Brookings Affordability Report Highlights Widespread Gap

The study was led by Andre Perry, director of Brookings’ Center for Community Uplift, with senior research assistant Hannah Stephens. Perry warned that debate emphasizes inflation, ignoring stagnant wages; Stephens noted that housing, health care and child care dominate budgets. Federal Reserve Bank of New York survey reported food insecurity at its highest level since 2020.

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The analysis shows that over half of families in New York State cannot meet basic costs, while 60 % of Washington, D.C. residents can. In D.C., Black households lag city baseline by more than 20 points, whereas Hispanic households are about three points above the average.

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Economists label the pattern a “K-shaped” recovery: higher-income families see wage gains while lower-income families stagnate. The report notes federal minimum wage has been frozen at $7.25 since 2009, and a $10-per-hour increase could lift 38 million households out of unaffordability—a transformative step.

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Policy analysts argue that without federal action on minimum-wage hikes or targeted subsidies for housing and health care, wage growth alone will not close the affordability gap. They caution that tax refunds, while boosting short-term spending, may conceal deeper systemic inequities.

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• “My main takeaway is that when we talk about affordability, we've been focusing on inflation. But there's the income side of the story that we often do not talk about,” — Andre Perry, Director, Brookings Center for Community Uplift

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• “Housing, healthcare and childcare are especially large chunks of household budgets that families have little control over, said Hannah Stephens, a senior research assistant at the center.” — Hannah Stephens, Senior Research Assistant, Brookings Center for Community Uplift

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• “In order to actually solve affordability, we have to deal with these larger, most structural costs that are harming households,” — Hannah Stephens, Senior Research Assistant, Brookings Center for Community Uplift

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• “But can we do it? Yes.” — Brookings report

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The report highlights a data gap for 2026, noting that new financial pressures may have pushed additional families past the affordability threshold. Future updates will need to incorporate 2026 data to gauge the impact of rising gas prices and post-pandemic economic shifts.

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