The majority of people in the work force make their greatest income strides between the ages of 30 and 35, with median income jumping by 26% during that short time-frame. While the median annual household income for a household with a householder having an associate degree was $51,970, the median annual household income for householders with a bachelor's degree or higher was $73,446. Household income also increased significantly with the educational attainment of the householder. William Thompson and Joseph Hickey[citation needed] see common incomes for the upper class as those exceeding $500,000 with upper middle class incomes ranging from the high 5-figures to most commonly in excess of $100,000. Year-round full-time workers with a professional degree had an average income of $109,600 while those with a master's degree had an average income of $62,300. Top-level executives, celebrities, heirs; income of $500,000+ common. Family income is average for a family of two or more related people living in a household. Table DP-3 (for American Samoa / Guam / Northern Mariana Islands / U.S. Virgin Islands). Profit from additional features by authenticating your Admin account. New Gallup global income data estimate the median household income across 131 countries at $9,733, and median per-capita income at $2,920. [55], As of 2017, the median household income ranged from $19,775 in Puerto Rico to $82,336 in the District of Columbia. This was the fourth consecutive year with a statistically significant increase by their measure. [20] However, once adjusted for household size and looking at taxes from an after-tax perspective, real median household income grew 46%, representing significant growth. This compares with the Census' growth of 10%. Household income and education do not, however, always reflect perceived class status correctly. However, despite an increase in median disposable income overall, disposable income grew at a slower rate for the richest … The most important – or, at least, most closely watched – income statistics are: Median household income; Average household income; Top 1% household income; Of these, median household income is the most important statistic. The late-2000s recession began with the bursting of the U.S. housing bubble, which caused a problem in the dangerously exposed sub prime-mortgage market. They can be related by birth, marriage, or adoption. [20] However, once adjusted for household size and looking at taxes from an after-tax perspective, real median household income grew 46%, representing significant growth.[21]. [citation needed], White Americans made up roughly 75.1% of all people in 2000,[38] 87.93% of all households in the top 5% were headed by a person who identified as being White alone. We also have research on individual incomes and incomes by age. facts. That’s the highest level ever and a gain of $4,144, or 6.8%, since Mr. Trump took office. Household income in the United States varies substantially with the age of the person who heads the household. Semi-professionals and craftsmen with a roughly average standard of living. In 2018, Puerto Rico had a population of 3.2M people with a median age of 42.9 and a median household income of $20,296. They claim the lower middle class ranges from $35,000 to $75,000; $16,000 to $30,000 for the working class and less than $2,000 for the lower class. Voters can be critical of their government if they perceive that their cost of living is rising faster than their income. Median Sales Price Of Houses. Incomes in the 10 wealthiest countries are more than 50 times those in the 10 poorest. Generally have college degrees. They were also expected to receive an "average signing bonus of $17,428. [44] These data were not adjusted for preferential differences among men and women whom attend college. Unlike the Census measure of household income, the CBO showed income before and after taxes, and by also taking into account household size. Median adjusted personal income per capita varied from $39,901 in Mississippi to $61,601 in Connecticut (and $64,363 in the District of Columbia). Some high school education. Profile of Selected Economic Characteristics: 2010. [49], The group with the second highest median household income, were households headed by persons between the ages 35 and 44 with a median income of $56,785, followed by those in the age group between 55 and 64 with $50,400. African-American or Black households had the lowest median household income of all races with $30,134. The highest and lowest points of the median household income are presented in bold face. [63] Note that Puerto Rico is not included in this table, and is instead included in the table above (because Puerto Rico is included in the ACS, as if it were a state). According to the Census Bureau's 2016 data, white non-Hispanic households had a median income of $65,041 while Hispanic and black households had median incomes of $47,675 and $40,065 respectively. Then you can access your favorite statistics via the star in the header. Multi-millionaires whose incomes commonly exceed $350,000; includes celebrities and powerful executives/politicians. The $100K Threshold College-educated workers with considerably higher-than-average incomes and compensation; a man making $57,000 and a woman making $40,000 may be typical. Over one quarter, 28.5%, of all income was earned by the top 8%, those households earning more than $150,000 a year. Use at the aggregate level: Summaries of household incomes across groups of people – often the entire country – are also studied as part of economic trends like standard of living and distribution of income and wealth. [49], While median household income has a tendency to increase up to four persons per household, it declines for households beyond four persons. It is commonly used by the United States government and private institutions to describe a household's economic status or to track economic trends in the US. Most