This too is a question that I’ve kind of been pondering in the midst of the millions great resignation think piece.
I assume there is a great contraction of spending somewhere? Maybe in the rent space? One thing I have found very interesting in American society is how living on one’s own is treated as a necessity rather than luxury, or at least it was until a couple of recessions ago.
A - the uber-wealthy are only getting richer
but also
B - there is an oddity of living spaces (and the auto indsutry) when it comes to spending......I'm going to set aside buying, because that requires X-amount of money to put down (which many don't have) plus taking out amassive loan (which most can't and some don't want to) and focus on renting.
If you want to live very cheaply, but aren't poor, you're shit out of luck. There's the average market price for a rental at one end and the cheap level of housing for the poor. But there's nothing in-between (as you astutely pointed out, if you want to live alone).
I see a parallel in the car-buying market. You can buy a new car for at least $10,000 or more, which you'd take out a loan (if you qualify) or you can buy a cheap car for (realistcally) $3 or 4,000. But there's not much in the middle.
Anyone who could throw down $7,500 cash can afford to finance and anyone wanting a decent car, but is poor won't have that much cash to spend.
Now the answer to both situations may simply be "the market," but I'll ask it anyway......why isn't there decent, cheap housing and why isn't there financing for inexpensive cars?