Bank of America: Nearly One in Four U.S. Households Lived Paycheck to Paycheck in 2025

Overview

• Bank of America estimates nearly 25% of households—and about 29% of lower-income households—spent over 95% of income on essentials in 2025.
• Consumer prices rose about 3% year over year as of September, while bank deposit data show wages up roughly 2% for middle-income and 1% for lower-income households.
• The share living paycheck to paycheck increased by 0.3 percentage points from 2024, a slower rise than the prior year’s pace.
• Regional strains diverged: the Northeast and Midwest saw increases in paycheck-to-paycheck households, while the South and West saw declines; CPI in the West rose 3.3% year over year in September.
• Researchers note the analysis is based on depositor data, which may understate hardship because unbanked low-income households are not fully captured.