As the Iran war spills over into everyday life, more Americans say they are worse off today than at most any point in the last 25 years.
More than half – 55% – say their financial situation is deteriorating, according to a new Gallup poll. While that figure is similar to the slumping sentiment Gallup registered last year, the ranks of the disaffected have grown. Only 47% of Americans were pessimistic about the economy in 2024.
This poll also marks the fifth straight year that Americans complained things are getting worse, not better. The only time the national mood plunged this low was during the Great Recession.
Financial worries are coming to the fore amid the Iran war and ahead of the November midterm elections, putting pressure on President Donald Trump and Republicans. A recent Reuters/Ipsos poll found that Trump’s approval rating has slipped to the lowest level of his second term, with just 34% of Americans seeing him as a good steward of the economy.
Inflation is lower than its peak in 2022 – so what’s keeping Americans up at night? They are struggling with a superfecta of financial headaches: years of stubbornly higher prices, a recent surge in gas prices, and rising costs of housing and healthcare. Four in 10 Americans are worried about how they will pay their monthly bills, and there has been an 11-point rise in those concerned about making minimum credit card payments, Gallup said.
‘Battle with Affordability’
Nearly a third of Americans cited the high cost of living as their most pressing financial problem. While that figure is below its peak of 41% in 2024, it’s still among the highest Gallup has recorded in decades.
College expenses, transportation costs, and childcare are all adding up. Prices are up: the Consumer Price Index was 3.3% higher in March than a year ago. Food prices in particular have been on the rise, with many common grocery staples continuing to climb.
“Inflation rose steadily in 2021, from 1.4% in January to 7% by December, and peaked at 9.1% in June 2022,” Gallup noted. “It has since retreated, registering under 3% for most months since early 2025 — yet it has not consistently returned to the sub-3% range typical of the decade before 2021, something consumers may be anticipating.”
“My whole life has been the battle with affordability,” said Ray Gomez Jr., 67, of Covina, California. “This feels like everything all at once. I feel no hope.”
Housing: The Second-Biggest Concern
Housing is slipping out of reach for many Americans. Among renters, 50% are considered “cost-burdened,” meaning they spend more than 30% of their income on housing and utilities. That includes the 27% who spend more than half their income on those expenses.
The median-priced home is now five times the median household income — well above the traditional three-times rule of thumb for affordability. The only other time the ratio was this high was in 2005, at the height of the subprime bubble.
Property taxes rose 15% from 2019 to 2024. Property insurance is up a staggering 70% between 2019 and 2025 — for those who can still get it. One housing counselor told USA TODAY she had referred three homeowners to food pantries in a single week.
Gas Prices: More Pain to Come
Higher energy costs are now tied with housing as Americans’ second-biggest financial concern, mentioned by 13% of Americans — up 10 percentage points from last year and the highest since 2008.
With peace talks between the U.S. and Iran appearing deadlocked, the average cost of regular gasoline rose to $4.18 a gallon — its highest level in four years, according to AAA. Gas was under $3 a gallon before the war started in February.
GasBuddy petroleum analyst Patrick De Haan warned the national average could soon reach $4.30 a gallon. JPMorgan Chase CEO Jamie Dimon said he’s worried about stagflation — when high inflation, weak economic growth, and rising unemployment happen simultaneously.
Healthcare Costs: The Quiet Crisis
Six in 10 Americans worry they will not be able to cover medical costs in a serious accident or illness, according to the Gallup poll. Nearly half are concerned about routine medical costs.
The average cost for a family health insurance plan offered through the workplace was nearly $27,000 in 2025, up 6% from the year before, according to KFF. And for the 22 million Americans who buy subsidized insurance through the ACA marketplace, average costs more than doubled in January after Congress let enhanced tax credits expire at the end of 2025.
“I’ll be 63 in August and I am terrified of losing my healthcare coverage,” said David Soyka, 62, who has worked for an import/export business for nearly 40 years. He has non-Hodgkin lymphoma, Type 2 diabetes, and high blood pressure. “How do people manage this? They’re one accident or one illness away from being bankrupt.”
Lower-income Americans on Medicaid could also see cuts under Trump’s tax and spending law. The Congressional Budget Office estimates 7.5 million people will lose Medicaid coverage over the next decade as a result of new work requirements and more frequent eligibility checks.
Reporting by Jessica Guynn, Ken Alltucker, Betty Lin-Fisher, and Andrea Riquier, USA TODAY. USA TODAY Network via Reuters Connect.
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