Consumer confidence falls sharply at the start of the year, reaching its lowest level since 2014 as households expressed growing concern about jobs, income and the broader economy.
According to the latest survey from the Conference Board, confidence weakened across both current conditions and future expectations. Respondents reported rising anxiety about inflation, affordability and financial security, even as interest rates have moderated and financial markets remain relatively stable.
The decline was broad-based across income levels and age groups, signaling that caution is becoming more entrenched rather than limited to a specific demographic. Economists view the shift as a meaningful signal that households are reassessing spending and long-term commitments amid persistent cost pressures.
Households Grow More Cautious
Survey results show that fewer consumers believe business conditions and job availability are improving. Expectations for income growth also softened, reflecting concerns that wage gains may not keep pace with everyday expenses.
Rising costs for housing, food and insurance continue to weigh heavily on household budgets. Even as inflation has eased from recent peaks, many families report that prices remain high enough to limit discretionary spending and savings.
This growing caution often leads consumers to delay major purchases, scale back travel and reduce nonessential expenses. When consumer confidence falls to sustained lows, economists say it can act as a drag on economic growth by slowing demand across multiple sectors.
Housing Market Implications
Consumer confidence falling translates into more deliberate behavior in the housing market. Potential buyers tend to take longer to make decisions, scrutinize monthly payments more closely and become less willing to stretch budgets.
Slower household formation is another common outcome. Younger adults may postpone moving out or purchasing homes, while existing homeowners are less likely to upgrade or relocate unless necessary.
These dynamics are especially relevant in higher-cost states such as California, where affordability already presents a significant barrier. Even modest increases in borrowing costs or living expenses can have an outsized effect on buyer sentiment.
Local Impact In The San Gabriel Valley
In the San Gabriel Valley, the confidence decline aligns with recent trends seen by local real estate professionals. Buyers in cities such as El Monte, Baldwin Park and Rosemead remain active, but they are approaching transactions with greater caution.
Homes that are priced accurately and offer long-term value continue to attract interest. Properties that appear overpriced or require significant additional investment face more resistance and longer decision timelines.
Renters are also reassessing budgets, with many opting to stay in place longer rather than absorb higher housing costs. That behavior can influence both rental turnover and future homeownership rates in the region.
Outlook For The Months Ahead
Economists note that confidence can rebound quickly if inflation pressures ease further or labor market conditions improve. For now, the data suggest households are preparing for uncertainty rather than expansion.
For policymakers and local leaders, the confidence slide underscores the importance of addressing affordability and economic stability. For residents, it reflects a shared sense of caution shaping financial decisions in early 2026.
More information on the survey methodology and national results is available at https://www.conference-board.org.
