The cost of living in the US is rising. How will this impact Americans, and what hard choices are they willing to make in the face of soaring living costs?
Our latest survey of 1,000 Americans shows that for most, the cost of living isn’t just high — it’s approaching unmanageable. Only 27% of survey respondents say they can easily afford their lifestyle. A majority (57%) manage with difficulty and 16% say they can’t afford their current cost of living.
Americans say they need a $105,000 salary to live comfortably
To live comfortably, respondents believe they need an average salary of $105,000 — a figure far above the national median wage. Younger generations, particularly Gen Z, report the highest perceived income need at $133,516. More than half (54%) don’t believe this salary is attainable in today’s job market.
Price sensitivity is acute: Over 70% of respondents say just a 15% increase in living costs would push them into unaffordability. Key drivers of financial strain include:
- Food (38%)
- Housing (29%)
- Healthcare (17%)
- Energy (11%)
Roughly half of respondents (52%) believe they won’t achieve the same financial security their parents had. Millennials are the least optimistic generation, with 57% doubting their potential to reach their parents' level of financial stability.
1 in 4 think tariffs will make them relocate in the next year
Tariffs loom large in the public psyche. 86% of Americans express concern that tariffs will push prices higher. 1 in 4 expect to be forced to move from their homes within the next year due to tariff-related cost increases, including a third of Gen Z.
Nearly 1 in 3 Americans are most worried about inflation heading into 2025. Inflation concerns are followed by fears of a recession, political instability, and even fascism. More than a third (34%) believe their current career path lacks a viable future in the US economy, particularly as AI threatens redundancy.
The new Plan B: Multiple jobs, new careers, or new countries
Americans aren’t just worried. They’re prepared to act:
- 30% say they’d take a second job
- 18% would look for a new job
- 10% would pivot to a more lucrative career
Mobility is also on the rise. 10% say they’re planning to move within the US — most to the suburbs, with Arizona topping the list of prospective destinations. A whopping 65% believe they’ll need to move within five years.
15% are seriously considering moving abroad
Interest in moving abroad is surging. 15% of Americans are seriously considering relocating internationally. Nearly 3 in 4 believe they’ll have to move abroad within five years to afford the life they want. Top choices include Canada, Italy, Portugal, and Thailand for affordability and quality of life.
Among Americans planning for retirement, 16% are eyeing a life overseas. Respondents cite cost savings (77%) and cultural preferences (51%) as primary reasons for wanting to retire abroad.
A growing number of Americans are embracing digital nomadism. If you're interested, check out our guides to being a digital nomad in Mexico, Uruguay, and Colombia.
48% See more economic opportunities abroad than in the US
82% of survey respondents say they enjoy living in the US. However, more than half (56%) believe other countries offer a better quality of life. Nearly half (48%) see more economic opportunity abroad.
Tellingly, 58% of survey respondents don’t believe the American Dream is possible in America anymore. 46% think it may be achievable elsewhere. 49% say they would move abroad tomorrow if they knew they could find a job.
Methodology & fair use
In May 2025, we surveyed 1,000 Americans on how the cost of living was affecting them. 49% were women, 49% men, and 2% either nonbinary or chose not to disclose, and ages ranged from 18-75 with an average age of 42.
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Fair Use
When using this data and research, please attribute by linking to this study and citing Howdy.com.