If the USA is anything like Canada, and I don't know if it is, then there there was a "missing middle" in terms of pandemic support.
Here in Canada, if you qualified for CERB, or had social spending (or other luxury spending) cut back, then you're among those who were likely to have saved more or paid down existing debt. For those who did not qualify for CERB, and did not have much pre-existing social/luxury spending, then the pandemic likely hurt them financially. And now with inflation...
Like most safety net items, there is a missing middle that makes too much to qualify for support but needs that support to make ends meet. I was close for most of the pandemic as the household earned just enough to miss most basic support options beyond the food bank but not enough to do more than subsist, which is incredibly depressing. Then all costs are going up so a steeper hill to climb this year barring a raise or new job. My work has great benefits/etc, and before the reorg more opportunity, so it's hard to jump.
Cost of housing numbers includes imputed rent, which is money you pay to yourself, and so makes you richer. (if you're a homeowner)
IIRC a lot of new people became homeowners in 2020 or relocated somewhere cheaper, which is a positive sign. If rent is going up, that should be fixed by building more housing, which the admin is working on.
Like GP is talking about insurmountable debt, but the stats show people actually paid down debt/saved money during the pandemic.
I can't disagree that doomsday journalism has a played a role here.