Living with a coworker/friend may have ruined our friendship and I don’t know how to tell him I’m leaving

I moved in with a coworker who became one of my closest friends. I genuinely love his family and appreciated everything they did for me, but after many months of living together, I realized mixing friendship/work/living situations was probably a mistake.

My lease ended in January, and he told me he wanted to turn half of his basement into a studio apartment. I thought it sounded like a great idea, especially because I trusted him. He hired a contractor back in November and… we’re now in May with almost nothing done. This has somehow become a never-ending project. He’s on his fifth plumber. One got deported, others refused to finish previous work, and honestly nothing about the timeline has made sense.

In the meantime, I’ve been paying $1,000 a month for a bedroom. I mostly stay in the room because I don’t feel comfortable fully using the common areas. There’s also an Airbnb tenant living there who I constantly clash with. There was even a whole issue over the washer/dryer because she left her clothes sitting there all day and I needed work clothes for the next morning. I moved them to the dryer and she completely lost it. She also leaves messes everywhere and makes comments whenever I dog-sit for my friend.

On top of that, whenever my friend travels, I end up doing a lot around the house — bins, errands, helping with things involving the kids, etc. It’s started to feel less like I’m renting a room and more like I’m a built-in helper. He also constantly makes “jokes” about rent. For example, I once asked if the Airbnb tenant could move her car so all of us could fit in the driveway, and he responded with, “Well, she pays $2,300. You only pay $1,000.” He says it jokingly, but after hearing comments like that over and over, it’s started to bother me because I do pay rent and I’m not living there for free.

After really thinking about everything, I decided this situation isn’t healthy for me anymore. I’m 26 years old, commuting far every day, living with a family, an Airbnb tenant, and waiting on a basement project that may never actually be finished. My mental health has honestly taken a hit. I feel trapped, uncomfortable, and like I have zero independence. I can’t really have friends over, I don’t feel fully at home, and I desperately want my own space and freedom.

I recently got approved for an apartment closer to the city and my move-in date is in July. I’m happy, but also terrified to tell him because they’ve spent so much money on the basement project already. Part of me worries he’ll take it personally or even ask me to leave before July.