U.S. adults see cost pressures pushing American Dream out of reach for most

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Cost pressures and the American Dream

Highlights

CNBC's American Dream Pulse Survey finds over 50% of Americans believe the American Dream is out of reach for most, mainly due to affordability pressures.
About 80% of respondents single out cost of living as the biggest financial barrier, with 60% citing housing prices and nearly 50% blaming healthcare costs.
A December Marist poll reports 70% of Americans deem local cost of living unaffordable, reflecting persistent economic pessimism despite eased inflation and moderate job data.

Survey findings on affordability pressures

As reported by CNBC, its American Dream Pulse Survey with SurveyMonkey shows just over half of Americans say the American Dream is out of reach for most people right now. About 45% of respondents say it is achievable only for some people, while 6% say it is not in reach for anyone.

Cost of living stands out as the biggest financial hurdle in the survey, cited by roughly four in five respondents. Housing prices are named by three in five, while nearly half point to healthcare costs and almost as many blame low wages.

The survey also shows broad agreement on what defines the American Dream. Financial stability ranks first at 72%, followed by owning a home at 58%, being happy at 54% and having the freedom to pursue passions at 51%.

Broader economic sentiment and social implications

Elizabeth Suhay, a professor of government at American University and author of “Debating the American Dream: How Explanations for Inequality Polarize Politics,” says optimism about the concept has generally declined over recent decades. She says Americans are now less likely than in earlier periods to view the economy as meritocratic, fair, or capable of rewarding a typical hardworking person with upward mobility.

Suhay says the gap between earnings and everyday costs is feeding the growing pessimism. Although inflation has cooled from its 2022 highs, it has remained above the Federal Reserve’s 2% target since 2021, while gas, food and energy prices continue to weigh on consumers.

A separate Marist poll of 1,400 adults in December found 70% of Americans say the cost of living in their area is not very affordable or not affordable at all. Even with some weakening in unemployment and inflation data, the survey suggests persistent affordability strains are shaping how households assess economic opportunity in the U.S.

Our earlier coverage of rent-split lending highlighted how rising housing costs and uneven income growth are pushing more U.S. renters toward short-term credit to manage monthly payments. We described how fintechs such as Affirm and specialized providers are expanding these installment-style rent products, while warning that fees and higher borrowing costs can add risk for cash-strapped households with limited emergency savings.

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