MTG admits prices under Trump ‘haven’t gone down at all’, says young Americans ‘have no hope’ of buying homes

More than nine months into his second term, President Donald Trump is struggling to fulfill a key campaign promise: making life more affordable.

This is not a criticism from a political opponent but an admission from a fellow Republican, Rep. Marjorie Taylor Greene.

“Prices haven’t gone down at all,” Greene said in the The Tim Dillon Show. (1) “The job market is extremely difficult. Wages have not gone up. Health insurance is going up. Home insurance is going up. Rent is going up. Young people have no hope of buying a house.”

There is data to support many of their concerns. In fact, some key affordability metrics show that the situation may be getting worse rather than better or even stabilizing. Here’s a closer look at the persistent pressure many Americans, particularly younger ones, face.

Ordinary Americans continue to face a persistent affordability crisis. In August, the consumer price index increased 2.9% over the past 12 months, according to the US Bureau of Labor Statistics (BLS). (2) That means prices are rising faster than the Federal Reserve’s 2% target. (3)

Trump’s ongoing volatile trade war has added another layer. As of October, consumers face an average effective tariff rate of 18%, according to the Yale Budget Lab. (4) Goldman Sachs analysis suggests that businesses are currently absorbing much of this cost, but consumers could end up bearing 67% of tariff costs over time. (5)

Meanwhile, rent and mortgage payments are rising faster than inflation. In August, housing costs increased 3.6% over the past 12 months, according to BLS data. By mid-2025, the housing price-to-income ratio is at an all-time high, and Americans need an income of at least $104,000 to afford a median-priced home, according to CBRE. (6)

Amid rising prices, wages are barely keeping up. The Atlanta Federal Reserve tracker found that three-month rolling wage growth in August 2025 was 4.1%, well below the 6.7% growth recorded in August 2022 under the Joe Biden administration. (7)

Feeling the pressure, many consumers are preparing to tighten their belts. About 83% of adults said they will seriously consider cutting their budget for non-essential items in the coming months due to ongoing trade tensions, according to an Intuit Credit Karma survey. (8) Younger Americans, including Generation Z and millennials, were the most likely to say so.

Still, a tighter budget is not the only way to mitigate the impact of this affordability crisis.

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Reworking your monthly and annual budget is the most conventional way to handle a cost of living crisis. But cutting non-essential spending alone may not be enough to navigate the current economy.

To strengthen your finances, consider building a stronger emergency fund. The average emergency savings balance in the United States is about $500, and one in three Americans say they have no emergency savings, according to Empower. (9) In this economy, that is a risky position. Try to set aside at least three months of living expenses in a separate emergency fund.

You could also add a new source of income, such as freelancing or gig work. According to a MarketWatch Guides survey, more than half of Americans (51%) say they have taken secondary measures to address higher costs of living. (10)

Finally, adding inflation-resistant assets to your portfolio could help protect your savings in the long term. Financial experts who spoke with CNBC recently recommended gold, real estate, commodities, and Treasury Inflation Protected Securities (TIPS) to help ordinary consumers weather rising inflation. (11)

Combining these money-saving and income-generating strategies could leave you in a much stronger position to overcome the affordability crisis.

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Independent (1); US Bureau of Labor Statistics (2); Federal Reserve (3); Yale Budget Laboratory (4); NBC News (5); CBRE (6); Atlanta Federal Reserve (7); Intuit Credit Karma (8); Empower (9); Market surveillance (10); CNBC (11).

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.