Are Homeowners Skipping Meals to Pay Rent?

🍽️ 25% of lower-income homeowners are skipping meals to afford their housing costs (Redfin, 2024).
🏡 Home prices have surged over 40% since pre-pandemic times, making homeownership unaffordable for many.
📈 Rent remains 20% higher than pre-pandemic levels, leaving renters with few affordable alternatives.
⚠️ 74% of homeowners earning under $50K struggle to meet mortgage or rent payments.
💰 Economists warn that rising housing costs could worsen wealth inequality, impacting both housing markets and economic stability.

The cost of housing in the U.S. has reached an all-time high, making it increasingly difficult for many families to afford their mortgage or rent. A recent Redfin survey highlights the severity of the housing affordability crisis, revealing that 25% of lower-income homeowners are skipping meals just to keep up with their housing payments. As the rising housing costs put more pressure on households, individuals are forced to make difficult sacrifices in other areas of their budget. This article explores the statistics, causes, and potential solutions for this growing crisis.

The Reality: Homeowners Are Skipping Meals to Pay for Housing

Recent data provides a stark picture of how rising housing costs are forcing people to cut spending on necessities. A Redfin survey found that 74% of U.S. residents earning less than $50,000 per year are struggling with housing expenses. Among this group:

25% have skipped meals to afford their housing payments.
43% have reduced spending on dining out, cutting back on restaurant visits.
36% have canceled or significantly reduced vacations to save money.
25% have borrowed money from friends or family to meet housing costs.
20% have delayed or entirely skipped essential medical treatments due to financial strain.

These alarming statistics indicate that a significant portion of lower-income homeowners are making serious sacrifices just to stay in their homes. When individuals must choose between paying rent or eating meals, the real estate market has a broad economic and social impact beyond just property values.

The Underlying Cause: Rising Housing Costs

The housing affordability crisis is primarily fueled by rising home prices and stagnant wages. The situation has worsened over the last several years due to:

A Surge in Home Prices

The cost of homeownership has been steadily rising, making it out of reach for lower-income Americans:

Median home prices have increased 40% since pre-pandemic years (Redfin, 2024).
Buyers now need to earn at least $76,995 annually to afford a starter home.
Rising mortgage rates have increased borrowing costs, making home loans more expensive.

Higher Rent Costs

For those unable to buy, renting hasn’t been a much better alternative:

Rental prices remain 20% above pre-pandemic levels, despite stabilizing in some areas.
In October 2024, only 32.1% of renters paid under $1,000 per month, the lowest recorded percentage (Redfin).
Many renters are now spending over 50% of their income on rent, far surpassing the recommended 30% financial threshold.

Wages Have Not Kept Pace

Though the cost of living has surged, salaries for lower-income families have not increased proportionally. As a result, basic necessities—including food, transportation, and healthcare—are becoming harder to afford.

How Low-Income Homeowners Are Affected

Cutting General Spending

While skipping meals is one of the most concerning sacrifices homeowners are making, others have had to:

Cut back on groceries and household essentials.
Delay important but non-emergency healthcare treatments.
Reduce spending on education for their children.
Dip into retirement or savings accounts just to stay afloat.

Long-Term Implications

If this trend continues, lower-income homeowners could be at risk of:

Increased debt levels from borrowing money for basic needs.
A widening wealth gap, as homeownership becomes unattainable for many.
Higher foreclosure rates, potentially leading to instability in the real estate market.

The economic impact extends beyond just individuals—it creates broader financial instability that affects both the housing market and local economies.

Nationwide Housing Trends and Supply Issues

One contributing factor to rising home prices is the ongoing housing shortage. This problem stems from several challenges:

Supply chain disruptions have led to delays in construction projects.
Material costs have skyrocketed, making it more expensive for developers to build new homes.
Zoning restrictions limit new housing developments in some areas, reducing available housing stock.
Investors purchasing homes to convert into rental properties have further reduced the number of homes available for buyers.

As demand continues to outpace supply, home prices remain high, limiting opportunities for first-time buyers.

The Rental Market: An Unsustainable Alternative

For many who can’t afford to buy a home, renting should be a viable option. However, rental costs are also at historic highs:

The national median rent remains 20% above pre-pandemic levels.
In some cities, renters are paying up to 50% of their income on rent, far above the recommended financial guidelines.
Rental availability is shrinking, leaving fewer affordable units on the market.

