One of the top issues we hear about recently affecting Americans is affordability. The US is grappling with rising costs, and affordability is taking center stage. It’s a consistent popular search on Google, and polls show affordability is the top issue facing Americans. Let’s take a look at some of our asset classes and big-ticket items to see how rapidly prices have increased, but let’s first take a look at our National Debt.
National Debt
As of 12/6/2025, the total U.S. debt was $38.4 trillion, a 6.16% increase from the previous year. It has doubled in the last decade. The US has a statutory limit on Federal debt, but it has been reversed several times. There is a huge mismatch between spending & revenue.
Every day, the US spends $2.6 billion just on interest to service the debt. This amounts to $1.0 trillion in annual/debt service this year, up 8% from the same period a year ago.
Looking back 11 years to 2014, the national debt was $17.8 trillion. In 2004, it was $7.4 trillion. In 1994, $4.6 trillion; in 1984, $1.5 trillion; and in 1974, $475 billion. That’s an amazing increase in 51 years, from ($475 billion to $38.4 trillion.)
Real Estate
For October 2025, the median sales price for a single-family home in the USA was $415,000–420,000. Between 2019 and 2023 alone, the median price for a single-family home increased by more than 60%.
For December 2025, in New Hampshire, the median sales price for a single-family home was approximately $525,000, representing close to a 5% increase from the previous year. Housing remains very expensive; the state’s median household income is just 60% of what is necessary to qualify for a medium-priced home under today’s interest rates. Back in 2021, the index was at 100 when median-income families could afford median-priced homes.
There were 2,092 homes on the market at the end of November in New Hampshire. That’s a 19% increase over last year; however, the state only has a two-month supply of inventory compared to the national average of 4.3 months’ supply. We should have a 5 to 7 month supply to be considered a balanced market. The last time New Hampshire experienced a balanced market was in October 2016 with 7,112 homes for sale.
Homes were flying off the shelves in the first 2 years of the pandemic when rates were low, but when the interest rates rose, many homeowners stopped selling so they wouldn’t have to trade a low mortgage rate for a high one. That dynamic, called the mortgage rate lock-in effect, has exacerbated the housing shortage. American home sales this year hit their slowest pace since the financial crisis era of 2010.
A record number of US homes are worth $1 million or more, and many million-dollar properties are no longer considered luxury homes.
The most expensive home in America hit the market this year in Aspen at $300 million. Little Lake Lodge in Aspen, Colorado, is a sprawling 74-acre estate. A Naples, Florida, waterfront compound was the most expensive home sale of 2025 so far, going for $133 million.
2025 has seen a significant uptick in inventory for high-end luxury properties, giving buyers more choices.
Stock Market
The Dow Jones Industrial average hit 47,560 on 12/10/25, a bit lower than its all-time high on 11/12/25 at 48,254. Compare that to its close on 11/14/14, 11 years ago at 17,652. It’s jumped 2 1/2 times in 11 years.
The S&P 500 closed at 6,840 on 12/10/25. If you look back 11 years ago to 11/12/2014, the S&P index closed at 2,039. You can see it increased 3 ¼ times over 11 years.
The NASDA Composite Index closed at 23,654 on 12/10/25, just a fraction lower than its all-time high close of 23,958 on 10/29/25. Look back 11 years to 11/12/14, when it closed at 4,660. You can see that it increased fivefold over the 11-year span! The magnificent seven reached epic highs. Nvidia’s market cap just hit 4.31 trillion, followed by Apple at 4.1 trillion and Alphabet (Google) at 3.8 trillion.
Gold
The price of 1 ounce of gold as of 12/11/25 was $4,108, just shy of its all-time high on 10/15/25 at $4,379. Imagine it has gone up 7.36% in 30 days, 25.68% in six months, 59.91% in one year, and 130.79% in five years… something is brewing!
Silver
The price of 1 ounce of silver as of 12/11/25 was $62.05, just pennies shy of its all-time high of $62.88 this month. Compare that to its price 10 years ago, at $13.93 per ounce; that’s a 4 1/2 times increase in 10 years!
