Americans Skip Meals to Afford Homes

Americans are sacrificing vacations and meals to keep a roof over their heads, according to a recent survey from real estate platform Redfin.

A fifth of those questioned said they have gone without food to save money so that they can direct the cash towards paying their rent or mortgage.

And more than a third said they had decided against taking holidays as worries rise over their ability keep up payments for housing. Some Americans have had to take second jobs and delay or skip health treatments.

“Housing has become so financially burdensome in America that some families can no longer afford other essentials, including food and medical care, and have been forced to make major sacrifices, work overtime and ask others for money so they can cover their monthly costs,” Chen Zhao, Redfin’s economics research lead, said.

Mortgage rates have been elevated since last year when they hit a peak of 8 percent, the highest since the turn of the century. They decelerated somewhat at the start of the year, but have ticked over the past few weeks at about 7 percent. The median monthly mortage payment at a 6.79 percent home loan rate was at $2,700 as of March 31, more than 9 percent higher than a year ago, according to Redfin.

Meanwhile, the high cost of home loans has meant that prospective buyers are delaying purchases and flocking into the rental market, contributing to elevated monthly rent prices. The median asking rent jumped by more than 2 percent in February to nearly $2,000 in what Redfin points out is the highest increase since early 2023.

“Buyers need to earn $114,000 to afford the typical U.S. home—35 percent more than the typical household makes. But that’s an improvement from October, when buyers needed to earn a record $121,000—51 percent more than the median household income,” Redfin added.

The platform polled more than 1,490 people who were finding it challenging to afford housing in February.

About 13.5 percent of millennials decided to use retirement savings to make their monthly housing payments. More than a quarter of baby boomers surveyed were doing the same.

There were differences according to demographic groups. Black Americans were more likely to work extra hours, while Hispanic households tended to sell their belongings to cover their housing costs. Asian and Pacific Islanders and white Americans chose to cut back on vacations.

Redfin’s Zhao suggested that the outlook could change if government policies aimed at providing housing costs relief come into effect and the Federal Reserve slashes borrowing costs at some point this year.

“The country’s leaders are starting to pay attention, and homebuyers may get a reprieve in June if the Federal Reserve cuts interest rates, which would bring down the cost of getting a mortgage,” she noted.