More than nine months into his second term, President Donald Trump is struggling to deliver on a key campaign promise: making life more affordable.
That’s not criticism from a political adversary but an admission from a fellow Republican, Rep. Marjorie Taylor Greene.
“Prices have not come down at all,” Greene said on the The Tim Dillon Show. (1) “The job market is extremely difficult. Wages have not gone up. Health insurance is going up. Home insurance goes up. Rent is going up. Young people have no hope of buying a home.”
There’s data to back up many of her concerns. In fact, some key affordability metrics show the situation may be worsening rather than improving or even stabilizing. Here’s a closer look at the persistent squeeze that many Americans, particularly younger ones, face.
Ordinary Americans continue to face a persistent affordability crisis. As of August, the consumer price index rose 2.9% over the past 12 months, according to the U.S. Bureau of Labor Statistics (BLS). (2) That means prices are going up faster than the Federal Reserve’s 2% target. (3)
Trump’s ongoing and volatile trade war has added another layer. As of October, consumers face an average effective tariff rate of 18%, according to the Yale Budget Lab. (4) Goldman Sachs analysis suggests businesses are currently absorbing much of this cost, but consumers could eventually shoulder 67% of tariff costs over time. (5)
Meanwhile, rent and mortgage payments are going up faster than inflation. In August, housing costs rose 3.6% over the past 12 months, BLS date shows. As of mid-2025, house price-to-income ratio is at an all-time high, and Americans need an income of $104,000 at least to afford a median-priced home, according to CBRE. (6)
In the midst of rising prices, wages are barely keeping up. The Atlanta Federal Reserve tracker found that three-month rolling wage growth in August 2025 was 4.1% — well below the 6.7% growth recorded in August 2022 under the Joe Biden administration. (7)
Feeling the squeeze, many consumers are preparing to tighten their belts. About 83% of adults said they will strongly consider slashing their budget for non-essential items in the months ahead because of ongoing trade tensions, according to a survey by Intuit Credit Karma. (8) Younger Americans, including Gen Z and millennials, were the most likely to say so.
