Americans Are Making Major Lifestyle Sacrifices to Afford Housing

Rising housing costs are reshaping how Americans think about homeownership and renting. A recent survey from real estate marketing platform Redfin found that about 44% of U.S. homeowners and renters struggle to keep up with their mortgage or rent. Although wages have grown in recent years, they haven’t kept pace with housing expenses. Since before the pandemic, the median home-sale price has climbed by over 40%, mortgage rates have nearly doubled, and median rent has gone up by more than 22%.

To cope with increased costs, many people are cutting back on smaller expenses like dining out or traveling. But for some, the sacrifices are much bigger, with some respondents reporting postponing having children, holding off on getting a divorce, or moving in with family to afford monthly housing payments.

Affordability challenges are spurring new living arrangements

Of those surveyed, 6.4%, or one in 20, say they have moved back in with parents to afford housing, and an additional 6.2% say they moved back in with other family members. A smaller percentage, 2.8%, say they moved in with their grown children to afford housing, and 5.7% report needing to find roommates.

A lack of affordability in the housing market is also shifting romantic relationships, with 5.3% of respondents reporting moving in with a significant other in order to afford monthly payments. On the other hand, 2.8% say they have postponed a divorce or separation because they can’t afford to live on their own. Additionally, 4% of respondents say they have decided against or are delaying having children due to high costs.

However, not all lifestyle changes are as extreme

While some Americans have had to take more extreme measures to afford housing, a majority of respondents report saving money by cutting back on vacations, eating out less, and picking up more hours at work. At 41%, limiting restaurant outings was the biggest reported money saver among survey respondents. It was followed by taking no or fewer vacations at 34.6%, and working longer hours at 19.1%.

Additionally, 16.1% of respondents say they have sold belongings to make ends meet, and 35.5% say they have borrowed or received money from friends and family in order to pay monthly housing costs.

When it comes to affording a home, there are also a number of amenities homebuyers are willing to compromise on

• As Affordability Concerns Grow, Homebuyers Shift Their Focus: Many homebuyers say they would forego having a garage or a large yard if it means being able to buy a home. 
• What Compromises Are Homebuyers Willing to Make In Order to Afford a Home?: Prospective buyers also say they would buy in a less ideal location if it means affording a home.