The biggest purchase in life now seems unaffordable — and that’s putting consumers in a sour mood

MarketWatch

by Mark Hulbert

February 20, 2026

AI-Generated Deep Dive Summary

American consumers are feeling increasingly pessimistic about their financial prospects despite positive economic indicators. While inflation is trending downward and unemployment rates remain near historic lows, a growing sense of financial insecurity is casting a shadow over consumer confidence. This gloom stems largely from the overwhelming cost of homeownership, which has become unattainable for most Americans due to rising housing prices and stagnant wage growth. The U.S. economy shows signs of stability, with the Consumer Price Index (CPI) slightly above the Federal Reserve's 2% target and unemployment rates near a 50-year low. However, these macroeconomic improvements haven't translated into personal financial relief for many. The inability to afford a home—a major life purchase—has emerged as a key source of frustration among consumers. This sentiment is particularly pronounced among younger generations, who are grappling with student debt and higher housing costs compared to previous decades. The lack of affordability in the housing market has created a ripple effect on consumer behavior. Many Americans are delaying major purchases or cutting back on spending, impacting not only their personal financial decisions but also broader economic growth. This trend highlights the disconnect between macroeconomic stability and individual financial struggles, underscoring the importance of addressing housing affordability as part of any comprehensive economic strategy. For those interested in finance, understanding this dynamic is crucial. Consumer sentiment plays a significant role in shaping spending patterns and overall economic activity. When people feel financially vulnerable, they are more likely to save rather than spend,

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Originally published on MarketWatch on 2/20/2026