Photo: Moment RF
For years, politicians from both parties have talked about the so-called “affordability crisis,” and nearly every one of them has pledged to fix it—yet the problem persists. So what exactly is the affordability crisis, and more importantly, how do we solve it?
Unfortunately, the affordability crisis is a multifaceted issue with many different causes and effects. That means there is no single, silver-bullet solution that will fix it for everyone.
Financial planner Richard Rosso put it this way: “It’s a soup—a very complicated soup. It’s all these little microeconomic stories from every household and every political persuasion.”
In short, affordability means different things to different people. Because of that, each individual or family must tackle the specific areas that matter most to them.
Rosso offered a simple example: “You’ve got one group that loves steak and can’t afford it anymore—that’s affordability to them. To me it’s something else. That’s why it’s so hard to pin down.”
So can anything actually be done? The good news is yes. While there’s no one-size-fits-all cure, Rosso says real wage growth—whether through raises, cutting unnecessary expenses, or relocating to more affordable housing—gives most Americans the breathing room they need.
By freeing up real income, families can direct those dollars toward whatever affordability pain points matter most to them, whether that’s groceries, housing, transportation, or something else.