Recent research by Intuit Credit Karma found that 25% of American renters struggle to pay their rent due to high economic uncertainty and persistent inflation. Additionally, 15% of renters have said they must return to living with family or friends.
Home prices and mortgage rates have been a national worry, but another group of Americans are struggling to make ends meet; some are even being evicted from their houses—owners of the rental property. Since almost half of Americans do not own their own home, rent price variations significantly impact many people trying to stretch their budgets.
Generation Z (12–27 years old) renters have it tough: 31% already live at home with their parents, and 27% claim they can’t pay rent.
But it’s not only an issue with Gen Z. Almost half of all Americans(46%) feel they will never be able to afford a house of their own, and almost half of Generation Xers(44–59) and Baby Boomers(60–78) say they are cutting down on essentials to pay rent.
The majority of Americans spend most of their income on housing expenditures, leaving little money for other expenses, according to Intuit Credit Karma.
While rent has been rising nationwide for some time, Americans have also had to deal with inflation, increased borrowing rates, and record-high credit card debt. Not to mention that federal student loan payments started again in October.
Despite the cessation of stimulus checks and other forms of relief from the epidemic, housing-related prices have risen by 7.4 percent overall.
Living expenses have forced hundreds of thousands of Americans to leave high-priced locations for lower-cost states in the South.
Residential demand and consumer behavior are anticipated to change dramatically if many Americans return to living with their parents. If demand becomes too concentrated in one direction, relocating back home may solve the rent issue.
The tenants’ difficulties have persisted through the ages, and some people still find it more difficult than others to own property in their names.
In light of this, generation Z and millennials will naturally turn to their families for support.
The highest annual rent increase rate was 18% in 2021. Despite the much-reduced rates, rent is projected to increase by zero to two percent in 2024.