Cost of living feels unaffordable beyond inflation
Archived — this story has rotated out of today’s deck. It is kept here in full.
The gist
A Chicago-suburb four-bedroom house sold for almost double its inflation-adjusted 1986 price, while median household income rose by less than half.
Voter anger over affordability is shaping the 2026 midterms and the next presidential race.
Background
Affordability — whether ordinary Americans can cover basic costs — has become a central US political issue. Economists cited by The New York Times argue life is more affordable than ever by their measures, with wages far higher and many goods cheaper than 40 years ago, but polls and reporting show many households feel worse off. The debate now centers on President Donald Trump, who promised to lower prices on Day 1 and has dismissed "affordability" as a Democratic "hoax," while voters' frustration persists.
How it unfolded
- 1984A Van Halen concert ticket cost $13.50, about $45 in today's dollars.
- 1987The median age of a first-time home buyer was 29, and a year of family health-plan premiums cost a stated average.
- 2025Average annual family health-plan premiums and weekly day-care costs were recorded; last-minute Super Bowl tickets fell to $2,300 the morning of the game.
- 2026A four-bedroom house in a Chicago suburb sold for almost double its inflation-adjusted 1986 price, while median household income after inflation was up by less than half.
- Oct 18, 2026POLITICO reported a majority of Americans say basic staples became more unaffordable after Trump returned to office, citing its polling; New York Fed data showed a growing share of households say their finances are worse than a year ago.
- Oct 21, 2026A New York Times guest essay said gas likely costs more than $4 a gallon and home prices are up over 50 percent since the pandemic; a separate NYT interactive said affordability is expected to be a major issue for younger voters in the midterms.
Who’s saying what
- Economists
- Overall life is more affordable now, with wages far higher and many basic goods cheaper than 40 years ago, and median household income reached a high last year.
- Expert
- Former Obama adviser Betsey Stevenson says economists find "affordability" almost nonsensical: "You can afford anything. The question is just: What do you have to give up to get it?"
- Analysts
- Harvard professor Jason Furman described the gap between public perception and economic fundamentals as "misery amidst splendor."
- Official
- President Trump promised to lower prices on Day 1 and has dismissed "affordability" as a Democratic "hoax."
- Party
- New York Mayor Zohran Mamdani froze the rent, while North Carolina Senate candidate Roy Cooper campaigns to "make stuff cost less" and Iowa's Ashley Hinson wants to help families being "squeezed."
Still unverified
The New York Times interactive's price comparisons are presented with some dollar figures missing from the source text, so exact amounts cannot be verified from the excerpt.