Here's How Much the Definition of Middle Class Changed Since Biden's First Day in 2021
But the data only shows the percentage of middle-class households remaining. What it doesn't indicate is what the middle-class lifestyle actually looks like today or how much you need to still make a comfortable living in the U.S.
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'Since 2021, the definition of middle class in the U.S. hasn't changed that much on paper, but the reality of these changes feels much different for a lot of people,' said Kristy Kim, personal finance expert and CEO at TomoCredit.
According to Pew Research Center, middle-class households are those who earn between two-thirds and double the U.S. median household income — adjusted for household size and region.
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The latest U.S. Census data found that the median household income in 2023 was $80,610. Using this figure and ignoring household size and region, you'd be considered 'middle class' if you earn between $53,740 and $161,220.
The U.S. median household income in 2021, meanwhile, was $70,784. This means households earning between $47,189 and $141,568 would have been considered 'middle class' around the time Biden became president.
So, those are the numbers. But the actual cost of living has risen significantly in the past four years or so.
Take groceries as an example. Food prices rose by 3.9% annually right before Biden entered office. But then in March 2024, the latest data available by the BLS, prices had risen by over 25%. This means $100 worth of groceries before the presidential election would now cost a little more than $125.
Housing costs have also skyrocketed. According to the Federal Reserve's latest data, the median sales price of homes sold in the U.S. was $419,200 in Q4 2024. In Q1 2021, the median sales price was $355,000 — $64,200 less.
'What used to feel like a comfortable income now barely covers the basics in many parts of the country,' Kim said. 'Rising costs of housing, healthcare and everyday living essentials have stretched budgets super thin, making it harder for families to maintain the lifestyle that used to define the middle class.'
Exacerbating the issue — and further defining these more recent changes to the middle class — is the fact that wages simply haven't kept up with rising costs.
'While wages have gone up, inflation has steadily outpaced those gains, meaning even people earning well into six figures in certain cities feel like they're just scraping by,' Kim explained. 'The middle class isn't necessarily shrinking — it's just feeling a lot tighter.'
According to the Social Security Administration's latest data, the national average wage index was $66,622 in 2023. Back in 2021, it was $60,575. That's only a $6,047 difference.
Being considered 'middle class' isn't just about falling within certain income thresholds. Where you live has a major impact on how much money you need to live comfortably.
For example, $100,000 will go a lot further in a small town than it will in a metropolitan area. According to Kim, middle-class households should also be able to pay for the following without majorly struggling:
Housing (ideally with a manageable or no mortgage)
Savings for emergencies
Retirement savings
Discretionary spending like dining out or traveling
Other things that should be covered include healthcare and education.
Though the numbers have changed since Biden's first day in office in 2021, the definition itself remains much the same.
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