Financial Experts: What 'Affordable' Meant in 2010 vs. What It Means in 2026
Shopping has gotten easier since 2010, but paying for the parts of life that don’t arrive in a cardboard box is another story.
“Affordable” still means a cost fits the budget. What changed from 2010 to 2026 is what households must account for. Some consumer products deliver more value for the money, while recurring charges and major expenses take up more of many household budgets and can rise over time. As a result, a monthly payment or debt ratio reveals less about what a household can afford than it once did.
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Read on to find out more.
What 'Affordable' Meant in 2010
Ralph V. Estep Jr., licensed public accountant, founder of Saggio Management Group and host of the daily “Becoming Financially Confident” podcast, said conventional debt-to-income guidelines came closer to reflecting whether his clients could afford a home purchase in 2010 than they do today. One commonly cited guideline, the 28/36 rule, suggests keeping housing expenses below 28% of gross income and total debt below 36%.
Estep said the rule was calibrated when insurance, child care and property taxes cost less. Today, a household can pass the test on paper but have little money remaining after other bills, especially with two children in care.
Estep also remembers fewer recurring charges in his clients’ budgets.
“In 2010, a typical client had a cable bill and a gym membership,” he said. “Now I pull a bank statement and count 14 to 20 recurring drafts, most of them under $20, none of them individually worth canceling, together running $300 a month. Nobody ever decided to spend $3,600 a year on that. It accumulated.”
What Became More Affordable Since 2010
After accounting for changes in product quality, the Bureau of Labor Statistics’ price index for video and audio products fell about 67% between December 2009 and June 2026, according to data reported through the Federal Reserve Bank of St. Louis.
Diogo Costa, president of the Foundation for Economic Education, also pointed to software, appliances and cellphones as products that have become more affordable for middle-income consumers.
“You can buy on Amazon, but not on Zillow,” Costa said.
What Became Harder To Afford Since 2010
Costa identified housing as the clearest example. The median sales price of new houses sold rose from $219,500 in the second quarter of 2010 to $410,700 in the same quarter of 2026, an 87% increase, according to Census Bureau and HUD data reported through the Federal Reserve Bank of St. Louis.
He also named health care, education and child care as growing pressure points.
Estep has seen costs rise even when a household changes nothing.
“I have clients whose homeowners premium doubled in four years with no claim, no move and no change in coverage,” Estep said. “Property tax reassessments do the same thing. A family can hold their income flat, spend nothing new and be $400 a month worse off than they were two years ago.”
What 'Affordable' Means in 2026
Estep now looks at the actual dollars remaining after every fixed obligation rather than relying on a debt ratio alone.
“I ask what’s left over after every fixed obligation and I want to see a real number, not a ratio,” he said.
Estep considers a purchase unaffordable if a $1,500 surprise would put the household in credit card debt.
Costa also considers what a purchase might prevent someone from doing, including building emergency savings, investing for retirement, changing jobs, moving or starting a family.
“A purchase is not truly affordable if it prevents you from achieving your highest-priority goals,” Costa said.
Christina Mehltretter, certified public accountant (CPA), financial advisor and chief operating officer at Carolinas Financial and Retirement Planning, asks her clients: “Can I make this purchase and meet my financial goals?” She has seen homebuyers stop contributing to retirement to make room for a mortgage.
“Before you know it, one year of not contributing to retirement turns into 10 years,” she added.
Better deals on consumer products offer little relief when housing, healthcare, child care and insurance consume more of the household budget.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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