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right spots are emerging on the affordability horizon, making it easier for young Americans to afford housing. According to a recent Redfin survey, seven in 10 Gen Z and millennial renters struggle to make their regular housing payments, as do 41% of homeowners in that age group.

    Baby boomers and Gen Xers are less likely to struggle with housing payments, but still face challenges. A significant portion of baby boomer renters (52%) and over two-thirds of Gen X renters report having a hard time making their regular housing payments.

    The survey results show that young renters who struggle to afford housing often make sacrifices such as eating out at restaurants less often (40%), taking no or fewer vacations (31%), and skipping meals completely (22%). Many also sell their belongings, delay medical treatments, and borrow money from family or friends.

    In contrast, struggling millennials and Gen Z homeowners are more likely to sacrifice luxuries like eating out and taking vacations. However, they're less likely to sacrifice necessities like food and healthcare.

    The affordability crisis is largely driven by the increasing cost of buying a home, which has risen faster than wages over the past few years. Young Americans are particularly vulnerable due to lower earnings, student loan debt, and limited equity from previous homes.

    However, there are signs that affordability may be improving in some parts of the US. Mortgage rates have dropped to a 10-month low, giving buyers more purchasing power. Redfin agents report that sellers are willing to negotiate as they take note of today's buyer's market.

    Affordability has also started to improve in several major metro areas, with the income needed to afford the median-priced local home declining from a year ago in 11 of the biggest metros. This could make it easier for young Americans to enter homeownership and start building equity.