More consumers now live paycheck to paycheck amid cost-of-living crisis
A growing number of consumers are struggling to stay financially afloat, according to recent surveys.
According to Debt.com’s latest budgeting survey, 69% of Americans say they are living paycheck to paycheck, up from 60% last year and 50% in both 2022 and 2023. In a July 14 report, the company warned not only against financial stress but also about the possibility of a “broader recession.”
Meanwhile, a 2024 analysis by Bank of America (BOA) estimated that only 26% of households live paycheck to paycheck — where necessity spending exceeds 95% of household income, leaving them relatively little left for discretionary spending or saving. However, the bank’s latest quarterly Market Landscape Insights Study showed that twice as many Americans perceive themselves to be living paycheck to paycheck.
Living paycheck to paycheck refers to individuals or households that regularly spend nearly all their income, leaving little to nothing for savings. These households have significantly higher necessity spending than others and somewhat lower incomes.
Puerto Ricans feel the squeeze
While these surveys did not specifically mention Puerto Rico consumers, recent income, housing, energy, spending and debt data indicate that many locals are living paycheck to paycheck.
Income
The median household income in Puerto Rico is significantly lower than on the U.S. mainland: $25,621 versus $78,538, according to U.S. Census Bureau data. A significant portion of the island’s population (39%) reports spending more than their monthly income, which is more than double the rate on the U.S. mainland (19%), the Financial Industry Regulatory Authority (FINRA) reported. This percentage is even higher for lower-income households: 45% for those earning less than $25,000.
The average weekly wage in Puerto Rico was $718 in the fourth quarter of 2024, up 4.5% over the year but less than half of the $1,507 average weekly wage on the mainland, according to the U.S. Bureau of Labor Statistics.
Housing
Housing affordability remains a critical issue in Puerto Rico, with a significant shortage of affordable housing units for low-income households. Overall home values in Puerto Rico rose 11.6% in the first quarter of 2025 from a year earlier (Realtor.com), far surpassing the U.S. national year-over-year median price increase of 3.4% for single-family, existing-homes (National Association of Realtors). The first quarter 2025 price surge followed an even more dramatic 22% price spike in the fourth quarter of 2024.
Energy
Skyrocketing electricity costs are putting a lot of financial pressure on locals. According to the U.S. Energy Information Administration, Puerto Rico has higher average electricity prices than all but three U.S. states: Hawaii, California and Connecticut. In April 2025, Puerto Rico residential electricity prices were 22.46 cents per kilowatt-hour (kWh) versus the U.S. national average of 17.45 cents/kWh. Commercial electricity prices were 24.54 cents/kWh, nearly twice the mainland’s 13.09 cents/kWh. In the industrial sector, prices on the island reached 23.20 cents/kWh, nearly three times the national average of 8.21 cents/kWh. Puerto Rico consumes almost 70 times more energy than it produces.
Bankruptcy
In the first half of 2025, Puerto Rico saw an 8.4% increase in bankruptcies, with individual filings under Chapter 13 up 4.7% year over year, according to the latest Boletín de Puerto Rico report. In June alone, 509 personal and commercial bankruptcy cases were filed, up 19.5% from 426 cases in June last year.
Financial fragility
A September 2024 study, co-authored by FINRA and the Center for a New Economy, highlighted the prevalence of financial fragility in Puerto Rico. Nearly half (47%) of Puerto Rican adults surveyed reported being financially fragile, compared with 30% on the mainland, meaning they lacked confidence in their ability to handle an unexpected $2,000 expense. Recent data paints a picture of ongoing financial challenges for many people in Puerto Rico, likely driven by low incomes and a high cost of living.
will things ever get better? i highly doubt it. i work in PR and i make 23k before taxes. most people make around that or even less, if they make minimum wage. it’s no wonder people keep leaving. when is our government going to say anything about our super aged population and extremely low birth rates? it’s like they don’t even care.