Many Americans are struggling with rising food prices and high costs for housing, health care, and child care, but there is not a widespread “affordability crisis” in the US.

Affordability has been an issue for years, and inflation is still high, but real income growth is positive for most Americans, suggesting that income is rising to cover many increasing costs.

Affordability has been an issue for years, but it became an acute problem when inflation spiked after the pandemic and there was a drop in real income.

Another big expense facing Americans is housing. In urban areas, the rental value of a primary residence has increased nearly 30% since 2020, and higher interest rates on mortgages have made it harder for a lot of people to buy a home. But about two-thirds of American households are already homeowners, and about half of outstanding mortgages have a fixed interest rate that is less than 4%.

Yes, these conditions make it harder for these families to move, and it is more expensive for everyone who is not a homeowner. Yet it’s difficult to argue that most households can’t afford the cost of housing.

What about the cost of food? Food prices are up 27% since 2020 and are still rising about 3% a year. For lower-income Americans, this is a real burden and helps explain why their real incomes have fallen or are flat.

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