Mickey Lyons is waiting to book his next vacation – at least until the prices drop.
“I can’t believe I’m saying this,” said the 53-year-old Detroit resident. “But I’m thinking of driving across the border to Windsor, Ontario, and taking a 12-hour train ride to Montreal rather than deal with the airport hassles.”
Lyons is a case study for the growing 2026 holiday debate – Are you better off flying, driving, or staying? – long security lines are not the only thing that worries Americans. The sudden onset of the Iran war has shaken prices, mortgage rates, and the overall economic outlook in what was expected to be another year for the US economy.
In March, Business Insider heard from many frustrated travelers, exhausted airport workers, concerned economists, and cautious investors dealing with the ongoing effects of yet another war in the Middle East and partial government collapse. After a period of optimism that the economy would stabilize, another month caused chaos for the rest of the year. For those planning a trip, looking to change jobs, or buy a home, 2026 has just taken an unfavorable turn.
Economic March madness
Jobs, rents and prices were disrupted
Although DHS says it will begin paying TSA agents, it will take months to get back on track. Additionally, rising oil prices due to the Iran war are only the beginning of the inflationary effects, as higher fuel prices raise prices for everything from flights and shipping to grocery stores.
Americans may have no choice but to tighten their seat belts. Costs may rise for food, electricity and other goods if the war continues: The Organization for Economic Co-operation and Development said it expects US inflation to average 4.2% this year, almost double the annual inflation rate of 2.4% reported in February.
That’s part of why the Federal Reserve was confident in its recent economic optimism, and is likely to hold rates steady again in April to curb inflation.
In anticipation of hot price growth, mortgage rates are rising again after a steady decline in the 30-year fixed rate. Job seekers stuck in the “Great Freeze” low-rent market probably won’t feel any relief anytime soon. The latest jobs report showed staggering losses across various white- and blue-collar sectors after months of growth.
On Wall Street, March has sparked rumors of a recession, especially if the war with Iran and federal budget cuts continue. Household wealth is also set to drop by $1.5 trillion this quarter, said one estimate by Pantheon Macroeconomics, as markets hit Americans’ portfolios and cut spending faster. A key indicator of consumer confidence fell to its lowest level since December.
Each of the scores is a bellwether for the health of the American economy, and all signs point to a rocky spring and summer. DHS plan to pay TSA will gradually shorten security lines, but cost increases likely stay longer.
For many visitors, the hardest thing is not knowing when it will end. Bazela Malik, an accountant based in Florida, said her trip from LaGuardia to Fort Lauderdale turned into a nightmare over 24 hours that included two missed flights and several expensive Ubers. Megan Walsh, a writer from New York City, said she waited in a four-hour airport line when she returned from New Orleans after her sister’s vacation.
“You know the game, ‘Snake?’ It was like that — the call was paying for itself,” Walsh said. “We couldn’t tell where the end of the line was; there were loops and loops of people.”
Alexandra Karplus contributed to the report.