9 In 10 Americans Believe U.S. In Full-Blown ‘Cost-Of-Living Crisis’
Rent is due. The electric bill sits on the counter. The grocery receipt from last week still stings. For half of Americans, keeping up with basic monthly bills has become nearly impossible.
A nationwide survey of 5,000 Americans from Talker Research reports 52% now struggle to pay bills like rent on time each month, while an equal number are struggling to afford necessities like groceries. Nine in 10 people believe the U.S. is experiencing a full-blown cost-of-living crisis, and nearly eight in 10 said everything became more expensive in 2025.
The question isn’t whether Americans are struggling. It’s what they’re doing about it.
Tax Refunds Have Become Survival Money
What used to be bonus money for a vacation or a splurge has become the difference between making it through the month or not.
Half of respondents said they expect a tax refund this year, and among those, 73% admitted they need it more than ever before. Six in 10 said they need their refund earlier than usual just to stay afloat. The desperation shows up most clearly among younger Americans, where 74% of Gen Z expecting refunds said they need the money earlier than ever, compared to just 34% of baby boomers. That gap tells a story about which generation has any financial cushion left.
Where the money goes tells a similar story. Nearly three in 10 people plan to use the refund money on necessities like groceries and gas. Another quarter will put it toward savings or paying down debt. Only 14% said they’d spend the refund money on anything fun.
Think about that for a moment. When tax refunds stop feeling like extra money and start functioning as a financial backstop, something fundamental has shifted about what it means to get by in America.
“Tax refunds are often the biggest checks many Americans receive each year, and now more than ever, they are a critical source of liquidity that people are not only counting on, but need earlier than ever,” said Erin Bruehl, VP of Communications at Current.com, which commissioned the study. “They’ve become lifelines to pay down debt and avoid missed payments and late fees.”
When Home Becomes Unaffordable
The cost crisis isn’t just making people broke. It’s making them homeless in a different sense, forcing them to abandon places that used to feel like theirs.
More than a third of respondents have already moved because where they were living became too expensive. About a third of those relocated to a different city, while another third left their state entirely, searching for someplace they could actually afford. Half of Gen Z respondents reported moving due to costs, compared to just 19% of baby boomers.
What’s worse is how many Americans have stopped dreaming. About half of all respondents don’t believe they’ll ever be able to afford living in their “ideal” city or state. Among Gen Z, nearly two-thirds have abandoned hope of affording their ideal city. That’s not just about housing markets or inflation. That’s about an entire generation learning to aim lower because aiming higher feels pointless.
The geography of affordability matches expectations. Coastal states and mountain resort areas rank as largely out of reach, with Hawaii, Alaska, and Colorado at the bottom. California, New York, and Illinois aren’t far behind. Meanwhile, Southern and Midwestern states dominate the affordable rankings, with Mississippi, Alabama, and Oklahoma at the top.
But “affordable” is relative. Even in the states people rated as most affordable, only about six in 10 respondents said they could actually manage the cost of living there. That means even in the cheapest parts of America, four in 10 people look at the prices and think: not for me.
The New American Math
The numbers in this survey don’t just describe a financial crisis. They describe a psychological one.
When half the country can’t reliably pay monthly bills, when nine out of 10 people agree there’s a crisis, when an entire generation has given up on living where they want to live, that’s not a temporary rough patch. That’s a recalibration of what counts as normal.
Consider what it means that tax refunds have transformed from windfalls into emergency funds. Or that being able to spend 11% of a windfall on something fun now counts as privileged. Or that “affordable” states still feel out of reach to 40% of people. These aren’t just statistics about money. They’re statistics about hope, or the lack of it.
The survey was commissioned by Current and conducted by Talker Research between December 2025 and January 2026. It captured Americans at a specific moment, but for many Americans, this no longer feels like a temporary rough patch. This is where we are now. The American promise used to include the idea that hard work could get you somewhere. Now it just might keep you from falling further behind.
No concept is more deeply woven into the fabric of the United States than the American Dream. As the nation approaches its 250th anniversary in July 2026, it is an opportune moment to critically evaluate an idea that is fundamental to the country’s self-conception.
While the phrase "American Dream" was popularized by historian James Truslow Adams in the 1930s, the ideal dates back to the earliest colonial days. From the metaphor of a "city on a hill" to the Declaration of Independence’s promise of "life, liberty, and the pursuit of happiness," America has long been viewed as a destination where hopes—both individual and collective—can be realized. This concept remains omnipresent today, visible everywhere from television commercials to political discourse, and even embodied in the new $500 million Milken Center for Advancing the American Dream in Washington, D.C.
To understand how this ideal is perceived in the 21st century, I conducted interviews with a diverse cross-section of Americans, ranging from individuals living on the streets to billionaire entrepreneurs. My goal was to determine how the American Dream is currently defined and whether it remains within reach for the average citizen.
My research revealed that, for most people, the Dream rests on three pillars:
1. **The Economic Bargain:** The belief that hard work and playing by the rules should result in financial security. This includes the ability to own a home, raise a family, and retire comfortably.
2. **Hope and Optimism:** A faith in personal progress and the conviction that the nation’s best days are ahead. Central to this is the expectation of upward economic mobility, ensuring that each generation surpasses the success of the one before it.
3. **Freedom:** The liberty to pursue one’s aspirations and reach full potential. This rugged individualism is often viewed as the epitome of the American experience.
However, when assessing the attainability of these goals, the outlook is troubling. On an economic level, the "bargain" has become increasingly difficult to uphold. Census data shows that median wages for full-time male workers have barely budged since 1973. As the economy has shifted from manufacturing to services, many available jobs are low-wage, part-time positions lacking benefits like health insurance. Meanwhile, the costs of housing, healthcare, childcare, and education have soared over the last four decades, causing less-skilled workers to lose financial ground.
Furthermore, the once-assured trajectory of generational progress has stalled. Historically, younger generations could expect to earn more than their parents; today, that trend has reversed. Upward mobility for lower-income workers has slowed significantly, making the "ladder of opportunity" harder to climb.
Finally, the sense of personal freedom—the third pillar of the Dream—has also diminished. For over two decades, Gallup has polled Americans on their satisfaction with their "freedom to choose what you do with your life." The results show a marked decline: satisfaction dropped from 87% in 2007 to 72% in 2024. The drop is even steeper for women, falling to 66%. Notably, the average satisfaction rate among the world’s wealthiest countries is 86%, suggesting the U.S. is falling behind its peers.
These trends help explain the polarization and negativity currently plaguing the country. For many who feel left behind, the American Dream feels like a delusion. As the late George Carlin famously joked, "It’s called the American Dream because you have to be asleep to believe it."
Despite these challenges, the American Dream remains a powerful metaphor and a vital source of inspiration. It represents the best of what the nation aspires to be. As the U.S. embarks on its next 250 years, restoring the reality of this dream for the millions who have been left behind may be essential to preserving the core promise of America.