6 Things the Middle Class Will Struggle To Afford by the End of 2025

There’s no denying that the current economy is changing everyone’s long-term plans. With i nflation driving up costs like mortgage rates and rental prices, housing costs are already squeezing budgets.

And it’s not just housing that’s going up — other expenses are climbing as well.

According to experts, by next year, the middle class might find it increasingly difficult to keep up with rising payments.

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“Inflation erodes the purchasing power of money, meaning that as prices for goods and services increase, the same amount of money buys less,” said Dennis Shirshikov, finance expert and head of growth at GoSummer .

For middle-class families, this translates to higher costs for everyday necessities such as groceries, utilities, and transportation.

“Over the past year, we’ve seen inflation rates higher than the historical average, driven by factors such as supply chain disruptions and increased demand.”

He explained that if inflation continues at this pace, the middle class will struggle to maintain their current standard of living without significant adjustments to their budgets.

Below are some of the things they will struggle to afford by the end of 2025.

Also here’s five services the middle class won’t be able to afford in the next five years.

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Housing

One significant area where the middle class will likely feel the pinch is housing. Home prices have been on an upward trajectory, driven by low inventory and high demand.

“This trend is expected to continue, making it increasingly difficult for middle-class families to afford homeownership,” said Shirshikov.

“For example, in many urban areas, the cost of a median home has already surpassed the affordability threshold for middle-income earners.”

As mortgage rates potentially rise, he noted that the cost of homeownership will further escalate, pushing more people out of the housing market or into precarious financial situations to secure a home.

Learn More: How I Went From Middle Class to Upper Middle Class

Healthcare

Another area of concern is healthcare. Even with employer-sponsored health insurance, out-of-pocket costs such as premiums, deductibles, and copays have been rising steadily.

“By the end of 2025, these costs are expected to increase further, placing additional financial strain on middle-class families,” said Shirshikov.

Essentials

Nischay Rawal, certified public accountant and founder of NR Tax & Consulting , has seen many of his clients struggle with increasing costs of living while their income remains flat.

He noted that by 2025, inflation may make even basic necessities difficult for middle-class families to afford without strict budgeting.

“My firm’s analysis shows living expenses for a typical family of four could rise 25-30% in the next few years.”

“A household earning $50,000 today may find it nearly impossible to pay for housing, healthcare and education at current inflation rates.”

“Home values and rents may increase over 50% while healthcare costs outpace wage growth. Families will face tough choices to pay for essentials.”

To combat this, he suggested middle-class families cut out “luxury” spending on dining out, entertainment and hobbies which often make up half of household budgets.

“Only reducing discretionary purchases and saving more can help maintain financial security against rising costs.”

“The days of careless spending may be ending for America’s middle class. Difficult times could be ahead.”

Justin Godur, finance advisor and founder of Capital Max , similarly noted the same.

“I’ve seen clients who used to comfortably pay their mortgages now having to cut back on essentials to make ends meet.”

Food prices have also been climbing steadily, according to experts.

“A family that spends $200 weekly on groceries might need to stretch their budget to cover basic items,” said Godur.

This, in turn, could lead to difficult choices, like opting for less nutritious options or reducing meal portions.

Education Expenses and Childcare

Education expenses, particularly higher education, will also become more burdensome.

“Tuition fees have been increasing for years, and there is no indication that this trend will reverse,” Shirshikov continued.

“Families currently saving for college may find that their savings fall short as education costs continue to rise.”

This, he explained, could force more families to rely heavily on student loans, which can lead to long-term financial burdens.

Godur equally agreed. “Education and childcare expenses are soaring.”

He explained that parents might find themselves struggling to afford quality education or after-school programs.

“This could lead to increased reliance on public schooling and cutting back on extracurricular activities.”

New Cars

According to Mafe Aclado, general manager at Coupon Snake , if inflation persists, buying a new car would become one of the luxuries the middle class can scarcely afford.

“Except for the individuals in this class who have somehow managed to have found means to increase their incomes, become strategic at budgeting, and incorporate the practice of frugality in their daily spending habits.”

Family Trips

Experts say this is another area that will likely have to be trimmed by next year.

Aclado said that if middle class families stretch their budget carefully, and choose to vacation at destinations that allow them to save and significantly reduce travel costs like flight tickets–then that could help them afford these trips more.

“And maybe shorten their visit, just so they are able to save on hotel costs and on feeding. Then maybe family trips and vacations would still be something the middle class can continue to enjoy by the end of 2025, despite inflation.”

This article originally appeared on GOBankingRates.com : 6 Things the Middle Class Will Struggle To Afford by the End of 2025