Affordability is reshaping the economic landscape in the United States. Rising costs for housing, healthcare, childcare, and basic necessities have outpaced earnings in many communities, fueling widespread concern about economic mobility and long-term security.

These pressures underscore a long-standing belief at HCAP: investing in underserved businesses and strengthening job quality is essential to building durable economic opportunity. Quality jobs that provide stability, fair compensation, and pathways for advancement support both resilient businesses and sustainable livelihoods.

Recent research and polling show that a majority of Americans now believe a middle-class lifestyle is increasingly out of reach¹, and nearly 70% question whether the American dream still holds true². This spans generations, education levels, and income brackets. At the same time, more than half of U.S. families lack the resources to meet the costs required to live securely, as essential expenses have risen faster than earnings in recent years³. The strain is not limited to low-income households. In every major metropolitan area, many middle-class families also struggle to afford basic necessities⁴. Compounding these pressures, the American Job Quality Study found that 60% of U.S. workers lack quality jobs, resulting in lower well-being and satisfaction, and negatively impacting retention, productivity, and business performance⁵.

For decades, HCAP has focused on investing in underserved businesses located in and hiring from low- to moderate-income (LMI) communities. These companies are often overlooked by traditional capital but play an essential role in local economies. Through our Gainful Jobs Approach™, we work alongside management teams to strengthen workplace practices in ways that help companies achieve their objectives. By prioritizing workers as part of operational strategy, we help businesses enhance retention, engagement, and long-term performance while supporting employees’ ability to afford their everyday lives and build for the future.

This year’s report examines the growing affordability challenge in the U.S. and highlights key findings from the American Job Quality Study, the first national study of job quality across the U.S. economy. It also provides portfolio updates across HCAP IV and V; features a spotlight on Arosa and a case study on Simplified Environmental Solutions (SES); highlights our continued focus on healthcare investments, including Puzzle Healthcare; and includes updates on the HCAP Employee Assistance Fund, industry engagement, and field-building.

While economic pressures persist, our commitment remains steady. We are grateful for your partnership as we continue to invest in businesses that strengthen communities, create quality jobs, and support pathways to long-term economic opportunity. 

    — The HCAP Partners Team

¹ Voters See a Middle-Class Lifestyle as Drifting Out of Reach, Poll Finds. The New York Times, Jan 2026.
² Americans Lose Faith That Hard Work Leads to Economic Gains, WSJ–NORC Poll Finds. The Wall Street Journal, Sept 2025.
³ The American Affordability Tracker. Urban Institute, Oct 2025.
⁴ In Every Corner of the Country, the Middle Class Struggles with Affordability. Brookings Institution, Dec 2025.
⁵ The American Job Quality Study. Gallup, Jobs for the Future, The Families & Workers Fund, and W.E. Upjohn Institute, Oct 2025.