More than 20% of Americans are experiencing difficulties paying rent amid high rental prices and affordability issues, according to a report.
At least 24% of renters in the United States said they could no longer afford to pay for rent. That number rose to 27% among Gen Z renters and 30% among millennials. In comparison, only 10% of Americans said they were struggling to pay rent, per a recent study conducted by Intuit Credit Karma.
Among those who could pay rent, a total of 38% said they needed to sacrifice necessities to make ends meet. This rose to 41% among Gen Z and millennials and 42% among Gen X renters. In addition, 25% of boomers also reported having to make sacrifices to afford rent.
For those who are able to remain in the property they are renting, 21% said they are only able to do so with help from their family. The number increases to 25% among Gen Z and 31% among millennials.
How Rental Prices Affected Americans
The inability to afford rent pushed nearly one in five renters to move in with their family or friends. The number jumps to 25% for Gen Z and millennials.
In comparison, a Pew Research study published in March 2022 found that 18% of Americans moved in with their relatives to save money. At the time, it was the highest recorded number of shared household since 1971.
The high rental prices are now motivating 59% of Americans to buy a home. However, 48% said they are unsure if they would ever be able to buy a home at all amid elevated interest rates. Of those currently looking for a home, 30% said they are dependent on money from their family to make the purchase.
"The current housing market has many Americans making adjustments to their living situations, including relocating to less expensive cities and even moving back in with their families," Courtney Alev, consumer financial advocate at Intuit Credit Karma, said. "What's most concerning is that rising housing costs aren't just impacting younger generations, but older generations, too."
The median asking rent in America has declined to $1,967 in November 2023. While it was 2.1% lower than the same month in 2022, it was still 22% above pre-pandemic levels.
