Provident Bank, the oldest community-focused financial institution in New Jersey, released its 2026 Consumer Survey Thursday, painting a stark picture of a state and nation grappling with “persistent inflation” and a “stalled” housing market.
The data, released from the bank’s Iselin headquarters, reveals that the rising cost of basic necessities has officially overtaken traditional milestones—like saving for the future or paying off long-term debt—as the top financial priority for more than one in three residents.
According to the survey, 64% of consumers are “extremely or very concerned” about the current cost of living. While groceries (63%) and gasoline (46%) remain the primary stressors, a new financial pain point has emerged: insurance premiums.
The survey found that 66% of respondents reported moderate to significant hikes in auto insurance over the last year, with nearly 60% seeing similar jumps in homeowners insurance. This “insurance squeeze” is forcing consumers to become more transactional; 40% stated they would switch providers immediately to secure a lower rate if costs continue to climb.
For New Jerseyans looking to enter the real estate market or upgrade their homes, the news is particularly grim. The “lock-in effect”—where homeowners refuse to sell because their current mortgage rates are significantly lower than today’s elevated rates—is paralyzing local activity.
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Buying delays: Nearly 20% of consumers are actively delaying a home purchase specifically due to high mortgage rates.
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The seller gap: Just over 11% of homeowners want to sell but are “staying put” to keep their existing low-interest loans.
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Self-directed research: Interestingly, the way residents shop for homes is shifting. Over a quarter of prospective buyers are now researching mortgage options independently online, more than double the number of people who have contacted their bank directly for guidance.
With credit card APRs reaching levels that 46% of older adults (age 55+) describe as “unfair,” consumers are aggressively changing their spending habits. 32% of respondents are now paying down debt faster to avoid interest accrual, while 21% have stopped using credit cards for non-essential purchases entirely.
“We’re seeing customers respond thoughtfully by reducing discretionary spending, prioritizing debt, and delaying major purchases,” Anthony Labozzetta, president & CEO of Provident Bank said. “This reinforces our responsibility to provide the guidance and support they need to navigate today’s economic environment with confidence.”
One of the most significant findings in the report is the demand for better financial literacy. While 58% of consumers consider financial education programs essential when choosing a bank, only 29% find their current bank’s offerings to be helpful.
The demand is highest among younger residents, with 83% of Gen-Z and 73% of Millennials stating that a bank’s educational resources are a deciding factor in where they keep their money.
“At a time when consumers are asking more from their banks, we’re committed to showing up with the resources and support they need,” Renee Altomonte, executive vice president and Retail Banking director at Provident Bank said.
