Last weekend, when I went grocery shopping and had to part with a chunk of money, it suddenly hit me how expensive everything is getting. I mean, you work your back off every day to earn money, and then you lose half of it purchasing regular things. Sounds unfair, doesn’t it?
Nobody bears the brunt of it more than the middle class, because regular things are getting unaffordable for them in the US, as revealed by Yahoo Finance and Epic Economist. The regular things that make up this pricey list might even shock you, so just scroll down and check it out!
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#1 Miss A Paycheck
Between 1979 and 2024, productivity in the U.S. soared by 80.9%, while hourly pay grew by just 29.4%. This wage stagnation makes it harder for middle-class Americans to keep up with the rising inflation, and missing a paycheck can be disastrous for those who live paycheck-to-paycheck.
Image credits: Epic Economist
#2 Healthcare
The United States has one of the highest costs of healthcare in the world. In 2022, U.S. healthcare spending reached $4.5 trillion, which averages to $13,493 per person. Moreover, 26 million Americans, or 8 percent of the U.S. population, lacked health insurance in 2023. This further adds to an unhealthy lifestyle suffered by these people
Image credits: Epic Economist
#3 Retirement Savings
Retirement is increasingly becoming a luxury many American workers cannot afford. With rising housing costs and medical expenses, millions of older Americans can’t stop working. The sad truth is that only 40 percent of men who are regularly saving for retirement believe they are saving enough. Unfortunately, for women, the number is only 30 percent.
Image credits: Epic Economist
As you scroll through the list, you will realize that some of these things are quite essential to lead a healthy and satisfied life for the middle class. To get a deeper understanding of the rising cost of these daily things, Bored Panda got in touch with Madhura, who was a student of economics and also has over 2 years of experience working in the financial sector.
She explained that the increasing unaffordability of goods and services for the middle class in the USA is primarily driven by inflation, wage stagnation, and rising housing costs. Inflation, as per her, has significantly increased the prices of essential goods and services, while wage growth has not kept pace, leading to diminished purchasing power.
“Additionally, housing costs have surged, making it increasingly difficult for middle-class families to afford homes and maintain their standard of living. Tariffs have also led to higher consumer prices as businesses pass on the costs of imported goods to consumers,” Madhura added.
#4 Emergency Savings
Financial experts generally suggest setting aside three to six months’ worth of your living expenses in an emergency fund. However, nearly 37% of Americans say they couldn’t afford an emergency expense over $400, and shockingly enough, 21% of people have no emergency savings at all.
Image credits: Epic Economist
#5 Homeownership And Real Estate
The average United States home value is $357,469, which increased a whopping 2.5% over the past year. This has also impacted the age of home buyers. The average age of first-time homebuyers has increased to around 33 years, reflecting the challenges younger generations face in affording homes due to rising prices and stagnant wages.
Image credits: Cindy Lamothe
#6 Child Care
While the cost of child care varies depending on several factors, the average cost of child care in the United States was $11,582, in 2023. This is a nearly 250% increase from 1991. Considering wage stagnation and the cost of hospitalization for delivery, younger people are hesitating to have kids.
Image credits: Epic Economist
Madhura elaborated that inflation has significantly raised living costs, with essential goods becoming more expensive. Meanwhile, she mentioned, wage growth has not kept pace with inflation.
“Average hourly earnings have decreased when adjusted for inflation, making it increasingly difficult for families to maintain their standard of living. Housing prices have surged, with many areas experiencing increases that outweigh wage growth,” our expert claimed.
#7 Going To The Dentist
A simple task like maintaining good dental health has become challenging as 80% of Americans delay dental care knowing that it will cost them more in the long term. It might be because of this negligence that the oral health of American working-age adults has not improved over the past 20 years.
Image credits: Epic Economist
#8 New Vehicles
The average price of a new vehicle in the United States in 2023 was around $47,010, which was about 1.6% higher than in 2022. In addition to the purchase price, other expenses like registration, repairs, and insurance also impact the overall budget. Considering the fact that the average salary in the USA is $68,124 per year, it becomes challenging for middle-class families to own a car.
Image credits: Itsnottreasonyet
#9 Marriage
Gone are the days when regular people could afford big traditional weddings as the average cost of a wedding in the United States in 2024 was around $33,000, a slight increase from the previous year's $29,000. This spiked cost has not only affected the number of guests getting invited, but the marriage rate has also declined.
Image credits: Epic Economist
Our expert believes that the growing wealth gap adversely affects the purchasing power of the middle class by concentrating resources among the wealthy while leaving many families struggling to afford basic necessities.
“The wage gap between CEOs and average employees has widened significantly; for instance, CEO compensation has increased dramatically over the years compared to stagnant wages for typical workers. This disparity limits economic mobility and restricts access to resources necessary for investment in education and healthcare,” Madura noted.
