Many people in the United States now feel that being middle class depends on having money left after paying all their bills, not just on how much they earn. In big cities like New York, San Francisco, and Los Angeles, the cost of living is much higher than in small towns, making it harder for families to feel secure. The biggest problem is often the cost of housing, as home prices have gone up a lot since 2020 and many families now spend more than 30% of what they make on their homes.

This situation happened mainly because housing costs, including not just rent or mortgage but also things like electricity, insurance, and repairs, have increased faster than salaries. It is hard for many families to save any money when their monthly expenses are so high.

Because of these high costs, many Americans now struggle to save for emergencies or later in life, like retirement. This means that even people with good jobs may not feel comfortable or safe financially, as they often have little money left over for savings, holidays, or other enjoyable activities.