Americans across income levels are changing how they eat, spend, and plan their finances as rising costs for food, housing, and basic necessities continue to tighten household budgets, according to a series of new LendingTree analyses and local data from the District of Columbia.
“Food costs are hitting every income level, and it’s changing how people spend,” said Matt Schulz, chief consumer finance analyst at LendingTree. “Nearly half of Americans are struggling to afford food, and even higher earners are feeling the pressure. That shows up in everyday choices, from groceries to dining out, and it’s a clear sign that budgets are stretched thin.”
A LendingTree survey found that 49% of Americans say it is difficult to afford food right now, while more than half report spending more on groceries and dining than they did a year ago. The financial strain is especially pronounced among younger generations and families, with 19% of Gen Z respondents, 18% of millennials, 17% of parents with young children, and 22% of low-income households saying affording food has become very difficult.
Concern extends beyond those reporting hardship. Even among higher-income households, 57% said they worried about paying for groceries in the past month.
As a result, Americans are adjusting their daily routines. Nearly 90% say they have changed how they shop for groceries. About 30% are watching prices more closely, 24% are cutting back on splurge items, and 23% are reducing food waste and relying on leftovers or switching to store brands.
For many low-income households, those adjustments are no longer enough. The report found that 22% are buying fewer groceries and 18% are shopping less often, indicating that some families are reducing food purchases after exhausting other cost-cutting options.
Spending at restaurants is also declining. LendingTree found that 84% of Americans have cut back on dining out, with 39% eating out less frequently, 25% paying closer attention to menu prices, and 22% choosing cheaper restaurants or fast food. A quarter of Americans say they are tipping less, while 19% of millennials and 16% of Gen Z respondents have stopped ordering delivery to save money.
“Margins get even tighter when inflation runs rampant,” one social media user wrote in response to a video of a restaurant worker getting into an altercation with a customer for not tipping. “Restaurant owners are hurt from raising prices to make a profit and customers eating out less, because they have less spending money.
The Benefits of Tax Season
At the same time, tax season has become a financial lifeline for many households. A separate survey found that 46% of filers are relying on their tax refund this year, an increase from 42% in 2025, 40% in 2024, and 36% in 2023.
Most filers plan to use those refunds for necessities rather than discretionary spending. About 34% say the money will go toward everyday expenses such as groceries, rent, and bills, while another 34% plan to pay down debt and 32% intend to build savings or an emergency fund.
The need is immediate for many households. More than half of filers say they expect to spend their refund within a month, while two-thirds say the refund is important to their financial situation.
“We have people in this country trying to hold out on critical time-sensitive health care until they get their tax refund,” social media user Warren wrote on X, formerly known as Twitter.
Tax season itself remains a source of strain, with half of filers reporting that it is very or somewhat stressful.
“I have horrible anxiety over April 15 and tax day,” advocate and politician Martha Bueno wrote on X. “As in I suffer all year long just thinking about having to fill out forms or pay someone to do it, and if it’s wrong then agents will come to my house to audit me and maybe even to arrest me. Government doesn’t just rob Americans of their earnings, they also give us raging anxiety.”
The Stress of Housing Costs
Housing costs are adding to the pressure. LendingTree’s analysis of more than 89,000 mortgage purchase inquiries found that first-time homebuyers now spend an average of 23.2% of their income on monthly mortgage payments, compared with 17.4% for repeat buyers.
First-time buyers are also putting down significantly less cash. On average, they plan to put down $55,471, compared with $119,270 among repeat buyers, a gap of more than $63,000. Even with smaller loans, those buyers face a heavier burden relative to their income.
“California’s dominance here isn’t surprising,” researchers noted. “It’s one of the toughest places in the country to buy a home, which means many older homeowners simply aren’t moving.”
Seven of the top metropolitan areas with the highest share of first-time buyers are in California, led by San Jose, Fresno, Los Angeles, San Francisco, and Riverside. At the other end of the list, Oklahoma City and Jacksonville have the smallest shares, followed by Raleigh, Tampa, and a tie between St. Louis and Indianapolis.
“When fewer move-up buyers are active, first-time buyers can make up a bigger share of the market,” the researchers concluded. The reality, though, is that these buyers are often stretching more than repeat buyers. They’re younger, earn less, and are putting down far less cash, so even a slightly smaller mortgage can take up a much bigger slice of their income.”
District Residents Face High Housing Costs
In Washington, D.C., the cost pressures are even more pronounced. The District’s cost of living is estimated to be roughly 40% to 54% higher than the national average, with housing costs more than double in some cases. Median rent stood at about $2,093 as of late 2025, and renters spend roughly 30.7% of their income on housing.
According to a Housing Equity Report, about 40,000 households in the District spend more than half their income on rent, with the burden falling heavily on residents earning $50,000 or less. The median home price reached approximately $595,000 in early 2026, placing ownership out of reach for many.
The financial threshold for living comfortably in the D.C. metro area is estimated at about $130,769 for a single adult, while the city’s poverty rate rose to 17.3% in 2024. High costs have pushed some families to relocate to surrounding suburbs in search of more affordable housing.“I’m paying $250 in groceries that used to cost $130-$150,” a woman named Amy told NBC News during that network’s own affordability report. “I had to use my credit card to pay for Christmas for my kids.”