Sixty-nine percent of Americans paid more than a quarter of their pretax income on housing, according to CNBC and SurveyMonkey’s Quarterly Money Survey, published Oct. 6, with 20% spending more than half.
The Department of Housing and Urban Development considers 30% the thresholdfor affordability.
When you compare typical earnings with average housing costs, that could be a stretch: American households earned a median of $87,460 pretax in 2025, the latest year that data from the U.S. Census Bureau is available. Using the 30% rule, that means they could comfortably afford to spend no more than $2,186.50 per month on housing.
Someone who puts 10% down on a $410,700 house — the median-priced home in the second quarter of 2026 — and finances the rest with a 30-year-fixed-rate mortgage with a 7.0% rate, will pay $2,459 in loan payments each month, per CNBC Select’s mortgage calculator.
That’s already over budget — and it doesn’t include other homeownership expenses, like property taxes, insurance and utilities.
Renting isn’tmuch cheaper, though there can be more breathing room. A family leasing a median-priced two-bedroom apartment paid $1,896 in August 2026, according to Realtor.com, leaving little left over for utilities, insurance or other housing expenses.
Despite this, renters and buyers can still save. Here are three strategies for cutting housing costs.
Talk to us
Are you living paycheck to paycheck, or do you have a financial success you’re comfortable sharing with a reporter? Please fill out this quick form.
How to save on housing costs
Earn rewards for paying your rent or mortgage
The Bilt Cards will reward you for putting money toward housing, with no transaction fee.You can earn Bilt Points and Bilt Cash, which can be redeemed for travel bookings ora down payment on a home. Up to $100 of Bilt Cash earned rolls over to the next year.
You can earn rewards by buying a house with an affiliated agent or purchasing a home with Bilt’s Buy a Home program. Plus, you can transfer your points to over a dozen partner reward programs, such as JetBlue and American Airlines.
The Bilt Blue Card is the company’s fee free option: With this card, you’ll earn one point for every dollar spent and receive $100 in Bilt cash once you’re approved. You’ll also get free phone protection.
The Bilt Blue Card offers a solid entry card to the world of Bilt, offering 1X on everyday purchases without charging an annual fee.
- Earns ultra-valuable flexible rewards
- No annual fee
- Can earn up to 1.25X points on rent and mortgage payments
- Additional steps for no-fee rent payments
- Bilt Cash redemptions are complicated
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select’s editorial staff.
- Earn up to 1.25X points on rent and mortgage payments with no transaction fee.
- 1X points on everyday spend
- Welcome offer: $100 of Bilt Cash when you apply and get approved. At the end of each calendar year, any Bilt Cash balance over $100 will expire.
- Bilt Point redemptions include airlines, hotels, future rent and mortgage payments, Lyft rides, statement credits, student loan balances, a down payment on a home, and more.
- Earn additional points through Bilt Neighborhood Benefits™ when you use your card at Bilt’s network of 50,000+ merchant partners.
- Other benefits: No foreign transaction fees, Cellular Wireless Telephone Protection, Purchase Assurance, MasterRental Coverage (See Guide to Benefits)
Balance transfer fee
Bilt’s mid-tier option is the Bilt Obsidian Card; it costs $95 per year and you’ll get $200 in Bilt Cash upon approval. In addition to the point-per-dollar structure the free version offers, users earn 3X points on dining and groceries and 2X points on travel.
You can also get a $50 semiannual hotel statement credit and trip delay reimbursement.
The Bilt Obsidian Card offers 3X Bilt Points on key everyday categories, like groceries (up to $25,000 per year) or dining (your 3X category choice remains in effect for the entire calendar year). It also comes with a $50 Bilt Travel Portal hotel statement credit semiannually.
- High return on dining or grocery purchases
- Option to earn up to 1.25X points on rent and mortgage payments with no transaction fee
- Features a $100 Bilt Travel Hotel credit, applied twice a year as $50 statement credits
- Additional steps required for no-fee rent payments
- Spending cap on grocery rewards
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select’s editorial staff.
- Earn up to 1.25X points on rent and mortgage payments with no transaction fee.
- 3X points on your choice of grocery (up to $25K/year) or dining. Your 3X category choice remains in effect for the entire calendar year.
