Financial Analysis: Rocket Companies Inc. Highlights Housing Affordability Crisis in Latest Survey

According to the survey, which sampled 4,000 U.S. residents in November 2025, 49% of respondents reported difficulties in affording their housing payments. This figure represents an increase from 44% recorded in a similar survey conducted in May 2025, highlighting a growing crisis in housing affordability.

Among the demographics surveyed, 67% of Generation Z respondents indicated they were struggling with housing costs, significantly higher than their millennial (53%), Gen X (54%), and baby boomer (36%) counterparts. This stark discrepancy underscores the unique challenges faced by younger Americans who are still building their careers and savings.

The survey findings coincide with elevated housing costs, as the median U.S. home-sale price and average mortgage rates remained historically high in late 2025. To afford a typical U.S. home, buyers need to earn approximately $111,000 annually—about $25,000 more than the median household income. This situation is particularly dire for Gen Z, who are yet to reach their peak earning potential and have limited savings for down payments or monthly housing costs.

Desiree Bourgeois, a Redfin Premier agent in Detroit, notes that the uncertainty surrounding the economy, job security, and potential tariffs has created a climate of caution among young buyers. Many are delaying home purchases due to fears of recession or declining home values, resulting in a significant reduction in first-time buyers entering the market.

The survey delves deeper into the sacrifices Americans are making to manage housing costs. Notably, 39% of individuals struggling to afford housing reported dining out less frequently, while 34% have cut back on vacations. Other sacrifices include working extra hours (17%), selling personal belongings (16%), and even more serious decisions like skipping meals (15%) and delaying medical treatments (14%).

Among Gen Z respondents, 35% reported reducing restaurant visits, and 18% admitted to skipping meals entirely. The financial strain has also prompted many young Americans to move back in with their parents or take on side hustles to make ends meet.

Despite the current challenges, there are signs of improvement in homeownership rates among younger generations. The rates for Gen Z and millennials have shown a slight uptick, indicating a marginal improvement in affordability. With expectations that mortgage rates will stabilize closer to 6%, alongside a slowdown in home price growth and faster wage increases, there is cautious optimism for the upcoming year.

Currently, just over 27% of Gen Zers own homes, compared to over half of millennials and more than 70% of Gen X and baby boomers. This disparity highlights the ongoing challenges for younger generations in achieving homeownership.

The survey results released by Rocket Companies Inc. through Redfin underscore a significant and growing issue in the U.S. housing market, particularly impacting younger generations. The findings serve as a call to action for industry stakeholders to address the affordability crisis and explore solutions that can facilitate easier access to homeownership. As the landscape evolves, the hope remains that market conditions will align to create a more favorable environment for young buyers in the near future.