world-economy

Nearly Half of U.S. Households Unable to Cover Basic Necessities, Brookings Study Finds

A new Brookings Institution study released Wednesday reveals that 45% of American households lack sufficient income to cover essential expenses. The research examined household income data across every U.S. county and compared those figures against estimated costs for necessities including food, transportation, housing, healthcare and childcare. National wages grew just 1.3% in 2024, while inflation reached 2.9% that same year, according to the Census Bureau. The report warns that a modest $1,000 annual increase in living costs would push another 3 million households below the financial threshold. Researchers emphasize that addressing affordability requires focusing on income growth alongside inflation concerns, particularly targeting structural cost pressures in housing, healthcare and childcare.