Rising Costs Hit Military Families Hard: A State-by-State Look [2024]

As Veterans Day approaches, the financial challenges facing U.S. military households come into sharp focus. While this holiday traditionally honors veterans, it also serves as a reminder of the ongoing struggles that current service members face, particularly amid rising costs for everyday essentials. Recent data from the U.S. Census Bureau’s Household Pulse Survey highlights a troubling trend: Military personnel and their families are finding it more difficult to cover basic household expenses such as food, housing, and transportation than the average American.

Our analysis examines how service members are faring in today’s economy compared to civilian households, highlighting the states where military families report the greatest challenges in managing their finances.

Financial Challenges Facing Service Members

Service members are struggling more financially than the average American. Image Credit: Upgraded Points

According to recent Household Pulse Survey data, members of the armed services are experiencing financial strain at higher rates than the general U.S. population. Over 40% of service members report difficulty covering their usual household expenses, compared to 36.6% of all U.S. adults.

The data also shows heightened anxiety among service members regarding rising prices. Nearly 80% of military personnel express stress about recent price increases, significantly higher than the 71.8% of all U.S. adults who share similar feelings. Furthermore, 81.8% of service members are concerned about future price hikes, reflecting widespread uncertainty about inflation’s long-term impact on household budgets.

States Where Service Members Struggle To Cover Costs

More than half of service members in certain states have difficulty covering basic household expenses. Image Credit: Upgraded Points

Across the U.S., the financial burden on service members varies significantly from state to state, primarily influenced by local economic conditions. According to the most recent data, Utah leads with 53.7% of service members reporting difficulty covering basic household expenses, closely followed by Louisiana (52.9%) and Alaska (52.8%). Other states where over half of service members are struggling include Indiana (52.0%), Tennessee (51.2%), New York (50.8%), and Florida (50.3%).

A key issue service members frequently raise is that their Basic Allowance for Housing (BAH) has not kept pace with the rapidly rising cost of housing. In states where service members face the greatest financial difficulties, such as Utah, Indiana, Tennessee, and Florida, home price increases have far exceeded the national average, exacerbating the strain on household budgets.

Another critical factor affecting military families is the employment challenges military spouses face. According to the Department of Defense, the military spouse unemployment rate was 21% in 2023, compared to a national rate of 4.3% that year. Many military bases are located in rural or remote areas, limiting job opportunities for spouses, particularly in specialized fields. Additionally, frequent relocations make it difficult for spouses to sustain long-term careers, especially for those in professions requiring state-specific occupational licenses that can be difficult to transfer.

Service members are also more likely to report financial struggles in states with higher-than-average unemployment rates, such as Louisiana, Alaska, and New York. Conversely, the state unemployment rate is below average in 9 of the 10 states where service members report the least financial difficulty. This suggests that strong local employment opportunities, particularly for spouses, significantly ease the financial burden on military households.

Methodology

Upgraded Points conducted the analysis using the latest data from the U.S. Census Bureau Household Pulse Survey Phase 4.0–4.2, covering the period from January 9, 2024, to September 16, 2024. Service members were defined as adults currently serving in the U.S. armed forces (Active Duty, Reserve, or National Guard) and their spouses.

This analysis focuses on 3 key questions from the survey:

• Difficulty Covering Household Expenses: Respondents were asked, “In the last 7 days, how difficult has it been for your household to pay for usual household expenses, including but not limited to food, rent or mortgage, car payments, medical expenses, student loans, and so on?” We defined difficulty as either “very difficult” or “somewhat difficult.”
• Stress Due to Price Increases: Respondents were asked, “How stressful, if at all, has the increase in prices in the last two months been for you?” We defined stress as either “very stressful” or “moderately stressful.”
• Concern About Future Price Increases: Finally, respondents were asked, “In the area you live and shop, how concerned are you, if at all, that prices will increase in the next 6 months?” We defined concern as either “very concerned” or “somewhat concerned.”

Statistics with fewer than 50 survey responses were omitted from the analysis. Additional statistics on home prices were sourced from Zillow’s Home Value Index, and unemployment rates were sourced from the U.S. Census Bureau’s 2023 American Community Survey 1-Year Estimates.

Full Results

Final Thoughts

As prices for essentials like housing, food, and transportation continue to climb, the economic well-being of those serving in the U.S. armed forces remains strained. These findings indicate a growing financial burden on military households, with service members feeling the pinch of inflation more acutely than their civilian counterparts. This discrepancy highlights military families’ unique financial pressures, such as frequent relocations, deployments, and other factors that can complicate financial stability.

Further, this wide variation across states underscores the importance of local economic conditions in shaping the financial well-being of military families. Factors such as housing markets, state-level military support programs, and economic opportunities for spouses can significantly influence how service members cope with national inflation trends.