The US housing crisis has worsened in the past few decades, with the unaffordability criteria hitting new peaks. The current US housing crisis is lethal in terms of acquiring a new home, as it requires a staggering $111K/year on average to purchase a house. That being said, the US housing narratives have also become brutal in terms of rent and mortgage, spiking to new highs while making it impossible for Americans to purchase a home in today’s world.

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The US Housing Crisis Deepens: What’s Happening?

The US housing crisis has now hit a new roadblock, with the element of unaffordability penetrating into the arena. Per the latest post by the Kobeissi letter, nearly 49% of Americans are currently struggling to afford rent or mortgage, a 44% hike from May 2025, a new survey by Redfin stated. Among this, Generation Z has been hit the hardest, with nearly 67% unable to afford a house in recent times.

In addition to this, 54% of Gen X 53% of millennials. And 36% of baby boomers cannot afford a house in the US today due to rising costs prevalent in the sector.

“The US housing affordability crisis is somehow still getting worse. 49% of Americans are now struggling to afford their regular rent or mortgage payments. Up from 44% in May 2025, according to a Redfin survey. Generation Z is hit the hardest, with 67% struggling to afford housing. This is followed by 54% of Gen X, 53% of Millennials, and 36% of Baby Boomers.”

Moreover, Americans have also been making sacrifices to increase their affordability to purchase a house. These include eating out less, skipping vacations, and delaying medical treatments to prioritize purchasing the house first.

“The most common sacrifices to afford housing are eating out less, skipping vacations, and delaying medical treatments.”

Money One Needs To Earn Annually To Afford A House In The US

The KL post was quick to outline more, stating the kind of sacrifices Gen Z has been making to afford a new home in the US. Examples include Gen Z selling their belongings, moving back with their parents to save more money, and taking up side hustles to level up their game.

Moreover, potential homebuyers may have to earn $111K a year to afford a decent house in the US, signaling a new stark reality.

“Gen Zers are going further. Even selling belongings, taking side hustles, and moving back in with their parents just to keep up with payments. This comes as homebuyers now need to earn $111,000/year to afford the typical US home. A $25,000 more than the median household income. Housing has never been so unaffordable in the US.”

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