have some college education and are white-collar. According to the St. Louis Federal Reserve, the median sales price of houses sold in Q22020 was $313,200. This indicates a shift in income from labor (persons who derive income from hourly wages and salaries) to capital (persons who derive income via ownership of businesses, land and assets). Semi-professionals and craftsmen with some work autonomy; household incomes commonly range from $35,000 to $75,000. $39 per month* The distribution of U.S. household income has become more unequal since around 1980, with the income share received by the top 1% trending upward from around 10% or less over the 1953–1981 period to over 20% by 2007. This trend is common across the developed world, due in part to globalization. [34] As a result, the mean will be higher than the median income, with the top earning households boosting it. Income also increased substantially with increased post-secondary education. Currently, the median age ranges from a low of about 15 in Uganda and Gaza Strip to 40 or more in several European countries and Japan. Ivy League education common. For example, in the state of Alabama in 2004, two-person households had a median income of $39,755, with $48,957 for three-person households, $54,338 for four-person households, $50,905 for five-person households, $45,435 for six-person households, with seven-or-more-person households having the second lowest median income of only $42,471. Household Income Benchmarks in 2020. [36] In 2008, all households in the United States earned roughly $12,442.2 billion. Real median household income between 2017 and 2018 increased for households across most age groups. High school education. The top 3.65%, with incomes over $200,000, earned 17.5%. In the top five percent the percentage of Asians was nearly twice as high as the percentage of Asians among the general population. Between 2017 and 2018 the population of West Virginia declined from 1.82M to 1.81M, a -0.552% decrease and its median household income grew from $43,469 to $44,097, a 1.44% increase. and over 1 Mio. The states closest to the national average were California and Vermont, at $48,384 and $47,971 respectively.[62]. Note that the U.S. Census Bureau treats Puerto Rico as if it were a state (Puerto Rico is included in the American Community Survey). Typically, some college education. According to Leonard Beeghley[citation needed] a household income of roughly $95,000 would be typical of a dual-earner middle class household while $60,000 would be typical of a dual-earner working class household and $18,000 typical for an impoverished household. Please log in to access our additional functions, *Duration: 12 months, billed annually, single license, The ideal entry-level account for individual users. The US Census Bureau also provides a breakdown by self-identified ethnic groups as follows (as of March 2018): Median income is the amount which divides the income distribution into two equal groups, half having income above that amount, and half having income below that amount. (September 15, 2020). The bottom 10%, using the same measure, saw higher growth than the median (40%).[21]. [37] One half, 49.98%, of all income in the US was earned by households with an income over $100,000, the top twenty percent. The median 401(k) retirement balance is low. [40], Household income as well as per capita income in the United States rise significantly as the educational attainment increases. Your support ID is: 6172144068579143546. [26] Also, the CBO definition of income is much broader, and includes in kind transfers as well as all monetary transfers from the government. [52] Each figure represents a decline from the previous year. [30], A study on US Census income data claims that when using the national accounting methodology, U.S. gross median household income was $57,739 in 2010 (table 3). Households headed by people who identified as being Asian alone were also overrepresented among the top two quintiles. According to the CBO, between 1979 and 2011, gross median household income, adjusted for inflation, rose from $59,400 to $75,200, or 26.5%. The average for an advanced degree was $72,824, with men averaging $90,761 and women averaging $50,756 annually. : 2018", "Emmanuel Saez-Income and Wealth Inequality-October 2014", "This Chart Shows Just How (Un)Equal Things Are During A 'Champion' Of The 99%'s Administration", "Fed Says Growth Lifts the Affluent, Leaving Behind Everyone Else", United States Department of Housing and Urban Development, "U.S. Household Incomes Rose to Record in 2016 as Poverty Fell", "The American Middle Class Hasn't Gotten a Raise in 15 Years", "Will US Economy Ever Be As Good As in the '90s? Since 1980, U.S. gross domestic product (GDP) per capita has increased 67%,[28] while median household income has only increased by 15%. U.S. Between 1979 and 2011, gross median household income, adjusted for inflation, rose from $59,400 to $75,200, or 26.5%. This page was last edited on 18 December 2020, at 01:18. [41][47] Since 2003, median income has continued to rise for the nation as a whole, with the biggest gains going to those with associate degrees, bachelor's degree or more, and master's degrees. While California's median income was not near enough to afford the average California home or even a starter home, West Virginia, which had one of the nation's lowest median household incomes, also had the nation's lowest median home price.[53][55]. [17] The marketplace has made a trade-off: expanding benefits packages vs. increasing wages. This feature is limited to our corporate solutions. Another line of analysis, known as "total compensation," presents a more complete picture of real wages. In 2018, West Virginia had a population of 1.81M people with a median age of 42.8 and a median household income of $44,097. Overall, the mean household income in the United States, according to the US Census Bureau 2014 Annual Social and Economic Supplement, was $72,641.