Nearly half of people living in American families lack the financial resources necessary to cover essential expenses and live securely in their communities, according to research highlighted in the Urban Institute's updated American Affordability Tracker.
The nonpartisan research organization reports that 49% of people in American families fall below its measure of economic security. The finding reflects the cost of necessities in the communities where people live, rather than relying exclusively on the federal poverty threshold.
The findings, published in the tracker updated October 26, 2026, underscore the financial pressures facing households as housing, health care, transportation, and energy costs compete for a limited share of family income.
What Does the 49% Figure Actually Mean?
The distinction between poverty and economic insecurity is central to understanding the Urban Institute's findings.
The federal poverty measure is one way of identifying people with limited financial resources. But living above that threshold does not necessarily mean a household can comfortably cover its essential expenses.
The Urban Institute's economic-security approach considers whether families have the resources needed to meet basic costs in their communities.
Consequently, the 49% figure should not be interpreted as the official U.S. poverty rate. It describes a broader measure of whether families can afford essential living expenses and maintain economic security.
Everyday Expenses Are Driving the Pressure
The Urban Institute's American Affordability Tracker examines earnings alongside household costs, including housing, health care, child care, transportation, and energy.
These expenses can affect households differently depending on where they live, how many people they support, and what resources they have available.
Health Insurance
According to the tracker, premiums for unsubsidized benchmark plans offered through the Affordable Care Act Marketplace increased 22% between 2025 and 2026.
The monthly premium for the second-lowest-cost Silver plan reached $611, although actual costs for individual consumers depend on eligibility for subsidies and other factors.
Energy and Transportation
The tracker also found that residential electricity bills increased faster than earnings in 31 states between June 2025 and June 2026.
These increases matter because many essential expenses cannot easily be eliminated from household budgets. Families may be able to reduce discretionary purchases, but they still need electricity, transportation, food, and housing.
Other Research Shows Similar Financial Strain
Separate research from the Pew Research Center offers another perspective on the affordability problem.
In an October 14, 2026 analysis, Pew reported that 44% of U.S. adults experienced difficulty affording at least one of four basic necessities during the previous year.
Those measures included trouble paying for medical care, transportation, or housing, as well as receiving food from a food bank or pantry.
Pew found that 71% of lower-income adults experienced at least one of those hardships, compared with 39% of middle-income adults and 13% of upper-income adults.
The two organizations use different methods, populations, and definitions. Their percentages therefore should not be treated as interchangeable. Both findings, however, point to substantial financial pressure across the country.
Why the Cost of Living Varies by Community
A household's financial security depends on more than its annual income.
Housing costs can differ substantially between cities and regions. Transportation expenses depend partly on whether public transit is available, while child care costs can have an especially large impact on families with young children.
This geographic variation helps explain why a single national income threshold may not fully describe the financial challenges families experience.
What Can Policymakers Do?
Affordability involves several policy areas, including housing supply, wages, health care, child care, energy, and transportation.
Potential responses include expanding affordable housing, reducing barriers to child care, improving access to health coverage, and addressing the cost of essential utilities.
These approaches involve different costs, tradeoffs, and implementation challenges. Their effectiveness depends on policy design, funding, and local conditions.
The Bigger Picture
The Urban Institute's findings highlight an important distinction in the national conversation about the economy: having an income does not necessarily mean having economic security.
For families facing high fixed expenses, even modest price increases can reduce their ability to save, prepare for emergencies, or maintain financial stability.
The 49% estimate is not a claim that nearly half the country lives in official poverty. It is an indication that, under the Urban Institute's broader measure, the cost of meeting essential needs remains beyond the resources available to a substantial share of American families.