Affordability has become a defining economic concern in the United States, yet the term itself remains difficult to pin down. At its core, affordability reflects the balance between what people earn and what they aspire to buy — a balance that is increasingly under strain.
Every household operates within its own economic reality, shaped by income, savings, debt and expectations of lifestyle. When financial resources are sufficient to support those expectations, life feels manageable. When they are not, confidence can quickly erode.
This tension has become more pronounced in recent years. For many Americans, the cost of achieving long-held goals has risen faster than wages and household wealth. Housing, often described as the centrepiece of the “American Dream”, is the most visible example, but similar pressures are evident across healthcare, education and everyday expenses.
One reason for the disconnect lies in how inflation is measured. The Consumer Price Index (CPI), the most widely cited gauge, tracks price changes for a standardised basket of goods and services. However, spending patterns vary widely, meaning the official inflation rate may bear little resemblance to an individual household’s experience.
Even the US Bureau of Labor Statistics acknowledges the limits of the CPI. It is not designed to capture the full cost of living, excluding broader factors such as public safety, education quality, healthcare outcomes, environmental conditions and crime. These elements, while difficult to quantify, play a significant role in how people assess their financial wellbeing.
As a result, official data showing easing inflation may conflict with how consumers feel in practice. When people are told conditions are improving but their own circumstances suggest otherwise, trust in economic messaging can weaken.
This gap between statistics and lived experience appears to be weighing on public sentiment. The latest Consumer Confidence Index has fallen to its lowest level in more than a decade, reflecting growing unease about household finances and future prospects.
Understanding affordability, economists say, requires looking beyond headline numbers to the realities shaping everyday life.
