High Cost of Living Remains Top U.S. Worry as Personal Finance Pessimism Hits 25-Year High

A new report from Gallup reveals that the high cost of living and inflation continue to dominate the financial concerns of American families, even as broader inflation rates moderate. The survey data, released May 5, 2026, highlights a deeply entrenched pessimism regarding personal finances and growing negative sentiment towards the housing market.

Cost of Living and Energy Concerns

Thirty-one percent of Americans cite the high cost of living or inflation as the most important financial problem facing their family today. While this figure is down from a 41% peak recorded in 2024, it remains similar to last year’s reading and among the highest in Gallup’s more than 20-year trend.

Concurrently, energy costs are surging as a major concern. Thirteen percent of respondents name energy costs or oil and gas prices as their primary worry, a 10-percentage-point increase from the previous year and the highest figure recorded since 2008. Energy costs now tie the cost of owning or renting a home as Americans’ second-biggest financial concern.

Record Personal Finance Pessimism

The bleak financial environment is translating into record levels of personal pessimism. Fifty-five percent of Americans report that their financial situation as a whole is getting worse. This figure is similar to last year’s 53% but up from 47% two years ago, and it represents the largest share of Americans feeling pessimistic in the 25-year history of the Gallup trend.

This record level of concern exceeds those recorded during the 2008 financial crisis and the COVID-19 pandemic. It also marks the fifth consecutive year that more Americans say their financial situation is getting worse rather than getting better.

The burden of high prices is pervasive, with 55% of Americans reporting that recent price increases have caused financial hardship for their household. This includes 15% who describe the hardship as severe, with moderate hardship accounting for 40% of the total. Even with the current inflation rate now near 3%, a majority of Americans continue to report strain from high prices.

Negative Housing Market Views

Americans’ assessment of the U.S. housing market remains broadly negative. Sixty-seven percent of adults say now is a bad time to buy a house. This marks the fifth consecutive year that a majority has held an unfavorable view, a significant shift from the prior two decades when majorities viewed the market favorably. The percentage of Americans saying now is a good time to buy is 29%, a rise from its record low of 21% in 2023 and 2024.

The pessimism is especially acute among younger non-homeowners (aged 18 to 34). Only 29% of this group expect to buy a home within the next five years. This expectation is sharply down from 57% in the 2013/2015 period. Moreover, the share of young non-homeowners who say they are unlikely to buy in the foreseeable future has more than doubled, now standing at 30%.