Why It Matters
Rising prices are becoming a central issue for Americans before November’s midterm elections, with households facing higher costs for healthcare, gasoline, groceries, housing and childcare.
Gas and electricity prices are increasing faster than paychecks, while financial pressure is reaching middle-income earners as well as families with the lowest incomes.
What Happened
An Urban Institute analysis examined changes in food, housing, energy and healthcare costs across all 50 states. The analysis estimated that 49% of families cannot afford basic living expenses.
Gregory Acs, who discussed the findings, said the figure measures financial security rather than poverty. “We’re not saying that 49% of people are poor. We’re saying that they’re not secure,” Acs said.
Housing, grocery and healthcare costs are rising faster than the national average in Atlanta, Louisville, Kentucky, and Rochester, New York.
Gas prices have increased 33% since January 2025, an average rise of $1.02 per gallon. The average benchmark Affordable Care Act Marketplace premium has climbed 22% since last year to $611 per month.
By the Numbers
- 49% of families are estimated to lack enough income for basic living costs.
- $6,600 has been added to average annual childcare costs for two young children over the past decade.
- 33% is the reported increase in gas prices since January 2025.
- $611 is the current average monthly benchmark Marketplace premium.
- 1,171 businesses were included in a survey of small employers.
Political Pressure
Republicans control the White House, both chambers of Congress, most state legislatures and a majority of governor’s offices. Todd Belt said President Donald Trump’s economic promises have not been fulfilled.
Trump has called affordability concerns “a hoax” and blamed former President Joe Biden for rising prices. Vice President JD Vance acknowledged frustration over high costs during a town hall in Michigan earlier this month.
Zohran Mamdani’s winning campaign promised free bus service and childcare, putting household expenses at the center of its platform.
Small-Business Costs
Small employers reported higher expenses for utilities, fuel, business supplies and employee healthcare. Nearly two-thirds of surveyed business owners said they had recently reduced or skipped their own pay.
Nearly half reported substantially lower customer spending, while more than two-thirds said they had delayed, canceled or reduced investments.
Walt Rowen, whose Susquehanna Glass Company is 116 years old, said tariffs disrupted supply chains and increased heating-oil costs. “Heating my factory in this current economy is some of the hardest math I’ve ever had to do,” Rowen said, adding that he expects the company’s winter heating bill to rise 30% to 40%.
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