[35]. Please create an employee account to be able to mark statistics as favorites. You likely won't be able to live off your 401(k) alone in retirement, but you should be able to combine your 401(k) with alternative savings, other passive investments, and Social Security to live a financially free life when the time comes to withdraw at the age of 59.5. [49] The highest median household income was found among households headed by working baby-boomers. When grouped by Census Bureau Region, of the 15 states that, in 2017, had the highest median household income, only Minnesota is located in the Mid-West. U.S. Census Bureau. Facebook: number of monthly active users worldwide 2008-2020, Smartphone market share worldwide by vendor 2009-2020, Number of apps available in leading app stores 2020, Profit from additional features with an Employee Account. Total compensation has fallen from approximately 58% GDP in 1970 to 53% GDP in 2013.[19]. Some high school education. Median household income reports the amount of money earned by the household that falls exactly in the middle of pack. Quick Analysis with our professional Research Service: Content Marketing & Information Design for your projects: Number of households by household income U.S. 2019, Value of debt held by families in the U.S. 2016, by age of family head, Poverty rate in the United States 1990-2019, Child poverty rate in the United States 1990-2019. Please contact us to get started with full access to dossiers, forecasts, studies and international data. [9] As households tend to share a similar economic context, the use of household income remains among the most widely accepted measures of income. You only have access to basic statistics. Standard of living varies depending on number of income earners, but is commonly just adequate. However, most of the poverty in the South is located in rural areas. Clerical and most blue-collar workers whose work is highly routinized. Measured relative to GDP, total compensation and its component wages and salaries have been declining since 1970. Highly-educated (often with graduate degrees), most commonly salaried, professionals and middle management with large work autonomy. Clerical, pink- and blue-collar workers with often low job security; common household incomes range from $16,000 to $30,000. Household income is one of the most commonly used measures of income and, therefore, also one of the most prominent indicators of social class. In 2018, the total personal income earned in the United States was $17.6 trillion. [5] After falling somewhat due to the Great Recession in 2008 and 2009, inequality rose again during the economic recovery, a typical pattern historically. These figures support the general assumption that median household income as well as the median income per member of household peaked among those households headed by middle aged persons, increasing with the age of the householder and the size of the household until the householder reaches the age of 64. American FactFinder. The nonpartisan Congressional Budget Office conducted a study analyzing household income throughout the income distribution, by combining the Census and IRS income data sources. Those who occupy poorly-paid positions or rely on government transfers. Unlike the median household income, which divides all households in two halves, the mean income is the average income earned by American households. Last Revised: September 26, 2019 [33] The mean income is more affected by the relatively unequal distribution of income which tilts towards the top. [29] In the meantime, GDP per capita has increased by 33.8% or 1.33% annually. Corporate solution including all features. Mean income (average) is the amount obtained by dividing the total aggregate income of a group by the number of units in that group. [32], Another common measurement of personal income is the mean household income. Overview and forecasts on trending topics, Key figures and rankings about brands and companies, Consumer insights and preferences in various industries, Detailed information about political and social topics, All key figures about regions and countries, Everything you need to know about Consumer Goods, Identify market potentials of the digital future, Technology Market Outlook ", US Census Bureau, Median household income in the United States from 1990 to 2019 (in 2019 U.S. dollars) Statista, https://www.statista.com/statistics/200838/median-household-income-in-the-united-states/ (last visited February 20, 2021), Median household income in the United States from 1990 to 2019, Number of people living below the poverty line U.S. 1990-2019, Number of families in poverty in the U.S. 1990-2019, Poverty rate for families in the U.S. 1990-2019, Number of people living below the poverty line, by state U.S. 2019, Poverty rate in the United States by state 2019, Poverty rate in the United States by ethnic group 2019, Median household income in the United States 1990-2019, Median household income in the United States by state 2019, Median household income in the United States by age 2019, Median household income in the United States by education of householder 2019, Median household income in the United States by race or ethnic group 2019, Household income U.S. - comparison of the lowest quintile and top 5 percent 2019, Household income in the U.S. - shares of quintiles 1970-2019, U.S. household income distribution, by Gini-coefficient 1990-2019, U.S. income distribution of individual earnings, by Gini-coefficient 1990-2019, Gap between rich and poor, by state in the U.S. 2019, Gini index for income distribution equality for U.S. households, by race/origin 2019, Gini index for income distribution equality for U.S. families, by race/origin 2019, Gini Index - countries with the greatest income distribution equality 2017, U.S. gender wage gap for the 20 most common occupations for men 2019, Household income of