This is how close American households are to the financial edge

[Zorro]

Affordability has been a politically potent word, but an ill-defined measure of financial pain, often used as a reference to inflated prices.

But new research from the Brookings Institution released Wednesday describes affordability by comparing the rising costs of essentials against family incomes. By that measure, the report found, in 2024 45.5% of U.S. households did not earn enough to cover their necessities.

The report concluded that a mere $1,000 hike in the annual cost of living would leave another 3 million households unable to make ends meet.

That precarity is partly due to the gap between inflation and wages. In 2024, national wages saw just a small 1.3% bump, well below the rate of inflation of 2.9% that year, according to the Census Bureau.

"My main takeaway is that when we talk about affordability, we've been focusing on inflation. But there's the income side of the story that we often do not talk about," said Andre Perry, the director of Brookings' Center for Community Uplift.

https://www.npr.org/2026/05/28/nx-s1-5836525/affordability-report-brookings-inflation-wages