A recent survey revealed that nearly half of Americans are struggling to afford rent or mortgage payments, reflecting a growing crisis in the housing market. About 49% reported experiencing housing cost burdens, compared to 44% in the spring of last year, with younger generations—particularly Generation Z—being the most affected.
The survey, conducted in November 2025 with 4,000 participants, classified respondents as housing-burdened if they described their situation as severely strained or frequently difficult. The report attributed the issue to rising home prices and higher borrowing costs relative to income growth.
In November, the median home price stabilized at a level requiring an annual household income of $111,000—significantly higher than the national average income of $86,000. Although mortgage interest rates have declined from their peak, they remain elevated, making homeownership difficult.
Desiree Bourgeois, a real estate agent, explained that young people are pulling back from purchasing homes due to high costs and economic uncertainty, turning homeownership into an increasingly unattainable dream.
The crisis has forced many to make significant sacrifices. Among those affected, 39% reduced spending on dining out, and 34% gave up vacations. Others have taken on extra working hours or sold possessions to cover costs. Some sacrifices have gone as far as skipping meals, postponing medical care, and even delaying starting families or keeping pets.
Despite these substantial pressures, the homeownership rate among young people rose slightly in 2025 due to a modest improvement in affordability. Economists expect further improvement by 2026 as interest rates stabilize, home price growth slows, and wages increase.
Nevertheless, the significant gap between housing costs and income remains a major barrier for many young Americans, raising questions about the possibility of achieving long-term economic stability in the post-pandemic era.
