US household financial and housing affordability challenges

Economic pressures in the United States have led to increasing difficulties for households regarding housing and general cost-of-living expenses.

Research from the Urban Institute highlighted a rental affordability crisis, noting that 20% of surveyed adults aged 18 to 64 were unable to make a full rent payment at least once in 2025. Middle-income renters experienced a notable rise in hardship, with the share of those struggling with payments increasing from 14.3% in 2024 to 21.6% in 2025. Researchers observed that the housing ladder is becoming ‘increasingly jammed’ as middle-income households compete for rental units. While lower-income renters remain the most vulnerable—with nearly 28% unable to afford housing payments—the trend suggests economic pressures are spreading across higher income brackets. Additionally, over 20% of renters reported difficulties paying for utilities and fuel, with rent defaults appearing most pronounced in the South and Northeast regions.

By late 2026, Pew Research Center data indicated broader financial instability, with 27% of American adults unable to pay all monthly bills. The study found that 44% of Americans reported difficulty paying for at least one basic necessity, such as rent, mortgage, or transportation, within the past year. Specifically, 22% of adults experienced difficulty covering transportation expenses, a burden disproportionately felt by those under 30 (36%) and lower-income adults (42%). Furthermore, 53% of respondents reported lacking sufficient emergency savings to cover three months of expenses, and 70% have resorted to cutting back on discretionary spending.