For those struggling with housing affordability, renting does not necessarily offer financial relief.

Las Vegas Real Estate: A Local Perspective

Las Vegas is one of the country’s most competitive housing markets, where:

Home prices continue to remain high due to demand.
Real estate investors are actively buying up properties, making affordability challenges worse.
High prices are forcing many locals to either rent indefinitely or leave the market entirely.

According to local real estate expert Steve Hawks, potential buyers should carefully monitor Las Vegas market trends and mortgage rates before purchasing.

Investor Perspective: Should You Buy or Wait?

For real estate investors, the current market presents both opportunities and risks:

High home prices make it difficult to achieve strong returns on investment properties.
Rising mortgage rates increase borrowing costs, making new investments riskier.
However, demand for rentals remains strong, leading to potential opportunities in rental income properties.

Investors should weigh short-term gains versus long-term risks before committing to any property purchases in an uncertain housing market.

The Broader Economic Impact of Housing Stress

The current housing affordability crisis reaches beyond personal finances—it affects the entire economy:

Lower consumer spending as homeowners cut back on essentials.
Increased food insecurity, with individuals skipping meals to afford housing.
Greater healthcare burdens, as medical treatments are postponed due to housing costs.
Rising homelessness rates, as more people struggle to keep up with rising rents and mortgages.

If trends continue without intervention, these widespread economic challenges will intensify.

Solutions and Potential Policy Changes

Possible solutions to improve housing affordability include:

Expanding affordable housing initiatives to support low-income buyers.
Implementing zoning law reforms to encourage more housing development.
Adjusting wage policies to better align with today’s cost of living conditions.
Providing government-backed subsidies or relief programs for struggling homeowners.

Perhaps most critically, increasing the supply of affordable homes and rental units is a necessary step toward stabilizing the housing market.

Navigating Housing Challenges

If you’re struggling with rising housing costs, consider:

Budgeting more effectively to cut back on unnecessary expenses.
Exploring alternative housing options, such as co-living arrangements or relocating to more affordable areas.
Working on financial planning, including saving for emergencies or considering low-cost financing options.

As homeownership becomes increasingly difficult, renters, homeowners, and investors must stay informed on real estate market trends and financial planning to make the best decisions for their future.

FAQs

Why are homeowners skipping meals to afford housing?

Many homeowners face rising mortgage and rent costs that outpace their income, forcing them to cut back on essentials like food.

What percentage of homeowners are facing financial sacrifices due to rising housing costs?

A staggering 74% of low-income homeowners struggle to afford their mortgage or rent, and 25% skip meals to make payments (Redfin, 2024).

How do current home prices compare to pre-pandemic levels?

Median home prices have increased by over 40% since pre-pandemic times, making homeownership significantly less affordable (Redfin, 2024).

What demographic is hit hardest by the housing affordability crisis?

Households earning under $50,000 annually are most affected, with many forced to make severe financial sacrifices.

How has the rental market evolved in response to economic pressures?

Rents remain 20% higher than pre-pandemic levels, and the number of affordable rentals has significantly decreased (Redfin, 2024).

What impact do these trends have on real estate investment?

High borrowing costs and rising home prices limit buying opportunities, but growing rental demand still offers potential investment returns.

How does this crisis relate to Las Vegas housing trends?

Las Vegas retains strong demand, but affordability challenges mirror national trends, affecting both buyers and investors.

Citations

Redfin (2024). 74% of U.S. residents earning under $50,000 struggle with their mortgage or rent payments, and 25% have skipped meals to afford housing.
Redfin (2024). Over 20% of low-income homeowners delayed or skipped medical treatments to afford their housing payments.
Redfin (2024). Median home prices have risen over 40% since pre-pandemic times.
Redfin (2024). To afford a median starter home, buyers now need to earn at least $76,995 per year.
Redfin (2024). Rental costs remain 20% above pre-pandemic levels despite flattening over the past year.

If you’re considering buying, selling, or renting, staying informed on housing trends is essential. Evaluate your financial options carefully before making any major real estate decisions.

Are Homeowners Skipping Meals to Pay Rent?