2026 ALICE Report Reveals Impact of Affordability Crisis in the Capital Region
ALBANY, N.Y., Sept. 14, 2026 - More than one in three Capital Region households struggle to afford basic expenses, according to the 2026 State of ALICE Report. ALICE® — Asset Limited, Income Constrained, Employed — represents households that earn above the Federal Poverty Level but still do not make enough to afford the basic cost of living where they live. In the Capital Region, 36% of households fall below the ALICE Threshold.
The central challenge for ALICE families continues to be the gap between wages and the increasing cost of living. Key findings, along with regional and state data, were discussed Monday with leaders in health care, food access, and childcare at ALICE: The True Cost of Economic Security, hosted by United Way of the Greater Capital Region.
The regional trend extends across New York, where nearly half of all households are living paycheck-to-paycheck. An estimated 48% of employed New York households, more than 3.74 million households, are facing financial hardships. The report supports United Way’s work to close the affordability gap and unlock opportunity across the Capital Region. United Way works with community partners to help all children get a strong start and create pathways for families to achieve greater financial security.
“ALICE gives us a clearer picture of what financial hardship looks like in our communities,” said Peter Gannon, President and CEO of United Way of the Greater Capital Region. “Many of our neighbors are working every day in jobs our communities depend on, yet many are still forced to make difficult choices between childcare, food, housing, utilities and other basic needs. Understanding that gap helps us focus on solutions that give more families a path to financial stability.”
The True Cost of Economic Security
After a deep dive into the data for the Capital Region and New York State, local leaders held a panel discussion on changes affecting working families over the last year and the impact on affordability for local households.
Panelists Included:
Dr. Amanda Duff
Executive Director, Healthy Capital District
Krista Hesdorfer
Director of Public Affairs, Hunger Solutions New York
Dede Hill
Vice President of Policy, Schuyler Center for Analysis and Advocacy
Moderated by: Claire Reid
Chief Impact Officer, United Way of the Greater Capital Region
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From L to R: Dede Hill, Claire Reid, Dr. Amanda Duff, Krista Hesdorfer
Key Findings:
The cost of basic necessities outpaces overall inflation. The ALICE Essentials Index, which tracks the cost of housing, childcare, food, transportation, healthcare, and technology, increased 5.6% between 2021 and 2024 in New York, compared with 5.0% for the Consumer Price Index (CPI), highlighting the growing financial pressure on working families.
Workers in the accommodation and food service industries faced the highest rate of hardship, with 44% living in households below the ALICE Threshold.
Despite increases in minimum wage, ALICE data shows a wage of $20 per hour was not enough to support the ALICE Household Survival Budget for one adult and one school-age child in any New York county. (See: United for Alice Wage Tool)
Older adults are facing growing financial pressures. Between 2010 and 2024, households headed by someone age 65 or older grew by 44%, and the number of seniors living below the ALICE Threshold increased substantially.
The ALICE report highlights that the number of workers in New York grew from 8,344,020 to 9,541,880, according to the Bureau of Labor Statistics, from 2010 to 2024. At the same time, the labor market continues to evolve with advances in technology, including the rise of artificial intelligence, the growth of gig-work, and hourly employment structures. These employment factors can create greater income instability for families.
“Behind every ALICE statistic we share is a family making impossible decisions day to day. Families are having to choose between buying groceries or paying for rent. Parents struggle to afford childcare and put gas in the car. The Federal Poverty Level is a severely outdated measure for economic stability. The ALICE data helps us better understand as a community how best to respond and where our investments can have the greatest impact," said Claire Reid, Chief Impact Officer, United Way of the Greater Capital Region.