Bitcoin
The price of bitcoin in US dollars as of 12/11/25 was $89,730. It dropped after the Fed cut its benchmark rate by 25 basis points. The US dollar index fell to a seven-week low after the Fed rate cut. Bitcoin has now dropped below its peak of $126,210 on 10/6/25. If you go back to 11/14/22, roughly 3 years ago, it was priced at $16,618. That’s an increase of 7 1/2 times in only three years! It’s a volatile ride, however.
Vehicles – Cars and Trucks
Can you believe the average price for a new car is hovering around $50,000? I remember when I purchased my first car (used), a 1967 Triumph Spitfire for $700. Today, that might get you a new set of brakes. A new full-size pick-up truck today might fall in the $50,000-$60,000 range, with many of them priced higher. My first home (new construction, post and beam house, on 5 acres in Gilford, NH) cost $57,000. Wow… hard to believe how much prices have inflated since then.
College Education
The average 4-year cost (tuition fees, room & board) for an in-state public university is $124,000, for an out-of-state public university it’s $204,000, and for a private, nonprofit university it’s $262,000. Many elite universities are much more expensive, for example, at Boston College today, the total sticker price is roughly $93,168 a year for tuition/fees, room and board, books, etc. That is $372,672 for 4 years (not considering grants / scholarships). With AI advancing at “warp speed”, what will the job market be after 4 years of college?
Food / Groceries
Grocery prices have increased 30% over the past five years, with some items like beef & eggs jumping 52%–83%.
Car / Home Insurance
Average car insurance premiums in the US have increased roughly 50% to 65% since 2020. Home insurance premiums in the last 5 years have risen roughly 70% on average in the USA.
Health Insurance
Employer-sponsored family premium plans have risen over 24% since 2019. Over the last 5 years, premiums have increased 26% to as high as 45%. Employer Health Insurance plans have seen average family premiums jump up to 51% over the past decade.
There is no question that the above asset classes and household expenses have approached record highs this past year. History tells us that most asset price cycles make adjustments and corrections to their upward trajectories. The big question is where we are now in the cycle.
This article was written by Frank Roche. Frank is president of Roche Realty Group located in Meredith, NH, and can be reached at (603) 279-7046. Data was compiled from PrimeMLS and is subject to change. Please feel free to visit www.rocherealty.com to learn more about the Lakes Region and its real estate market. www.rocherealty.com to learn more about the Lakes Region and its real estate market
Frequently Asked Questions About Affordability
What is driving affordability issues in the United States?
Affordability challenges are being driven by rising housing prices, increased national debt, higher insurance and healthcare premiums, inflated asset classes, and significant increases in food, education, and vehicle costs.
How does the national debt impact affordability?
The national debt has climbed to $38.4 trillion, doubling over the last decade. With the US spending $2.6 billion per day on interest alone, rising debt service costs reduce fiscal flexibility and contribute to broader economic pressures that affect affordability.
Why is housing affordability in New Hampshire declining?
In New Hampshire, median home prices reached around $525,000 in 2025, while median household income is only 60% of what is needed to qualify for a median-priced home using current interest rates. Low inventory and mortgage rate lock-in continue to restrict supply.
How have asset classes like stocks, gold, and bitcoin contributed to affordability challenges?
Stocks, gold, silver, and bitcoin have all grown dramatically over the last decade. While these inflated asset classes benefit investors, they also reflect rising economic volatility and contribute to widening affordability gaps for average households.
Why are everyday expenses rising so quickly?
Grocery prices have risen 30% in five years, car insurance is up 50–65% since 2020, home insurance has risen 70% in five years, and healthcare premiums continue to outpace wages. Combined, these increases strain household budgets and limit affordability.
What major expense categories have increased the most?
Home prices, insurance premiums, groceries, college tuition, and vehicle prices are among the fastest-rising expense categories impacting household affordability.
Is the stock market connected to affordability?
Yes. While indexes like the Dow, S&P 500, and NASDAQ have hit record or near-record highs, these increases often outpace wage growth. This widens the affordability gap for those not heavily invested in markets.
