Approximately 87% of Americans view the current cost of living as a crisis, and 67% live paycheck to paycheck due to runaway housing, food, and utility costs, according to reports from Get Out of Debt Guy and eMarketer. Driven by inflation, household costs have risen significantly, with food up 20.2%, electricity up 26.6%, and vehicle insurance up 20.3%, forcing many to take second jobs or relocate.
Key Drivers and Impact of the Cost-of-Living Crisis
- Essential Costs Outpace Wages: While wages have risen, they have failed to keep pace with the exploding cost of necessities like housing, healthcare, and childcare.
- Housing & Rent Crisis: Housing costs have surged by 28.2%, and nearly 4 in 10 Americans have considered moving because their area has become too expensive.
- Daily Survival Strain: Half of Americans (52%) are struggling to pay monthly bills and rent on time.
- Grim Outlook: Nearly 8 in 10 Americans (78%) reported that everything became more expensive in 2025, and 46% believe costs will become even less affordable in 2026.
- Regional Differences: While states like Hawaii, Alaska, and Colorado are perceived as the least affordable, others like Mississippi and Oklahoma are considered more manageable.
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