The issue of affordability has become a significant topic in U.S. political discourse, particularly as it relates to the middle class. Following a period of high inflation that peaked at 8 percent post-COVID, inflation rates have since decreased to approximately 3 percent. However, this reduction has not alleviated economic uncertainty for many Americans.

Wage growth for lower-income workers, which saw gains during the pandemic, has diminished, and employment growth has stagnated. The housing market presents a particularly acute challenge, as historically low mortgage rates previously led to a surge in home prices. Currently, elevated mortgage rates have not resulted in a corresponding decrease in home prices, making it difficult for new buyers to enter the market and for existing homeowners to relocate. This situation has contributed to a growing perception that traditional aspirations of homeownership are increasingly unattainable for the middle class.

Despite these challenges, certain sectors of the economy, particularly technology, continue to thrive, and unemployment rates remain low. The disparity between the buoyant markets and the struggles of the middle class has intensified public concern and political debate regarding the existence and implications of an affordability crisis. Experts are now examining the reality of this crisis and potential policy responses to address the economic pressures faced by the middle class.