford their monthly housing costs. According to the survey, skipping meals is one of the most commonly cited sacrifices among people in that income bracket.
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Among that income cohort, 43% said they were eating at restaurants less often and 36% were taking fewer vacations or nixing them altogether. About 25% said they were borrowing money from friends or family to stay afloat.
A "for sale" sign is posted in front of a home for sale on Aug. 7, 2024 in San Rafael, California. (Justin Sullivan/Getty Images / Getty Images)
About 23% also admitted that they sold some of their belongings to afford their housing payments and just more than 20% delayed or skipped medical treatments, according to the survey.
However, a majority of consumers across income groups have been hindered by surging rental and home-sale prices over the last five years.
Although wages have increased over that time, they haven't outpaced housing costs.
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According to Redfin data, U.S. rental costs have largely flattened over the past year, but are still up 20% compared with pre-pandemic times.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| RDFN | REDFIN CORP. | 8.04 | -0.33 | -3.94% |
In October, Redfin reported that the number of renter households paying under $1,000 in monthly rent fell to 32.1%, the lowest share on record.
A "for sale" sign on a house in Philadelphia, Pennsylvania, on Aug. 16, 2024. (Joe Lamberti/Bloomberg via Getty Images / Getty Images)
Meanwhile, the cost of buying a home has surged, with median housing prices rising more than 40% since pre-pandemic times.
The sharp increase in home prices, coupled with high borrowing costs, pushed homeownership out of reach for many people, especially those earning under $50,000.
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Redfin reported in September that homebuyers need to earn at least $76,995 per year to afford the median priced starter home, which is about $250,000.
For context, home prices were up 5.2% in October compared with last year, selling for a median price of $435,051.