The rising cost of living is the defining challenge for Americans trying to achieve their aspirations, research from the McKinsey Institute for Economic Mobility finds. The squeeze on household budgets is the most frequently cited barrier by survey respondents, outpacing other challenges such as debt and health issues, McKinsey’s Diana Ellsworth, JP Julien, and coauthors explain. The greatest strain on household budgets comes from essential expenses, with nearly nine out of ten citing the cost of groceries and food. Housing, transportation, and utilities are also major sources of financial pressure.
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Bar chart showing the rising cost of living as the leading barrier to making progress toward personal goals, cited by 60% of respondents. Other barriers include debt (34%), physical health challenges (33%), mental health challenges or stress (33%), limited time (32%), lack of career growth (22%), unemployment or job loss (19%), caregiving responsibilities (17%), gaps in skills, education, or training (14%), transportation challenges (13%), and challenges accessing public benefits or services (7%). Among respondents who cited rising cost of living, the most commonly reported sources of strain were groceries and food (88%), housing costs (57%), transportation including gas (50%), utilities and phone (48%), healthcare and prescriptions (37%), education and student debt (9%), and childcare and eldercare (8%).
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Source: McKinsey Economic Mobility Aspirations Survey (April 1–13, 2026, n = 30,119)
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To read the report, see “In pursuit of progress: Americans’ aspirations for economic mobility,” August 5, 2026.