The cost of living isnโt just measured in dollars and cents anymore. Itโs measured in sleepless nights, rising anxiety, and a growing sense of emotional depletion.
According to a new national study conducted by AffordableHousingHub.org, financial instability is taking a mental toll on millions of Americans, and many are struggling to cope.
The survey of 1,000 U.S. adults paints a sobering picture of life under constant economic stress. From soaring housing costs to digital burnout and feelings of being โtrappedโ in unchangeable circumstances, Americans are carrying more than just financial burdens. Theyโre also grappling with what researchers call โcrisis fatigue.โ
A Nation on Edge
While inflation rates have cooled slightly, the lingering effects of economic volatility continue to weigh heavily on households. According to the study:
- One in three Americans reports experiencing significant financial stress on a regular basis.
- 55% of Gen Z and 57% of Millennials say financial stress has caused them to experience anxiety or panic attacks.
- Renters are twice as likely as homeowners to report feeling angry, frustrated, or trapped in their current living situation.
- Over half of respondents (53%) reported losing sleep over money.
- 43% actively avoid the news because it adds to their anxiety.
- 45% of renters feel emotionally stuck due to housing market conditions.
- 12% of Americans say they canโt afford to prioritize their mental health at all.
These numbers suggest that financial insecurity has become more than a budgeting challenge. Itโs a persistent emotional stressor with far-reaching consequences.
โWeโre seeing signs of emotional depletion on a nationwide scale,โ a spokesperson for AffordableHousingHub.org said. โThis isnโt just about financial hardshipโitโs about how that hardship quietly infiltrates daily life, relationships, and long-term wellbeing.โ
The Emotional Toll of Financial Pressure
For many Americans, particularly younger generations, financial stress is compounded by uncertainty in job markets, mounting student loan debt, and rising costs of basic needs. Even those with stable employment and adequate housing are feeling the pressure.
Mental health experts warn that sustained economic anxiety can lead to chronic stress conditions, triggering burnout, sleep disruption, strained relationships, and in some cases, long-term health issues.
โMoney stress doesnโt just affect your walletโit affects your focus, your health, even your relationships,โ said Steve Cummings, founder of Budgets Make Cents, a personal finance platform that helps individuals take control of their money. โWe talk about budgeting like itโs a spreadsheet problem, but for most people, itโs a life problem. When someone says they feel โstuck,โ it usually means they donโt just need financial adviceโthey need a path forward.โ
Cummings adds that itโs not uncommon for people to shut down or disengage when they feel financially overwhelmed. โPeople know they should be budgeting, saving, or planning for the future, but when theyโre exhausted just trying to get through the day, those priorities slipโand then guilt or shame sets in. It becomes a cycle.โ
When Mental Health Becomes a Luxury
One of the most striking findings in the study is that 1 in 8 Americans say they simply canโt afford to focus on their mental health. For some, this means skipping therapy or postponing wellness activities. For others, it means accepting chronic stress as a normal part of life.
This data echoes a growing concern among financial experts and mental health advocates: that mental wellness is increasingly being treated as a privilege, rather than a basic need.
Breaking the Cycle
While the numbers are grim, the study also highlights the importance of addressing both financial literacy and emotional resilience simultaneously. Tools such as emergency budgeting plans, community housing support, and accessible mental health care can play a crucial role in breaking the cycle of financial burnout.
As Cummings notes, โThe first step isnโt always cutting spending. Sometimes itโs just acknowledging how heavy things feelโand giving yourself space to make one small improvement at a time.โ
The full study, โCrisis Fatigue: The Burnout Behind the Cost of Living in America,โ is available at AffordableHousingHub.org.
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