Most Americans Feel Cost of Living is Too High

Many people in the United States feel they are in a cost of living crisis. Most Americans say it is hard to pay for things they need, like food and bills. Some people have had to move because they cannot afford to live where they are.
By Newsroom | Economy, United States |

Widespread Economic Strain Reported Across Nation

A significant majority of Americans, nine out of ten, believe the United States is experiencing a full-blown "cost-of-living crisis." This sentiment is underscored by widespread reports of difficulty in meeting basic financial obligations. Nearly half of surveyed individuals struggle to pay monthly bills on time, with an equal number finding it hard to afford essential items like groceries. This economic pressure is not a fleeting concern; a substantial portion of Americans anticipate that costs will continue to rise, impacting their financial stability.

Economic Indicators and Public Perception

Recent surveys and reports indicate a pervasive sense of economic hardship among the American populace. The feeling of a cost-of-living crisis is prevalent, affecting individuals across various demographics and geographical locations.

  • Prevalence of the Crisis: Nine out of ten Americans surveyed by Talker Research and Study Finds assert that the U.S. is facing a significant cost-of-living crisis.

  • Bill Payment Struggles: Approximately half of Americans report difficulty in paying monthly bills, including rent, on time. Study Finds states that 50% struggle to afford groceries, and 52% have difficulty paying bills.

  • Tax Refunds as Necessities: Tax refunds, often viewed as discretionary income, are increasingly being relied upon for basic needs. 73% of individuals feel they need their refund more than ever, with nearly three in ten planning to use it for essentials like groceries and gas.

  • Relocation Due to Costs: The inability to afford current living situations has forced a considerable number of Americans to move. 38% have relocated due to rising costs, with younger generations, particularly Gen Z, being disproportionately affected. 64% of Gen Z believe they will never afford to live in their desired locations.

Evidence of Financial Strain

Data compiled from multiple surveys provides concrete evidence of the financial pressures faced by Americans. These figures illuminate the depth of the economic challenges.

Read More: UK Economy Grows Very Slowly at End of 2025

  • Difficulty Affording Necessities:

  • 50% of Americans find it difficult to afford groceries (Study Finds).

  • 50% struggle to pay monthly bills on time (Study Finds).

  • Reliance on Tax Refunds:

  • 73% state they need their tax refund more than ever (Study Finds).

  • 28% plan to use their tax refund for necessities like groceries and gas (Study Finds, Citizen Watch Report).

  • Impact on Housing:

  • 38% of Americans have moved due to living costs (Study Finds).

  • 50% of Gen Z have relocated because they could not afford their previous residence (Study Finds).

  • 64% of Gen Z believe they will never be able to afford living where they want to live (Study Finds).

  • Perception of Price Increases:

  • 78% reported that "everything" became more expensive in 2025 (Talker News).

  • 46% believe costs will continue to increase throughout 2026 (Talker News).

Generational Disparities

While the cost-of-living crisis affects a broad spectrum of the population, younger generations appear to be bearing a heavier burden.

Read More: Nikki Haley Says Many People Don't Feel Hopeful About the Economy

  • Younger Generations' Challenges: Gen Z is significantly impacted, with a large percentage forced to move due to affordability issues and expressing skepticism about future homeownership in desired areas.

  • Long-Term Implications: CFP Board notes that younger generations are more likely to make decisions that could negatively affect their long-term financial future as they navigate current economic pressures.

Broader Economic Factors

Beyond immediate concerns about daily expenses, underlying economic factors contribute to the widespread feeling of a crisis.

  • Rising Housing Costs: Several factors have contributed to an increase in housing expenses.

  • Childcare Expenses: The cost of childcare has surged, partly due to a shortage of early education workers. For some families, childcare costs exceed those of groceries or even rent.

  • Healthcare Costs: An increase in healthcare costs is also a significant concern for Americans, as indicated by reports from FT.com.

Expert Insights

Financial professionals acknowledge the gravity of the situation and its multifaceted nature.

Read More: US Debt Growing Fast, Experts Say It's a Problem

"Consumers concerned about retirement preparation may benefit from consulting a CFP® professional." – CFP Board

"Debt remains a major challenge for Americans. CFP® professionals are uniquely positioned to meet this demand and help American consumers navigate uncertainty while prioritizing their short- and long-term financial goals.” – CFP Board

Conclusion and Future Outlook

The data strongly suggests that a significant majority of Americans perceive a severe cost-of-living crisis. This perception is rooted in tangible financial struggles, including difficulty paying bills, affording necessities, and facing increased housing and childcare costs. The economic challenges appear to be systemic, with a substantial portion of the population expecting these conditions to persist. The impact on younger generations is particularly pronounced, raising concerns about their long-term financial well-being. The situation necessitates a thorough examination of the underlying economic drivers and their ongoing effects on American households.

Sources

Read More: Global Food Prices Dropped in April

Frequently Asked Questions

Q: Do most Americans think living costs are too high?
Yes, nine out of ten Americans believe the country is in a cost of living crisis.
Q: Are people having trouble paying bills?
Yes, about half of Americans find it hard to pay their monthly bills on time.
Q: Are young people affected more?
Yes, younger people like Gen Z are finding it harder to afford where they live and have had to move more often.
Q: What are the main reasons for this?
People are finding it hard to pay for groceries, housing, and childcare. Many also worry about rising healthcare costs.