- 2X points on travel
- 1X points on everyday spend
- Welcome offer: $200 of Bilt Cash when you apply and get approved. At the end of each calendar year, anyBiltCash balance over $100 will expire.
- $100 Bilt Travel Hotel credit. Applied twice a year, as $50 statement credits, for qualifying Bilt Travel Portal hotel bookings.
- Bilt Point redemptions include airlines, hotels, future rent and mortgage payments, Lyft rides, statement credits, student loan balances, a down payment on a home, and more.
- Earn additional points through Bilt Neighborhood Benefits™ when you use your card at Bilt’s network of 50,000+ merchant partners.
Balance transfer fee
Choose a mortgage that offers below-average rates
While the average 30-year fixed-mortgage rate is 7.40% as of October 15, there are home loan options that can save you money.
- Adjustable-rate mortgages: These mortgages have a fixed-rate term of three, five, seven or 10 years, followed by a rate that fluctuates every six or 12 months. The initial rate is typically lower than a fixed-rate mortgage.
- 15-year fixed-rate mortgages: A shorter term can help you get a lower rate, but monthly payments will likely be higher.
- Federal Housing Administration (FHA) loans: This government-backed loan is available to qualifying buyers with a credit score of at least 500.
- Department of Veterans Affairs (VA) loans: This government-backed loan is available to qualifying veterans and service members.
- U.S. Department of Agriculture (USDA) loans: This government-backed loan is available to qualifying homebuyers in select rural and suburban zip codes.
- Credit unions: Not-for-profit credit unions typically offer mortgages at lower rates than traditional banks.
Rocket Mortgage and Chase Bank offer a variety of these loan types and both rank highly on J.D. Power’s customer satisfaction surveys.
Rocket is a good choice for those who prefer to do their borrowing remotely. Chase has more than 5,000 locations, making it a good fit for homebuyers who want an in-person borrowing experience.
Rocket Mortgage
-
Annual Percentage Rate (APR)
Apply online for personalized rates; fixed-rate and adjustable-rate mortgages are available.
-
Types of loans
Conventional loans, FHA loans, VA loans, Jumbo loans, low-down-payment mortgages
-
Terms
10-, 15- and 30-year fixed-term conventional loans, 30-year VA and FHA loans, custom mortgages with fixed-rate terms from 8 to 29 years.
-
Credit needed
620 for conventional loans
-
Minimum down payment
0% for VA, 1% for RocketONE+, 3% for conventional, 3.5% for FHA, 10% to 15% for jumbo
Chase Bank Mortgage
-
Annual Percentage Rate (APR)
Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included
-
Types of loans
Conventional loans, FHA loans, VA loans, DreaMaker℠ loans and Jumbo loans
-
Terms
-
Credit needed
-
Minimum down payment
3% if moving forward with a DreaMaker℠ loan
-
Offers first-time homebuyer assistance?
Shop for renters and homeowners insurance
Finally, CNBC Select insurance reporterElizabeth Knueven suggests insurance policyholders compare offers for renters and homeowners insurance every time your policy comes up for renewal.
Protect your property and possessions from fire, theft, and other unexpected perils.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
Amica offers two tiers of homeowners insurance: A standard policy and the brand’s Platinum Choice plan, which covers more situations and has extended coverage for jewelry and liability. Add-on options include computer coverage, sump pump backup coverage, and dwelling replacement coverage.
In addition to shopping around, here are some other ways to save:
- Raise your deductible: You can save 25% if you raise your deductible from $500 to $1,000.
- Bundle: If you have a car, you can save up to 40% by bundling your renters or homeowners insurance with your auto insurance.
- Improve your credit: Insurers consider your credit when giving you a premium. You can save by paying down debt, keeping credit utilization low and paying all bills on time.
Subscribe to the CNBC Select Newsletter!
The CNBC Select Recommends newsletter delivers practical money tips each week along with expert-picked financial product recommendations. Sign up here.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every personal finance product review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of personal finance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best personal finance products.
Catch up on CNBC Select’s in-depth coverage ofcredit cards,bankingandmoney, and follow us onTikTok,Facebook,InstagramandXto stay up to date.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
About The Author
