In recent years, housing costs have soared for both homeowners and renters while incomes have stagnated, trends that potentially threaten the financial security of vulnerable groups. Compounded with the fact that housing is the biggest monthly expense for many households, those who find themselves struggling to keep a roof over their head may face the difficult choice of forgoing other basic needs such as food and health care. This brief looks closely at financial insecurity and material hardship among homeowners and renters, controlling for demographic and economic differences and income. Findings include the following:

• Compared with homeowners, renters are less likely to have access to emergency savings and more likely to experience an unexpected drop in income.
• Nearly half of renters report at least one material hardship in the past year, compared with just over one-third of homeowners; renters consistently report higher rates of material hardship across all domains in our study.
• Although homeowners report greater financial security and lower rates of material hardship than renters, many low-income homeowners still struggle to meet their basic needs.
• Among adults reporting low confidence in their savings capability, renters are more likely than owners to report experiencing hardship.

Our research adds to growing evidence that resource-strapped families face difficult choices when paying for housing and basic needs; weakening housing safety would only increase the material hardships they already experience.