Oct 29, 2025
While we adhere to strict editorial guidelines, partners on this page may provide us earnings.
Just a few years ago, earning six figures was considered a status symbol. But now, the vast majority of Americans with this income simply consider themselves “middle class.”
According to a 2024 Gallup survey, a whopping 77% of Americans who earned $100,000 or more considered themselves either lower- or upper-middle class. Surprisingly, 17% of them even categorized themselves as working class.
Advertisement
But does this popular perception align with the financial reality of living in America? The answer may depend on how you define middle class. Here are two common approaches to measuring your status.
Thanks for subscribing!
Read the best of Moneywise in 5 minutes or less.
By signing up, you accept Moneywise Terms of Use, Subscription Agreement, and Privacy Policy.
Lifestyle-based approach
For many people, the term middle class is synonymous with a comfortable yet modest standard of living. In other words, if you can afford basic needs, you would be considered middle class.
Due to inflation and other factors, basic needs have become increasingly expensive, and the most expensive one, housing, looks unattainable. As of 2025, the average homebuyer needs to earn $112,131 per year to afford the median-priced home, according to Redfin. That’s $25,000 higher than the median income.
Despite the costs, 65% of American homeowners view owning a house as a minimum requirement for being middle class.
If this seems reasonable, then $112,131 is your personal benchmark. However, there is another method to compare your financial status to the rest of the country.
Must Read
- The ultra-rich use these 5 real estate strategies to build wealth while they sleep — you can start with just $100
- Here’s the average income of Americans by age in 2026. Are you keeping up or falling behind?
- Insurance companies profit most from drivers who auto-renew without shopping around. Comparing 100+ quotes takes 2 minutes and costs nothing
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Income-based approach
Instead of the vagaries of lifestyle, Americans and statisticians prefer a numbers approach. For example, the Pew Research Center defines the middle class as households that earn between two-thirds to double the median household income.
Advertisement
SmartAsset calculated that the average salary range for the middle class is $49,478 to $148,450 across the 100 largest cities in America. This is based on a median income of $74,225.
The advantage of numbers is that they’re more clearly definable than social status. Housing, cars and even food can fluctuate more than salaries in any given industry or community.
This could help avoid lifestyle creep, which is the subconscious increase in spending that occurs as your income rises. Instead of trying to keep up with the Joneses by buying a bigger home or more cars, you adjust your lifestyle and expectations based on how much you actually earn. This allows you to live below your means, even when housing values and car prices surge.
Bottom line
There’s no standard definition of middle class. For some, it’s a big house in the suburbs, while for others, it’s peace of mind. What’s clear is that the American dream is becoming increasingly unattainable for many Americans.
If you’re looking for a comfortable lifestyle on a modest income that’s less than six figures, you could consider moving to a more affordable city or even forgoing lifestyle decisions, such as buying a home.
You May Also Like
- JP Morgan sees gold hitting $6,000/oz before 2027 — and a Gold IRA lets you hold the physical metal while deferring the tax bill. Get your free guide from Priority Gold
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
- Millionaires under 43 are reshaping investing — just 25% of their portfolios are in stocks. Here’s where their money is going
Vishesh Raisinghani is a financial journalist covering personal finance, investing and the global economy. He's also the founder of Sharpe Ascension Inc., a content marketing agency focused on investment firms. His work has appeared in Moneywise, Yahoo Finance!, Motley Fool, Seeking Alpha, Mergers & Acquisitions Magazine and Piggybank.
