Many Americans are feeling the pinch as employees dish out low “peanut butter” raises, housing costs remain bleak, and grocery prices balloon to unaffordable highs. The cost of living crisis is spilling over into the lives of all Americans, even six-figure earners once considered to be “rich.”

Around 53% of U.S. adults say they have just enough money to maintain their standard of living, the same proportion as last year, according to a recent poll conducted by the Washington Post, ABC News, and Ipsos. However, roughly half of Americans say they can no longer afford simple pleasures that many associate with a good quality of living.

Over half of Americans, 60%, say a weeklong vacation is unaffordable—and even 49% report the small joy of going out to dinner is out of their budgets. Around 74% also say buying a new car is too expensive, but beyond these commonplace “l(fā)uxuries,” U.S. adults are battling the exorbitant costs of everyday essentials. Among those who were surveyed, many found healthcare (56%), energy utilities (45%), and groceries (45%) to be out of their price range.

The economic situation has become so dire that Americans are losing hope; fewer than three in 10 U.S. adults say they’re able to get ahead financially, according to the poll. While low-income earners making less than $50,000 annually are starkly the least optimistic about their financial situation, even a majority (60%) of six-figure earners feel they’re falling behind or just maintaining their standard of living.

And when it comes to the housing market, Americans of all tax brackets are battling the affordability crisis. Nearly two in three renters don’t believe they could buy a home they want in the foreseeable future, according to the report. About 71% of those making less than $50,000, 64% of those earning between $50,000 to $99,999, and 57% reeling in $100,000+ all agree they won’t be able to purchase property. The housing crisis touches all Americans, regardless of income. Plus, U.S. women are especially downtrodden, with 70% of women versus 59% of men doubting they’ll be able to afford a house.

America’s affordability crisis: stagnating salaries and high costs

Americans are cutting back on activities and daily indulgences that may have been taken for granted. In an attempt to keep their heads above water, U.S. adults of all income levels have been adopting thriftier habits to save. But ultimately, most can’t escape the squeeze as salaries have failed to keep pace with inflated costs.

Instead of handing out big bonuses, employers are opting for poor peanut butter raises in 2026—just like they did during the Great Recession. According to a recent Payscale report, 44% plan to roll out one uniform, across-the-board wage bump in 2026 in lieu of typically higher, merit-based increases.

Even if American workers try to evade the disheartening raise trend, they won’t have much luck trying to jump to a high-paying role in a lackluster job market. Employees who stayed in their current roles received a 4.6% wage bump in January and February last year, while those who switched jobs received only a marginally higher increase of 4.8%, according to a March 2025 analysis from the Atlanta Fed. The long-held prospect of job-hopping to earn more money in the same role has been upended.

Inflation has also increased living expenses across the board, from egg prices shooting up over 60% over 2025, to a home-buyer market paralyzed by soaring property costs. Middle-class earners can’t cover the basics anymore, as 65% of those households say their incomes were falling behind the cost of living, according to a 2024 survey from Primerica.

And America’s cost-of-living crisis could even get worse, as analysts are keeping a close eye on how the conflict between the U.S., Israel, and Iran could disrupt global oil supply and inflate costs.

Research consistently says America’s six-figure earners are struggling

Even six-figure earners are pinching their pennies. About 41% of American workers making between $300,001 and $500,000—and 40% of those reeling in over $500,000—say they’re living paycheck to paycheck, according to a 2025 report from Goldman Sachs. And the cost of living crush is even impacting their daily routines.

Instead of stocking up on food at luxury stores like Whole Foods and Erewhon, more than seven in 10 of Americans making over $100,000 are now forced to shop at discount grocery chains, according to a 2025 Clarify Capital report. Around 74% of those high-earners also said they’re cutting back on dining out, 54% are skimping out on entertainment, 51% are getting thrifty with buying clothes, 49% are scaling back their subscriptions, and 49% are spending less on travel.

Beyond the day-to-day expenses, those deemed “wealthy” are also delaying major life purchases. About 47% are setting back their dream vacations and travel, 31% are stalling on home renovations, and 26% are delaying buying or leasing a new car, the Clarify Capital report noted.

The American Dream has been put on hold, even for top earners; about 17% are pushing back buying a new home, and 6% are even delaying getting married.