white families U.S. 1990-2019, Household income in the U.S. - percentage distribution 2006-2019, Household income of black families U.S. 1990-2019, Household income of Asian families U.S. 2002-2019, Median family income in the United States 1990-2019, Hispanic household share of 100k+ income households in the U.S. from 2007 to 2019, Median annual family income in Canada, by province 2018, Distribution of Hispanic workers' earnings in the U.S. 2012, Distribution of Hispanic households in the U.S. 2012, by total money income, Median annual family income in Canada 2000-2018, Canada: average annual earnings of full-year, full-time workers 1990-2011, Canada: percentage distribution of income 2018, Number of households Australia FY 2018, by income per week, Canada: median total income, by gender 2000-2018, Salary range of mobile developers by level of experience in Australia 2019, Median household income in the U.S. 1970-2014, by income tier, Sales director in chemical industry salary per annum South Korea 2019-2020, Chile: distribution of household income 2016, by employment, Change in household income in the U.S. by age between 1967 and 2010, Private health insurance in the United States, Median household income in the United States from 1990 to 2019 (in 2019 U.S. dollars), Find your information in our database containing over 20,000 reports, Tools and Tutorials explained in our Media Centre, median household income in the United States varies from state to state, state with the widest gap between the rich and the poor. Households with annual incomes from $50,000 to $75,000, 18.2% of households, earned 16.5% of all income. Please authenticate by going to "My account" → "Administration". Ivy League education common. Bureau of Economic Analysis: Regional Data. On this page is the United States average household income by year and median household income by year between 1968 and 2020. Chart. That the size of a household is not commonly taken into account in such measures may distort any analysis of fluctuations within or among the household income categories, and may render direct comparisons between quintiles difficult or even impossible. This in turn triggered a global financial crisis. As noted in the op-ed, authored by Stephen Moore, real median household income is at an all-time high: “Real median household income—the amount earned by those in the very middle—hit $65,084 (in 2019 dollars) for the 12 months ending in July. The state with the highest median household income in the United States as of the US Census Bureau 2009 is Maryland with $69,272, followed by New Jersey, Connecticut and Alaska, making the Northeastern United States the wealthiest area by income in the entire country.[51]. And computers took over for humans in many manufacturing, clerical, and administrative tasks, eroding middle-class jobs growth and suppressing wages."[16]. Median household income is a politically sensitive indicator. Households headed by persons between the ages of 45 and 54 had a median household income of $61,111 and a mean household income of $77,634. Dollars). [3] Estimates for previous years are given in terms of real income, which have been adjusted for changes to the price of goods and services. [6][7], A household's income can be calculated in various ways but the US Census as of 2009 measured it in the following manner: the income of every resident of that house that is over the age of 15, including pre-tax wages and salaries, along with any pre-tax personal business, investment, or other recurring sources of income, as well as any kind of governmental entitlement such as unemployment insurance, social security, disability payments or child support payments received. Five are in the Northeast (Connecticut, Massachusetts, New Hampshire, New Jersey and Rhode Island), three are South Atlantic states (Washington D.C., Maryland and Virginia) while the remaining six are in the West (Alaska, California, Colorado, Hawaii, Washington and Utah). The means and medians for households and families are based on all households and families. High-school dropouts fared worse with negative growth. For information on the income of individuals, see, Parts of this article (those related to documentation) need to be. [10] The US Census does not include noncash benefits such as health benefits. Household income is an economic standard that can be applied to one household, or aggregated across a large group such as a county, city, or the whole country. "Median household income in the United States from 1990 to 2019 (in 2019 U.S. Overall, "…[a]verage earnings ranged from $18,900 for high school dropouts to $25,900 for high school graduates, $45,400 for college graduates and $99,300 for workers with professional degrees (M.D., O.D., D.P.T., D.P.M., D.O., J.D., Pharm.D., D.D.S., or D.V.M.)."[44]. The aggregate income measures the combined income earned by all persons in a particular income group. In the case of mean income, the income of all households is divided by the number of all households. It's more commonly known as income per capita. Not surprisingly the lowest income group was composed of those households headed by individuals younger than 24, followed by those headed by persons over the age of 75. Household income can be studied across time, region, education level, race/ethnicity, and many other dimensions. The highest median income per member of household was among those between the ages of 54 and 64 with $30,544 [The reason this figure is lower than the next group is because pensions and Social Security add to income while a portion of older individuals also have work-related income.]