Rent Prices and Side Hustles: Gen Z’s Cost-of-Living Crisis

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Across the United States, Gen Z is feeling the weight of the rising cost of living. Between

minimum wage pay and rent, many young adults struggle to stay financially stable, often leading them to take on side hustles just to make ends meet. What used to be a means of earning extra cash has now become an economic survival strategy.

Rent prices continue to see a rise across college towns and major cities, whether in South

Carolina, Florida, or California, pushing Gen Z into a harsh financial reality. According to an

analysis conducted by Research Polygon, a recent study shows that Gen Z’s low national

homeownership rate (20.23%) signifies a massive future borrower pipeline. However, the high

rent burdens in these key markets point to a generation with diminished savings capacity and potentially higher DTI ratios. Homeownership, once viewed as a natural step into adulthood, is becoming more unrealistic. The desire for mobility and affordability is not just a preference; it’s a response to economic pressure. With expensive insurance, high mortgage rents, and rising down payment requirements, many young adults don’t even view homeownership as an attainable short-term goal. The supply of affordable housing has also failed to match growing demand.

For many young adults, a 9-5 is no longer enough to sustain a basic lifestyle. Side hustles are

becoming a financial necessity rather than a luxury. Whether it's delivery services, freelancing, content creation, or customer service, young adults are making a way to diversify their income out of necessity, not ambition. According to LendingTree, a national survey found that for many, a side hustle is essential: 61% of Americans with a side hustle say their life would be

unaffordable without it.

For many young professionals, like Ramia Love, it becomes hard. “ I work as a leasing agent,

and it does help with my bills, but it’s never enough to actually survive on, so, from time to time I use DoorDash on the weekends to make extra money,” said Ramia Love, a leasing agent. The balance between one primary job with a secondary hustle has become a practical strategy for covering essential costs like groceries, transportation,rent, and even healthcare.

Throughout the country, from college towns to bigger cities like Charlotte, Miami, and Houston, Gen Z finds itself stretched thin. Wages struggle to keep up with inflation, rent keeps climbing, and young adults often find that relying solely on one job simply isn’t cutting it. The combination of housing cost and the rise of side hustles isn’t just a trend; it’s a financial reality reshaping how Gen Z navigates adulthood.

For Gen Z, financial security isn’t about budgeting; it’s about adjusting expectations, building multiple streams of income, and redefining what financial stability looks like today in America.