Data & Research May 23, 2025

Economic Anxiety Deepens as Financial Goals Slip Out of Reach

The pressure of economic uncertainty is reshaping aspirations across generations, according to recent polling.

Reported by

Economic and political uncertainty is taking a toll on Americans’ finances, leaving many Americans feeling stuck despite their efforts, according to the 2025 Financial Literacy and Preparedness Survey from the National Foundation for Credit Counseling and The Harris Poll.

Nearly two-thirds of respondents (63%) fear that government partisanship and volatility will harm their finances, while 57% said economic uncertainty makes both long-term goals and debt management harder. Although 65% feel confident in their financial decisionmaking, only 56% gave their actual finances high marks—highlighting the gap between confidence and outcomes in today’s challenging environment. The report, funded by the Wells Fargo Foundation, showed how external volatility fuels financial stagnation.

For more stories like this, sign up for the PLANADVISERdash daily newsletter.

Americans Struggle to Stay Afloat Financially
More than half (53%) of U.S. adults surveyed said they feel that no matter how hard they try, something always sets them back financially. A similar amount (48%) said they feel they are constantly treading water, vulnerable to unexpected expenses; 33% said they are just getting by financially.

Despite widespread financial strain, only 5% of respondents facing debt-related challenges, which would equate to about 13.1 million adults if extrapolated to the larger population, said they would seek help from a nonprofit credit counseling agency, meaning 95% of this group are navigating these difficulties without professional support.

“Feeling financially stressed isn’t a personal failing,” said NFCC CEO Mike Croxson in a statement. “As the survey makes clear, it’s often a reflection of the deep uncertainty consumers face today. Good intentions aren’t enough when the economic ground feels unstable. That’s why the steady, expert support from certified credit counselors can make a meaningful difference for people in these uncertain times.”

Homeownership Goals Meet Doubt

This widespread financial strain extends beyond immediate concerns, influencing Americans’ outlook on long-term aspirations. Among the most affected is the goal of homeownership, which, for many, now feels increasingly out of reach. Each quarter, BMO Bank N.A. publishes the BMO Real Financial Progress Index, providing insight into how Americans are feeling about their financial progress.

Results from the first quarter survey indicated that while 66% of respondents still see homeownership as a major life goal, 61% now feel less confident about achieving it than they did five years ago, highlighting a growing gap between aspiration and reality.

“The financial hurdles to owning a home have rarely been higher, especially for young households that don’t yet have their foot in the door,” said Scott Anderson, BMO’s chief U.S. economist, in a statement. “Poor housing affordability, limited inventory of existing homes, and rising interest rates make finding the right home that fits your budget a challenging endeavor.”
The Markets May 22, 2025

Positive Returns Drive Rising Demand for Real Assets

A Bank of America report highlights why real assets are gaining ground in diversified, long-term portfolios.

Reported by

Farms, timberland and other nonfinancial specialty assets can offer compelling financial benefits, while helping to diversify a broader investment portfolio, according to the 2025 Bank of America “Specialty Asset Management Outlook.”

Exploring the evolving market dynamics affecting commercial real estate, farmland, timberland and energy assets, the paper highlighted how real assets are playing an increasingly important role in portfolio diversification, particularly as investors look to position themselves for long-term wealth creation during a rapidly changing market landscape. The bottom line, according to SAM, is that 2025 is expected to provide attractive prospects for well-informed, long-term investors who seek to add real assets to their investment portfolios.

For more stories like this, sign up for the PLANADVISERdash daily newsletter.

“Characteristics of real assets, such as generally being uncorrelated with traditional investments and serving as a hedge against inflation, are increasingly relevant in the current environment,” said Ken Shepard, a SAM executive at Bank of America Private Bank, in a statement. “For well-informed, long-term investors, 2025 will be a good year to selectively build positions in certain real asset sectors.”

The SAM Outlook took a closer look at four key specialty asset classes: commercial real estate, farmland, timberland and energy.

Commercial Real Estate—Signs of a Turnaround
According to the SAM report, elevated interest rates and high construction costs have sharply reduced new building activity, tightened supply and potentially benefiting existing CRE assets.

Apartments are moving past a supply surplus, with demand supported by low unemployment, shifting demographics and high homeownership costs. In self-storage, rents fell again in 2024, but the decline is slowing—November 2024 showed a 2.4% year-over-year drop in advertised rates. Retail remains strong, with limited new development and steady demand sustaining high occupancy. Offices, however, continue to face headwinds across fundamentals, capital markets and loans.

Encouragingly, the National Council of Real Estate Investment Fiduciaries Property Index rose slightly in the fourth quarter of 2024, and while appreciation has been negative for more than two years, consistent income returns are helping to stabilize performance—suggesting CRE may finally be turning a corner.

Farmland—Evolving, Yet Resilient
After several years of strong gains, farmland values are expected to hold steady or soften slightly in 2025 as the market adjusts to a new normal, according to the SAM report. Even with this shift, farmland continues to stand out as a stable, long-term investment option.

For investors looking to diversify and add resilience to their portfolios, farmland offers a practical and compelling opportunity. Beyond its historical stability, the sector is benefiting from developments such as advances in agricultural technology, growing sustainability efforts and emerging income sources such as carbon credits and renewable energy. As the broader economy continues to shift, farmland remains a unique asset class that can help support both growth and stability in a well-rounded portfolio.

Timberland—Strong Fundamentals, Steady Returns
Timberland stands out as an attractive option for investors seeking low- to moderate-risk alternatives to traditional asset classes, according to the SAM report. A distinct advantage is biological tree growth, which occurs independently of market cycles, providing a natural hedge against economic volatility.

This biological growth, along with timberland’s central role in the sustainable production of wood products, supports the asset’s long-term return potential. Additional benefits include inflation protection, favorable tax treatment and the ability to help reduce overall portfolio volatility.

While timber production remains the foundation of returns, the asset class is expanding its value proposition. New and growing revenue opportunities such as carbon credits, conservation agreements and recreational leases are adding sources of income and diversification. Historically, timberland has delivered stable performance. In 2024, that consistency held firm: The NCREIF Timberland Index posted a 9.9% total return, driven by 7.8% appreciation and 2.1% income.

Energy—Demand Accelerates With AI Growth
U.S. electricity demand is projected to rise 4.7% over the next five years, nearly double last year’s 2.6% forecast, according to filings with the Federal Energy Regulatory Commission. The primary driver is surging power needs from AI data centers. This increase, combined with broader electrification efforts and the reshoring of U.S. manufacturing, is expected to end a decade-long trend of flat U.S. power demand.

At the same time, global energy consumption continues to rise, driven by population growth, increased manufacturing and rising living standards in developing economies. As demand grows, renewable sources like wind and solar are expected to expand rapidly, supported by global decarbonization efforts.

Still, traditional oil and gas remain dominant, supplying more than 75% of global primary energy consumption today. While crude oil markets may face pressure from softening long-term demand, natural gas is well positioned as a transitional fuel—offering reliability, affordability and cleaner emissions than other fossil fuels.

«