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Things are brutal for Generation Z as they attempt to navigate life through the world of Bidenomics.
Due to economic hardships, a whopping 31 percent of Gen Z live at home with their parents, a Credit Karma survey of 1,249 U.S. adults found.
“Home ownership is in the rearview for many Americans as prices for everyday goods and services remain elevated and mortgage rates hover at a 20-year high. Rising housing costs are impacting more than current and prospective homeowners; renters also struggle to make ends meet while others crash at home to save money,” the poll said.
“According to a recent study conducted by Intuit Credit Karma, 48% of Americans don’t own a home. Instead, 36% rent and 11% live at home with their parents or other family members. The percentage of people living at home jumps to 31% when looking at Gen Z respondents, many of whom have struggled to flee the nest,” it said.
“Of those who currently rent, nearly a quarter (24%) say they can no longer afford to pay their rent. This problem was most pronounced among millennials and Gen Z (30% and 27%, respectively), compared to just 10% of respondents aged 69 and above. To make ends meet, many renters (38%) are having to sacrifice necessities to pay their rent, including 41% of Gen Z and millennials. Rising rent costs aren’t just impacting younger generations, either. 42% of Gen X and 25% of boomers also report having to sacrifice necessities to pay rent,” the poll showed.
“What’s more, some renters are reconsidering their living situation altogether. According to the study, nearly one-in-five (19%) American renters say they’ll have to move in with their family or friends because they can no longer afford their rent. This number jumps to 25% for Gen Z and millennial renters. For those who are able to remain in their current housing, 21% say they’re dependent on money from their family to do so – especially millennials and Gen Z (31% and 25%, respectively),” it added.
But the rising cost of housing is not only affecting Gen Z and millennials, consumer financial advocate at Intuit Credit Karma Courtney Alev said.
“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,” she said. “What’s most concerning is that rising housing costs aren’t just impacting younger generations, but older generations, too.
“Our research shows more than half of Americans (57%) allocate the majority of their income toward housing costs, leaving little room elsewhere in their budgets. In general, it’s recommended that consumers allocate half of their income for essentials, including housing and other necessities, like groceries and household bills,” Alev added.
“The remaining 30% should go towards nonessentials – things like dining out and entertainment – and 20% should go towards financial goals, such as saving an emergency fund or paying down debt. If your housing costs exceed 50% of your budget, you might consider looking for other housing options. That could mean switching neighborhoods or moving in with roommates to cut costs,” she noted further.
Before Christmas last month, a poll showed that those surveyed said Bidenomics caused them to spend less this past Christmas season and, in many cases, had them working more hours or working another job simply to afford the holidays.
In the survey, Empower’s 2023 holiday spending report, a whopping 74 percent of the 1,000 people polled said that inflation caused them to spend less this past holiday season, and 31 percent said they were working more hours to afford it, Fox Business reported.
“The survey shows that over a third (34%) are trimming their budgets in favor of saving this year, while others are cutting back on buying gifts or non-essential expenses like dining out to stay on track,” Empower representative Courtney Burrell said to Fox Business.
“How you allocate your holiday budget will depend on what’s most important to you – this year, you may prioritize travel to visit family that you typically only see during the holidays over decorations or cut back on social commitments in order to give yourself a larger budget for holiday gifts,” she said.