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As of July 23, 2025 — Americans are feeling the longest and most brutal affordability squeeze in modern history, and younger generations are bearing the brunt. For millions under 40, owning a home has become a distant fantasy. Today, only workers earning at least six figures can comfortably afford a decent house. To put it in perspective: the home that Homer Simpson lived in would now cost roughly $450,000, and the house featured on Married with Children — where the shoe salesman Al Bundy constantly complained about being poor — would be valued at about $700,000. Families considered “dirt poor” in 1987 would be considered wealthy in 2026.
This isn’t just about housing. New cars are out of reach for most, health insurance premiums have become absurd, and many grocery staples have doubled or tripled in price since the start of the decade. The cost of living has become the number one political issue in the United States, and it didn’t happen by accident. Something in the system snapped around the early 2020s, sending home prices through the roof and keeping them at ridiculous levels.
According to the National Association of Realtors (NAR), the median price of existing homes in June 2025 was $440,660 — up 1.8% from $432,700 a year ago. That marks 36 consecutive months of price increases. “Housing affordability remains low under slowing wage growth and stronger home price growth,” said Ershang Liang, an economist with PNC Economics Research. To afford a typical home without spending more than 30% of income on housing, a household needs to earn nearly $110,000 per year, according to a June 2025 Redfin report. If you don’t already own a home or earn six figures, you’re effectively locked out of the market.
Homelessness has exploded. Millions of Americans now live in their cars, and major cities have created designated parking lots where people can sleep in their vehicles overnight. “When I was growing up, I never saw anyone sleeping in a car because they had no home,” said one observer. Today, that’s a common sight from Seattle to Miami.
Car ownership is just as punishing. The average new vehicle transaction price hit $49,353 in February 2025, a 3.4% jump from the previous year, according to Kelley Blue Book. In 1987, the average domestic car cost about $12,906, and imports averaged $14,459. But a car is only the beginning. Insurance, repairs, and maintenance add thousands more. According to Zero Hedge, the typical household in Louisiana now spends 23.2% of its income — $14,894 annually — on vehicle expenses, making it the least affordable state for car ownership.
Grocery prices have become a major pain point. A June 2025 report from the McKinsey Institute for Economic Mobility and the W.K. Kellogg Foundation surveyed 30,000 Americans and found that 90% cited groceries and food prices as a top cost concern — even ahead of housing and healthcare. “We face a common challenge, and that is the rising cost of living,” said John-Paul Julien, a partner at McKinsey. “Although people are experiencing the economy differently, there is this shared feeling that rising costs are making it difficult to get ahead.”
Back in the late 1980s, a three-bedroom home, two cars in the driveway, and plenty of food were considered markers of being “poor.” Today, having all three would make you wealthy. The standard of living has been declining for decades, and more Americans are falling out of the middle class every day. As Michael Snyder notes in his book 10 Prophetic Events That Are Coming Next, the gap between perception and reality has never been wider.
With interest rates still elevated and supply constrained, housing affordability is unlikely to improve soon. Policymakers are under pressure to address the crisis, but no quick fix is in sight. For now, the dream of a middle-class lifestyle — a home, a car, and affordable groceries — remains out of reach for millions.
This article was updated on July 23, 2025, with the latest available data.
