Report: Over 45% of U.S. households could not afford necessities in 2024
6 reported
A new report from the Brookings Institution, using the latest available data from 2024, found that more than 45% of American households did not earn enough to cover basic necessities. The report also found that a $1,000 increase in the yearly cost of living would push another 3 million households past that financial brink. Since 2024, the cost of living has continued to rise, including for gas and electricity. Hannah Stephens, a senior research assistant at Brookings, stated that this affordability problem has been a long-standing issue for a huge swath of Americans since at least 2014. The report highlights that major expenses like housing, healthcare, and childcare are largely determined by systems outside of a family's control. The Labor Department also reported that consumer prices in May 2026 were up 4.2% from a year ago, the highest inflation in more than three years.
What’s reported
More than 45% of American households could not afford basic necessities in 2024, according to a Brookings Institution report.
A $1,000 increase in yearly cost of living would send another 3 million households over the financial brink.
Since 2024, the cost of living has gone up, including for gas and electricity.
The report states that housing, healthcare, and childcare are the biggest budget components and are largely determined by systems outside family control.
The Labor Department reported consumer prices in May 2026 up 4.2% from a year ago, the highest inflation in more than three years.
The article features Siara Mims, a chiropractic technician in Raleigh, North Carolina, earning about $47,000 a year, who said she relies on food pantries and cannot cover all costs.
Key figures
Siara Mims, chiropractic technician in Raleigh, North Carolina
Hannah Stephens, senior research assistant at Brookings Institution
Stephan Bisaha, NPR reporter
Sources: NPR