#10 Everyday Expenses
The everyday expenses like utilities, groceries, travel, etc. also take a hit for the middle-class folk as the inflation keeps rising. The average annual cost of living for a single person is $44,312, which eats up most of their salary, leaving little space for savings.
Image credits: Epic Economist
#11 Eating Healthy Foods
The cost of eating healthy food averages $1000 to $1200 per month, and as the middle class is unable to afford it, they look for cheaper alternatives, consuming unhealthy food. This leads to an unhealthy lifestyle, which puts people in a vicious cycle of unaffordability of healthcare and good food.
Image credits: Epic Economist
#12 Brand Name Items
The sale of branded items in the US has decreased, particularly luxury goods. There's a shift in consumer behavior as sales of private-label brands have increased owning to the fact that consumers have become more budget-conscious.
Image credits: Epic Economist
Madhura also raised some major concerns about the lasting consequences that the unaffordability of higher education or healthcare can have on the middle class. “In the USA, quality healthcare and education are predominantly private, which can lead to significant financial burdens on families who must pay out-of-pocket expenses or incur debt for services that should be accessible,” she added.
Madhura stressed that this situation may hinder upward mobility and increase economic inequality. She claimed that with quality healthcare and education largely privatized, families face substantial financial burdens that can lead to significant debt, creating a cycle that strains their financial stability and overall quality of life.
#13 Holiday Gifts
The problem of inflation is also taking away the joy of the festive season as people can't afford the overpriced goods. Americans spend an average of $900 to $997.73 per person on holiday gifts each year, and many folks hesitated to spend so much this year.
Image credits: Epic Economist
#14 Vacations
Image credits: Epic Economist
#15 Movie Tickets
Movie ticket prices in the United States have been increasing over the years. In fact, the average price of a movie ticket rose from $9.16 in 2019 to $10.53 in 2022. This has significantly reduced movie theater attendance, and the trend is expected to continue with the rise in OTT platforms.
Image credits: Epic Economist
When we enquired whether there are any effective policies or interventions that could stabilize or reverse this trend, Madhura shared some wise words:
“To address these issues, potential policies could include raising the minimum wage to match living costs, implementing rent control measures to manage housing affordability, and expanding access to affordable healthcare and education. Additionally, reducing or eliminating tariffs could help lower consumer prices and enhance purchasing power for middle-class families.”
Well, even if there seems to be a solution in tow, implementing it can take ages, and we can never know how high the prices might have surged till then. All the middle-class folks can do is hope that things get better, or it might get completely dire for them. What are your thoughts about how this issue should be addressed? Let us know in the comments!
#16 Extended Family Trips
With a surge in travel costs, airfares, lodging, recreation, and food and beverages, nearly 69% of American adults are changing their plans because of inflation. This has also urged them to plan shorter trips in order to avoid splurging on these trips.
Image credits: Cindy Lamothe
#17 Leisure And Travel In Retirement
Considering the fact that saving after retirement has become a big challenge for the working class, leisure and travel have become a luxury that very few can afford.
Image credits: Cindy Lamothe
#18 Divorce
Although the average cost of a divorce in the United States can vary greatly depending on the complexity of the case, its location, and whether the divorce is contested or uncontested, the average cost is around $11,300 per spouse. Despite the increasing amount, divorce stats are also increasing, however, it might prove difficult in the near future.
Image credits: Epic Economist
#19 Taking Sick Days
Sadly, working people are not prioritizing their health as they are forced to work even when they are sick. Currently, there is no federal sick leave law, however, some states do provide mandated sick pay.
Image credits: Epic Economist
#20 Live Entertainment
Due to the rising production costs, staging a live event has risen by around 30% in recent years. This has resulted in the shift of consumer behavior as nearly 60% of consumers have skipped a live event they would have liked to attend in the last year due to high costs.
Image credits: Epic Economist
#21 Heat Their Homes This Winter
Owning to the colder temperatures in the Midwest and Northeast, heating homes is a necessity that folks need. Unfortunately, consumers who heat with electricity are expected to see the biggest increase in costs, with an estimated 13.6% rise to $1,208. Meanwhile, heating with propane, natural gas, and oil is also expected to see an increase in cost.
Image credits: Epic Economist
#22 Debt
Although people can't afford to fall into debt, the middle class is drowning in household debt, student loans, and even credit card delinquency. In fact, the average personal debt per individual grew from $21,800 in 2023 to $22,713 in 2024.
Image credits: Epic Economist
#23 Go To College
College tuition in the United States has increased significantly over the last few decades, even after adjusting for inflation. Tuition rates at private National Universities increased by 4.2%, while in-state and out-of-state tuition and fees at public National Universities increased by 4.4% and 3%. This rising cost of tuition fees and the inability to pay off student loans has reduced the number of students pursuing higher education.
Image credits: Epic Economist
