America’s deepening affordability crisis summed up in 5 charts

Inflation may have cooled down in the U.S. compared to the post-pandemic years, but many Americans are still feeling the impact of rising prices. From struggles to pay bills to concerns about their financial future, the affordability crisis is hitting hard for millions of people. While the Consumer Price Index hit a 40-year high of 9.1% in June 2022, the current inflation rate is still causing difficulties for individuals and families.

The rising cost of daily necessities like healthy food, along with long-term increases in housing and healthcare expenses, are contributing to the financial strain felt by many Americans. Factors such as a lack of available homes due to cutbacks in construction after the Great Recession and steep tariffs have fueled inflation and made it challenging for people to make ends meet.

According to an October CBS News poll, inflation and the economy are now top concerns for Americans. Jeremy Tolbert, a 47-year-old web developer from Kansas, shared how his family’s health care premiums are set to rise by 18% next year, leading them to cut back on other expenses like food.

Food prices have been on the rise, with grocery prices increasing by 2.7% in September compared to the previous year. While overall food prices have gone up by more than 18% since January, many Americans are finding it harder to afford groceries on a day-to-day basis. This discrepancy between official economic measures and people’s daily experiences of inflation is causing financial stress for many households.

Housing affordability is another major concern, with almost three-quarters of Americans stating that housing has become more unaffordable in recent years. The high cost of homes, coupled with a shortage of housing inventory, has made it difficult for average earners to afford a typical home. The surge in home prices, fueled by low interest rates during the pandemic, has further exacerbated the housing affordability crisis.

Child care costs have also seen a significant increase, with families spending a substantial portion of their income on full-time day care. The rising cost of child care has forced some parents to reconsider having more children, as the financial burden continues to grow.

Health care expenses, including insurance premiums and out-of-pocket costs, are adding to the financial strain on Americans. The emergence of expensive treatments and an aging population requiring more care have contributed to the rising cost of health care services.

Utility costs, particularly electricity bills, have also been on the rise, with Americans paying an average of $265 per month in utility expenses. Rate hikes and increased demand for electricity have led to higher energy bills, disproportionately affecting low- and middle-income families.

Overall, the financial challenges faced by many Americans across various essential spending categories highlight the ongoing affordability crisis in the country. As inflation continues to impact the cost of living, individuals and families are finding it increasingly difficult to make ends meet and plan for their financial future.