What is happening to the middle class in America?

America's middle class is shrinking as a share of the population, facing declining income growth relative to the wealthy, and struggling with soaring costs for housing, healthcare, and education, making traditional milestones harder to reach despite some overall economic gains. While some studies show the middle class is richer in absolute terms, increased income inequality means higher earners have seen faster growth, and many middle-income families can't afford basic necessities in expensive areas.

What is happening to the middle class in the US?

The United States is home to some of the most expensive cities in the world, and middle-class residents are struggling to afford a decent life for themselves and their families. According to our latest analysis, one-third of the American middle class cannot afford the cost of basic necessities as of 2023.

Is the middle class increasing or decreasing?

The good news is that Americans have never been richer. The bad news is that most of them don't feel like it. There has been tremendous growth in income and wealth in the US in the last half century, even for poorer and middle-class households.

What is the decline of the middle class?

The share of adults who live in middle-class households fell from 61% in 1971 to 50% in 2021, according to a new Pew Research Center analysis of government data.

What is considered middle class in America right now?

Middle-class in America is generally defined by income as households earning between two-thirds and double the national median income, adjusted for household size, though figures vary by location and source, often falling roughly between $50,000 and $170,000 annually, with higher costs of living in cities raising these thresholds significantly. It also involves education (college degrees common), occupation (skilled jobs), and values like independence, requiring more than just a high salary to feel financially secure due to rising costs.
 

America’s Cost of Living Is Crushing the Middle Class — Quietly

Are you middle class if you make $100,000 a year?

According to Pew Research Center, for a three-person household the “middle-income” range in 2022 dollars was about $56,600 to $169,800. A household earning $100,000 places you squarely in the middle-income range under that definition — you're not lower-income, but neither are you upper class.

What percentage of Americans make over $150,000?

A third of US American families now have an income over $150,000 (adjusted for inflation of course).

Is $40,000 a year considered poor?

A $40,000 salary is classified as lower-middle class, which is defined as households that earn between $30,001 and $58,020 a year.

Why are so many Americans struggling financially?

Many Americans struggle financially due to a combination of high costs (housing, healthcare, education, groceries) outpacing wage growth, significant consumer debt (credit cards, student loans), stagnant middle-class incomes, and a lack of savings, all exacerbated by recent high inflation and a widening gap between high- and low-income earners. This affordability crisis leaves many living paycheck-to-paycheck, unable to build financial security despite working,. 

What income is no longer middle class?

The upper bound of what's considered middle class for households exceeds $100,000 in every U.S. state, according to a SmartAsset analysis of 2023 income data, the most recent available from the U.S. Census Bureau.

Is $30,000 a year considered poverty?

Yes, $30,000 a year is considered at or below the poverty level for a family of four in the US, but for a single person, it's generally above the poverty line but still considered low income, especially in high-cost areas, as it depends heavily on family size, location, and living expenses. While a single person earning $30k might manage in low-cost areas, it often qualifies for some government assistance and is near the low-income threshold for programs like health insurance subsidies. 

Is $70,000 a year considered middle class?

Yes, $70,000 a year generally falls within the middle-class income range nationally, but it depends heavily on household size and location, feeling like lower-middle class in high-cost cities where it might not cover rent and necessities comfortably, while being a solid middle-class income in less expensive areas. The Pew Research Center defines middle class as two-thirds to double the median household income, placing it broadly in the $50k-$170k range, but local cost of living (like California vs. a rural state) drastically shifts what $70k can buy. 

What jobs are considered middle class?

Middle-class jobs are diverse, spanning professions requiring degrees (teachers, engineers, nurses, accountants, managers) and skilled trades (technicians, electricians, plumbers), defined less by the specific job title and more by the household income falling within a range (roughly 2/3 to double the median income, about $56k-$170k for a 3-person household in 2022) adjusted for local costs, encompassing roles in education, tech, healthcare, business, and trades. 

What is causing the decline of America?

Shrinking military advantages, deficit spending, geopolitical overreach, and a shift in moral, social, and behavioral conditions have been associated with American decline.

How much does the average middle class person have in savings?

The average middle-class person's savings vary, but recent data shows the median bank account balance is around $8,000, while the average (mean) is much higher at about $25,000-$44,000 for middle-income brackets, reflecting a wide range of savings, with many having less than $1,000 and some having significant retirement funds. For example, households earning $60k-$90k have a median of $7,400 in bank accounts, but higher income groups (>$90k) have significantly more, with medians over $15,000, showing how income impacts savings. 

What state is #1 in poverty?

Mississippi consistently ranks as the U.S. state with the highest poverty rate, often followed closely by states like Louisiana, New Mexico, West Virginia, and Kentucky, though rankings shift slightly by year and data source (Official vs. Supplemental Poverty Measure). Mississippi struggles with low median incomes, low educational attainment, and high rates of child poverty, making it the poorest state by several metrics, according to World Population Review and other sources.
 

Can you live comfortably on $1000 a month?

Surviving on $1,000 a month requires careful budgeting, prioritizing essential expenses, and finding ways to save money. Cutting down on housing costs by sharing living spaces or finding affordable options is crucial. Utilizing public transportation or opting for a bike can help save on transportation expenses.

What is the $27.40 rule?

The $27.40 Rule is a personal finance strategy to save $10,000 in one year by consistently setting aside $27.40 every single day ($27.40 x 365 days = $10,001). It's a simple way to reach a large financial goal by breaking it down into small, manageable daily habits, making saving feel less intimidating and more achievable by cutting small, unnecessary expenses like daily coffees or lunches.
 

Can I buy a home if I make $40,000 a year?

If you earn around $40,000 per year, the kind of house you can afford typically depends on your debt, down payment, and local housing costs, but generally, you could afford a home mortgage loan of around $120,000.

What jobs pay around $40K a year?

A $40K per year salary is often associated with entry-level roles or positions in industries such as retail management, administrative support, customer service, healthcare support, and skilled trades. These jobs typically provide a foundation for developing important workplace skills and gaining experience.

What is the top 1 income in the world?

To be in the global top 1% by income, you generally need to earn well into the six figures, with some sources suggesting over $34,000 USD puts you there, while for wealth, thresholds are much higher (over $1 million+), with countries like Monaco and Switzerland having the highest entry points, showing a huge disparity between national averages and global standards. The exact income threshold varies greatly by country and data source, but it's significantly lower in developing nations compared to the U.S. or Europe.
 

How rare is a 150K salary?

A $150k salary is relatively rare but not elite, placing you in the top 10-12% of U.S. earners, well above median income, yet it can feel middle-class in high-cost areas due to inflation and housing costs. While significant, it's not "rich" (top 1% needs ~$785k+) but puts you in the upper-middle-class bracket in most locations, with the actual feel depending heavily on your state and living expenses. 

What is the average disposable income in the US?

The average disposable income in the U.S. is around $64,000 per person annually as of late 2024/early 2025, with figures like $64,423 (per capita, 2024) from the St. Louis Fed and an OECD estimate of $62,722 (2023 data) for gross disposable income per capita showing growth from prior years. This represents income after taxes, available for spending or saving, with recent data showing continued increases due to wage growth and moderated inflation.