WASHINGTON, February 25 — The US Affordability Crisis remains a dominant concern for American households, with more than 80% of respondents saying their financial situation has not improved despite recent economic growth, according to a new YouGov–MarketWatch survey released this week .
The poll highlights persistent frustration over elevated living expenses, even as headline inflation has moderated from its peak levels. Rising grocery bills, housing costs, healthcare expenses, and utility prices continue to strain household budgets across income groups.
The findings underscore a disconnect between macroeconomic indicators and everyday financial realities experienced by consumers.
Survey Signals Persistent Cost Pressure
According to the survey, over four in five Americans reported that affordability has either worsened or remained unchanged over the past year . Only a small percentage said their financial situation had meaningfully improved.
Respondents cited food prices and rent as the most significant burdens. While inflation has slowed compared to previous years, many essential goods remain substantially more expensive than pre-2022 levels.
Energy and insurance costs were also frequently mentioned as key stress points in household spending.
Inflation Slows, But Prices Stay Elevated
Recent data from the US Bureau of Labor Statistics shows that annual consumer price inflation has cooled compared to its peak above 9% in 2022. However, cumulative price increases over the past several years have significantly raised the baseline cost of living.
Food prices remain elevated, with grocery costs still well above pre-pandemic levels. Housing affordability has also been pressured by high mortgage rates, which have hovered near multi-year highs following aggressive rate hikes by the Federal Reserve.
The Federal Reserve raised benchmark interest rates rapidly between 2022 and 2024 to combat inflation. While the pace of price increases has slowed, borrowing costs remain elevated, affecting mortgages, credit cards, and auto loans.
Income Growth Lags Perceived Expense Growth
Although wage growth has shown resilience in certain sectors, many households report that salary increases have not kept pace with cumulative price rises.
The survey results suggest that economic growth figures, including GDP expansion and lower unemployment rates, have not translated into perceived financial relief for a majority of Americans.
Labor market strength has remained relatively stable, with unemployment near historically low levels. However, rising household debt levels and higher interest payments continue to weigh on disposable income.
Consumer credit balances, particularly credit card debt, remain elevated as households rely more on borrowing to manage everyday expenses.
Political and Economic Implications
The affordability issue remains central to economic policy discussions in Washington. Lawmakers continue to debate fiscal measures aimed at addressing household financial strain, including tax policies and targeted relief initiatives.
The Federal Reserve has indicated that it remains focused on returning inflation to its long-term 2% target. However, policymakers have also acknowledged the delicate balance between controlling prices and sustaining economic growth.
Market analysts note that consumer sentiment plays a significant role in shaping economic momentum. Weak confidence can slow spending, which accounts for roughly two-thirds of US economic activity.
Market Reaction and Broader Impact
Financial markets showed limited immediate reaction to the survey data. Major US equity indices traded within a narrow range following the report’s release.
However, consumer-focused sectors, including retail and discretionary spending companies, remain sensitive to signs of weakening household purchasing power.
Bond markets continue to monitor inflation expectations closely. Treasury yields have fluctuated in recent sessions as investors assess the future path of interest rates.
The US dollar index remained relatively stable following the poll’s publication, indicating that currency markets were focused more on macroeconomic data releases than sentiment surveys.
Background Context
The US Affordability Crisis has been a defining economic theme since the surge in inflation that began in 2021. Supply chain disruptions, energy market volatility, and strong post-pandemic demand contributed to rapid price increases.
Although inflation has moderated in recent quarters, the cumulative impact on household budgets remains significant. Even as the rate of increase slows, prices rarely return to previous levels.
This structural price reset has reshaped consumer spending behavior. Many households report cutting discretionary spending, delaying large purchases, and seeking lower-cost alternatives.
Economic researchers note that affordability perceptions often lag behind statistical improvements in inflation metrics. Consumers typically respond to actual price levels rather than percentage changes.
Outlook
Upcoming economic data, including consumer price index updates and retail sales figures, will provide further insight into whether price pressures are easing meaningfully.
Policymakers and market participants will continue monitoring household sentiment as a key indicator of economic stability.
For now, survey data suggests that the majority of Americans continue to feel financial strain, reinforcing affordability as one of the most pressing economic challenges facing the United States in 2026 .