US households face rising financial pressures despite asset growth

A Federal Reserve Survey of Consumer Finances report reveals that while the median net worth of US households rose 2% to $215,900 (inflation-adjusted) between 2022 and 2025, financial strain is increasing for many. The proportion of households reporting loan delinquencies rose from 12.2% to 19.6% during this period.

Rising costs are significantly impacting daily living. A Consumer Reports survey found that 81% of long-term residents have seen electricity bills increase, with 28% reporting hikes between 20% and 49%. To cope, approximately one-fifth of respondents have reduced food spending or switched to cheaper alternatives, while 25% have adjusted heating or cooling to uncomfortable levels.

In Los Angeles, residents have reported utility bills tripling, prompting Mayor Karen Bass to demand that the Los Angeles Department of Water and Power (LADWP) allow customers to pay what they can afford and halt shut-offs for those unable to pay high bills by the end of the year.

While retirement account balances have grown, particularly for older age groups, younger households (under 35) have seen a decline in median net worth. Additionally, the median monthly mortgage payment now accounts for approximately 33% of median monthly income, the highest level recorded in the survey's history.