Squeezed Middle Class Struggles With Soaring Costs
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Mortgage rates have risen from 3% to 7% since 2020, making homebuying much less affordable and causing a wide gap between pre-pandemic and current buyers.
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Childcare costs have surged over 50% since 2013 to around $1,100 per month on average, adding major expenses for families.
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With high mortgage payments, childcare costs, and student loans, even $150,000 incomes are feeling squeezed for many modern middle-class families.
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Inflation has far outpaced income growth, pushing homeownership out of reach for more Americans and causing more to rent.
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The traditional markers of middle-class life like owning a home, saving for vacation, and affording kids' activities are becoming difficult on incomes that used to be considered solidly middle-class.