US affordability crisis squeezes groceries, homes, care and power bills
Inflation has cooled, but data cited by CBS News shows Americans are still being hit by higher costs for everyday essentials.
By Sal Moretti · Money Reporter
3 min read
The US affordability crisis is still biting hard even as inflation has fallen far below its post-pandemic peak, with CBS News pointing to mounting costs in groceries, housing, child care, health care and utilities.
The Consumer Price Index reached 9.1% in June 2022, a 40-year high. Price growth has since cooled, but CBS News reported that many households remain under pressure because the total cost of essentials is still well above where it stood several years ago.
An October CBS News poll found that inflation and the economy are now Americans’ top national concerns. Jeremy Tolbert, a 47-year-old web developer in Lawrence, Kansas, told CBS News his family is preparing to cut back elsewhere because monthly health care premiums are set to rise 18% to $2,600 next year.
Why is the US facing an affordability crisis?
The squeeze comes from both older problems and newer price shocks. CBS News cited a housing shortage tied to reduced construction after the Great Recession, while also noting that recent U.S. tariffs have contributed to inflation.
For households, the issue is less about whether inflation is rising as fast as it did in 2022 and more about the bill at the register, the rent payment, the insurance premium and the power charge landing each month.
Groceries are still testing shoppers
Nearly half of Americans said groceries are harder to afford than a year earlier, according to a September survey by Axios and the Harris Poll cited by CBS News. Only 19% said food had become cheaper, while about a third saw no change.
The latest CPI report showed grocery prices up 2.7% in September from a year earlier, far below the 11.4% increase recorded in 2022. Even so, CBS News’ price tracker found food prices in September were more than 18% higher than in January 2022.
Purdue University’s Center for Food Demand Analysis and Sustainability found that about 14% of U.S. households reported food insecurity on average from January through October, up from 12.5% in 2024. In New York City, Robin Hood and Columbia University data found 40% of families could not afford weekly food costs.
Housing, child care and health bills keep climbing
Nearly three-quarters of Americans said housing has become less affordable in their communities, according to an October YouGov and University of Florida Center for Public Interest Communications poll. The Federal Reserve Bank of Atlanta estimated a buyer now needs $121,400 a year to afford a typical home, while the average American earns about $84,000.
Goldman Sachs has estimated that the U.S. would need as many as 4 million additional homes beyond current construction levels to meet demand. CBS News also noted that pandemic-era mortgage rates below 3% helped drive a buying rush, and homes are still selling for about 25% more than in 2019.
Child Care Aware America said the average annual cost of care for one child topped $13,000 in 2024, up 30% from 2020. The Department of Labor found families with one child can spend roughly 9% to 16% of median income on full-time day care.
Health care is another pressure point. Mercer attributed rising medical costs partly to pricier treatments, including GLP-1 weight loss drugs, and an aging population. KFF estimated that if enhanced Affordable Care Act subsidies expire, qualifying households’ average premiums would rise from $888 in 2025 to $1,904 in 2026.
Utility bills are rising too. The Century Foundation and Protect Borrowers reported that Americans now pay an average of $265 a month for utilities, up 12% from last year. PowerLines found more than 124 million Americans are expected to see some type of energy rate increase in 2025.
This story draws on original reporting from CBS News.