. All data is in 2003 dollars and only applies to householders whose householder is aged twenty-five or older. The lifetime earnings gap between males and females was the smallest for those individuals holding an associate degrees with male life-time earnings being 27.77% higher than those of females. The statistic shows the median household income in the United States in 2019, by age of householder. New, Everything you need to know about the industry development, Find studies from all around the internet. (billed annually). The median income per member of household for this particular group was $27,924. For an area that has five households with incomes of $10,000, $35,000, $40,000, $47,000 and $250,000, the median income is $40,000. The biggest income difference was between those with some college education and those who had a Bachelor's degree, with the latter making $23,874 more annually. Alongside this, average earnings and median household disposable income also grew when adjusted for inflation. [49], Households headed by persons between the ages of 45 and 54 had a median household income of $61,111 and a mean household income of $77,634. [50], Considering other racial and geographical differences in regards to household income, it should come as no surprise that the median household income varies with race, size of household and geography. As an indicator of economic trends, it may be studied along with related economic measures such as disposable income, debt, household net worth (which includes debt and investments, durable goods like cars and houses), wealth, and employment statistics. Accessed February 20, 2021. https://www.statista.com/statistics/200838/median-household-income-in-the-united-states/, US Census Bureau. It was highest for those ages 45 to 64 ($75,289) and those ages 25 to 44 ($68,817). The CPS is the recommended source for national-level estimates, whereas the ACS gives estimates for many geographic levels. Household income as an economic measure can be represented as a median, a mean, a distribution, and other ways. In calculating median income, the Census Bureau looks at the incomes of only those people who are 15 or older. Sociologist Dennis Gilbert acknowledges that "... the class structure... does not exactly match the distribution of household income" with "the mismatch [being] greatest in the middle..." (Gilbert, 1998: 92) As social classes commonly overlap, it is not possible to define exact class boundaries. [14], Changes in median income reflect several trends: the aging of the population, changing patterns in work and schooling, and the evolving makeup of the American family, as well as long- and short-term trends in the economy itself. High economic insecurity and risk of poverty. Please enable JavaScript to view the page content. I've also included a household income by year calculator for you to compare household income centile rank for … [20] Extreme poverty in the United States, meaning households living on less than $2 per person per day before government benefits, more than doubled in absolute terms from 636,000 to 1.46 million households (including 2.8 million children) between 1996 and 2011, with most of this increase occurring between late 2008 and early 2011.[25]. Median inflation-adjusted ("real") household income generally increases and decreases with the business cycle, declining in each year during the periods 1979 through 1983, 1990 through 1993, 2000 through 2004 and 2008 through 2012, while rising in each of the intervening years. See the entry for "Age structure" for the importance of a young versus an older age structure and, by implication, a low versus a higher median age. Reliant on government transfers. Despite having the highest median home price in the nation[53] and home prices that far outpaced incomes,[54] California ranked only eighth in income that year, with a median household income of $59,984. The US Census Bureau publishes educational attainment and income data for all households with a householder who was aged twenty-five or older. The following table shows the median household income according to the educational attainment of the householder. However, analysis of different working age groups indicate a similar pattern of stagnating median income as well. The typical young adult (18–34 years old) of either race has little wealth, but the gap rises quickly with age, and for 65–74-year-olds accumulates to $302,500 in median … [2][4] According to the ACS, the U.S. median household income in 2018 was $61,937. Then you will be able to mark statistics as favourites and use personal statistics alerts. With retirement income replacing salaries and the size of the household declining, the median household income decreases as well. In 2007, the median household income by state ranged from $36,338 in Mississippi to $68,080 in Maryland. Therefore, the real median household would need to earn $104,440 to follow my 30/30/3 home buying rule.. Conversely, it appears the real median household may have violated my rule and spent 4.6X its household income to buy a median … An economic recession will normally cause household incomes to decrease, often by as much as 10%. Top-level executives, high-rung politicians, heirs. [39] Overall, households headed by Hispanics and African Americans were underrepresented in the top two quintiles and overrepresented in the bottom two quintiles. Are you interested in testing our corporate solutions? Individuals with graduate degrees have an average per capita income exceeding the median household income of married couple families among the general population ($63,813 annually). In, US Census Bureau. Overall, households headed by persons above the age of seventy-five had a median household income of $20,467 with the median household income per member of household being $18,645. New, Figures and insights about the advertising and media world, Industry Outlook Those with limited or no participation in the labor force. A key measure of household income is the median income, at which half of households have income above that level and half below. Metropolitan areas such as Atlanta, Nashville, Charlotte, Raleigh, Birmingham, Dallas, Houston, and Miami are areas within the southern states that have above average income levels.