Homeowners have more to pay than just rent and mortgage payments, And there are operating costs to worry about. according to a new redfin According to the survey, 49% of US residents are struggling to pay their rent or mortgage, and the cost of living is to blame.
At the heart of the issue is the rising cost of food. What is shocking in the survey is that 15% of the people surveyed said that they have completely given up food to afford housing.
Brian Williams, a home care worker based in Madison, Wisconsin, who is living on a salary of $17.65 an hour, said Guardian: :
“I know things are worse because I’m living it and I feel it every day. It’s so hard to make rent, pay your bills, buy food, gas, and decide who you can pay (and) who you can leave. (I) ask myself which one should I take when I know I need both, or worry about whether I’ll have enough money to get by until the second payday? Or will I have enough money to cover my light bills? Will there be enough money to pay?”
Food prices have increased 35% in five years
according to redfinRenters need to earn $76,020 a year to afford the average rent in the US, which is still less than the $111,252 needed to buy the average priced home. As of mid-February, the median household income is $86,000.
However, Redfin’s figures do not factor in the cost of groceries, which are rising amid tariffs, higher fuel prices, machinery costs, labor increases and higher food production costs.
a report of Nerdwallet States that prices have risen nearly 35% since 2019 new York Times The Bureau of Labor Statistics reports that the cost of food at home has increased Overall up 2.4% over last 12 monthsTill January. Food prices rose 2.9% in January compared to last year is predicted 3.1% growth in the next year, Guardian Report citing USDA data. The food insecurity rate increased to 16% in November, from 12.7% in January 2025.
“In the last year, the cost of materials has increased moved up from tariffs and labor costs moved up by the deportation of workers – particularly for low-wage work done by recent immigrants,” said William Masters, a food economist and professor at Tufts University in Massachusetts. USA today. “Since wages for most Americans have not risen as much as prices, purchasing power has declined.”
According to the Associated Press-NORC Center for Public Affairs Research, as cited according to moneyOnly 14% of Americans say grocery prices are not a financial concern. The numbers are even higher for Gen Z and those earning less than the national average wage. For landlords, this financial strain means tenants have little wiggle room when rent and food costs remain the same.
A crisis for landlords and tenants
For landlords, pressure increase the rent Driven by rising insurance, tax and material costs and by Inability to refinance amid stubborn interest rates. For tenants, the cost of high utility bills, gas, clothes, and, of course, food means they are being forced to make ends meet. lateral movementSell ​​excess stuff, or move back in with your parents, especially Gen Z renters.
This means an extra layer Due diligence This should now be applied to landlords who want to invest, maintain stable revenues and pursue aggressive rent increases for lease renewals.
access to low-cost supermarkets Case
Homeowners also need to take into account proximity to nearby supermarkets when deciding where to invest. as of 2026 RE/MAX SURVEY, Among 1,000 potential home buyers beach age of Among 18-65s who plan to buy a home in the next 18 months, 57% said proximity to the purchase was an important consideration. It is logical to assume that the tenants felt the same way.
This also shows that retailers with the lowest prices receive a larger incentive. A consumer Reports Study Looking at grocery prices across the country found that Costco ranked cheapest nationwide, at 20% less than the Walmart baseline.Whereas Whole Foods was about 40% more expensive than Walmart.
State-by-State Analysis
According to a recent news WalletHub According to the survey, residents of poor states like Mississippi, West Virginia and Arkansas spend the largest share of their income on groceries, about 2.6% of their monthly income, even though food prices in those states are not the highest in the country.
WalletHub analyst Chip Lupo explained:
“While grocery prices have risen significantly in recent years, the states where people spend the largest percentage of their income on groceries are not actually the states with the highest prices. Instead, the average income in these states is significantly lower, so even with reasonable grocery prices, residents have to spend a higher percentage of their earnings than people in states with more expensive products.”
Since food is a non-negotiable item, renters immediately notice a difference in their grocery bills. However, landlords who want to rent to tenants who are relatively unaffected by food prices will need to invest in states where home prices are generally higher, and cash flow Far from guaranteed.
States where groceries take up the largest share of average income each month:
- Mississippi: 2.6%
- West Virginia: 2.54%
- Arkansas: 2.44%
- Louisiana: 2.38%
- Kentucky: 2.37%
- Alabama: 2.33%
- new Mexico: 2.3%
- oklahoma: 2.22%
- South Carolina: 2.21%
- Tennessee: 2.19%
Conversely, the states that are least affected by grocery prices are:
- California: 1.66%
- Washington: 1.66%
- Virginia: 1.63%
- Colorado: 1.61%
- Connecticut: 1.61%
- Utah: 1.58%
- new Hampshire: 1.56%
- Maryland: 1.55%
- new Jersey: 1.51%
- Massachusetts: 1.51%
final thoughts
Your tenants’ ability to afford groceries can seriously impact their ability to pay rent on time. Hungry children come face to face with angry landlords.
it where carefully tenant screening comes in use. Tenants earning more with less debt and more credit score When it comes to leasing apartments are usually at the top of the list. You may also now consider adding people with SNAP and WIC benefits to your tenant profile.
Additionally, landlords can also want Consider incentives for tenants who pay on time or give welcome gifts he Help reduce food costs. This could be as simple as a gift certificate to a local restaurant or a one-year Costco membership, However rules apply.
Most forums agree that it is best to avoid incentives that could void your lease or set a bad precedent. However, a Costco gift membership that a renter might not consider on their own due to cost end savings They get money and help in the long run Guarantee Your rent payment comes on time.
