Inflation, Debt, and a Housing Standstill: Provident Bank's 2026 Consumer Survey Captures the State of American Household Finances

GlobeNewswire

ISELIN, N.J., May 14, 2026 (GLOBE NEWSWIRE) -- Provident Bank, a leading New Jersey-based community financial institution, announced today the results of its 2026 Consumer Survey, which examined how American households are navigating persistent inflation, elevated interest rates, and shifting expectations from their financial institutions. The findings reinforce that consumers are under pressure but actively adapting, reassessing spending, managing debt, and making deliberate decisions about where and how to get the financial guidance they need.

The survey found that more than 1 in 3 Americans cite keeping up with the rising cost of basic necessities as their top financial priority, ranking it ahead of both savings and debt reduction. Consumers are taking matters into their own hands, paying down debt faster, rethinking credit card use, and redirecting tax refunds toward essentials, but the data reveals a persistent gap in access to financial guidance.

“Our latest survey highlights the ongoing financial pressure many households are facing, from persistent inflation and elevated interest rates to a housing market that remains out of reach for many. We’re seeing customers respond thoughtfully by reducing discretionary spending, prioritizing debt, and delaying major purchases,” said Anthony Labozzetta, President & CEO, Provident Bank. “At Provident, this reinforces our responsibility to meet customers where they are and provide the guidance and support they need to navigate today’s economic environment with confidence.”

The survey data highlights include:

Inflation Remains the Top Household Pressure: Nearly 64% of consumers are extremely or very concerned about the current cost of living. Groceries (63%), gasoline (46%), utilities (33%), and insurance premiums are identified as the most burdensome expense increases. Insurance costs, in particular, have become a significant pain point, with 66% of respondents reporting moderate or significant increases in auto insurance premiums over the past 12 months and nearly 60% reporting similar increases in home insurance. If costs continue to rise, 40% of respondents say they would switch to a different insurance provider to find a lower rate.
High Interest Rates Are Reshaping Credit Card Behavior: More than 61% of consumers have made at least one significant change to how they use credit cards in response to elevated interest rates. 32% of respondents are actively paying down debt faster to avoid accruing interest, and 21% have stopped using credit cards for non-essential purchases altogether. 38% of respondents believe current credit card APRs are too high and unfair, a sentiment that rises to approximately 46% among those aged 55 and older.
Elevated Mortgage Rates Continue to Stall Housing Activity, With Consumers Turning to Self-Directed Research: Nearly 20% of consumers are actively delaying a home purchase due to high mortgage rates, and just over 11% would like to sell their home but are staying put because their current rate is significantly lower than today's rates. Among those actively considering a home purchase, just over a quarter of respondents are researching mortgage options independently online and plan to apply digitally through their lender of choice. That is more than double the 12% who have contacted their bank directly to discuss mortgage rates and financing options.
The Financial Education Gap is the Defining Consumer Banking Expectation: 58% of consumers rate financial literacy and education programs as essential or very important when choosing a bank. Yet only 29% find their bank’s current offerings genuinely helpful, and nearly 30% have not seen any relevant resources from their bank at all. Among younger adults, the expectation is even higher: 83% of Gen-Z respondents (aged 18–24) and 73% of Millennial respondents (aged 25–34) place significant weight on a bank’s financial education offerings.

“At Provident, our role goes beyond the transaction. Through our Financial Wellness Center, we provide practical tools and guidance, from budgeting and building financial resilience to small business financing, so customers can make informed decisions and build stronger financial futures,” said Renee Altomonte, Executive Vice President, Retail Banking Director, Provident Bank. “At a time when consumers are asking more from their banks, we’re committed to showing up with the resources and support they need to navigate what comes next.”

The survey was conducted by Pollfish, a market research provider, on behalf of Provident Bank. The findings are based on responses from 1,000 U.S. adults across all four census regions, spanning a range of income levels, employment statuses, and age groups from 18 to 65+. To access the full findings, please contact Vested directly: [email protected].

About Provident Bank

Founded in Jersey City in 1839, Provident Bank is the oldest community-focused financial institution based in New Jersey and is the wholly owned subsidiary of Provident Financial Services, Inc. (NYSE: PFS). With assets of $25.20 billion as of March 31, 2026, Provident Bank offers a wide range of customized financial solutions for businesses and consumers with an exceptional customer experience delivered through its convenient network of more than 140 branches across New Jersey and parts of New York and Pennsylvania, via mobile and online banking, and from its customer contact center. The bank also provides fiduciary and wealth management services through its wholly owned subsidiary, Beacon Trust Company, and insurance services through its wholly owned subsidiary, Provident Protection Plus, Inc. To learn more about Provident Bank, go to www.provident.bank or call our customer contact center at 800.448.7768.