87% of Americans say we are in a cost-of-living crisis. The data backs them up.

It’s not just you. Nearly nine in 10 Americans say the country is in a cost-of-living crisis — and half can’t keep up with basic bills.

A research from Talker Research A Current-commissioned survey of 5,000 Americans across all fifty states between December 2025 and January 2026 found that the affordability crunch is now the defining financial reality for most Americans.

The numbers tell the story

According to the questionnaire:

• 78% said “everything” would become more expensive by 2025
• 46% I believe things will become even less affordable in 2026
• 52% difficulty paying bills such as rent on time every month
• 50% cannot afford necessities such as groceries
• 38% moved because the place where they lived became too expensive

Younger generations are hit the hardest

The generation gap is striking:

If half of Americans can’t afford groceries, we’re not talking about financial irresponsibility. We’re talking about math that doesn’t work.–Steve Rhode

Tax refunds as a lifeline

Half of respondents expect a tax refund, and the data shows how crucial that money has become:

• 73% say they need their refunds more than ever
• 60% need it sooner than previous years
• 58% expect their refund to be at least $2,100

Where they want to spend it:

The affordability map

The study found dramatic differences in affordability by state:

• Most Affordable States: Mississippi (62% say affordable), Alabama (61%), Oklahoma (60%)
• Least affordable states: Hawaii (only 12% say affordable), Alaska (14%), Colorado (14%)

What this means for people with debt

If the cost of living exceeds your income, no amount of budgeting will close the gap. Here’s what you can actually do:

• Check the math: Keep track of what you actually spend (not what you plan to spend) for 30 days.
• Prioritize ruthlessly: Housing, food, utilities, transportation. Everything else is secondary
• Don’t let your pension run dry: Never cash out a 401(k) to cover the cost of living gap – the taxes and penalties make it worse
• Discover all options: If the math really doesn’t add up, look at ALL your options, not just the ones that feel comfortable

(Source: Talker Research / Current Research, 5,000 Americans, December 2025 – January 2026)

Frequently asked questions

How many Americans think there is a cost of living crisis?

According to a survey of 5,000 Americans by Talker Research (December 2025 – January 2026), 87% believe the US is in a full-blown cost of living crisis. About 78% say everything will become more expensive by 2025, and 46% expect it to get worse by 2026.

What percentage of Americans struggle with basic bills?

The survey found that 52% struggle to pay bills such as rent on time each month, and 50% say they cannot afford necessities such as groceries. These numbers are consistent across most demographic groups, although younger generations report even higher rates of financial stress.

What do Americans do with their tax refunds?

Of the 50% who expect repayments, the most used are necessities (27%), savings and investments (24%) and paying off debt (24%). Only 14% plan to use their refund for discretionary expenses such as vacations. 73% say they need their refund more than ever.

Which states are the most and least affordable?

Mississippi (62%), Alabama (61%) and Oklahoma (60%) were rated the most affordable. Hawaii (12%), Alaska (14%) and Colorado (14%) were rated as least affordable. 38% of respondents moved because their area became too expensive.