At the national level, the middle class is typically defined as households that earn between two-thirds and double the household median income. Based on 2023 figures, that means those with an annual income between $53,740 and $161,220.
Compared to its peak, inflation in the U.S. has eased substantially. According to the Bureau of Labor Statistics, the annual rate of inflation was 2.4% in September, as measured by the consumer price index. But that hasn’t necessarily led to a dramatic decline in prices; in many categories, consumers have only seen costs rising more slowly.
As of June, 65% of middle-class Americans said they were struggling financially and didn’t expect their situation to improve for the rest of their lives, according to a survey from the National True Cost of Living Coalition.
“Financially, things have been a struggle,” said Kyle Connolly, a mother of three making a middle-class income in Pensacola, Florida. “This past month I was left with $125 in my checking account and that’s it.”
Housing costs, child care, and health care are among the significant expenses putting pressure on middle-class families.
Three-quarters of middle-income families said they are actively cutting back on non-essential expenses, with 73% finding it difficult to save for the future, according to the most recent survey by Primerica.
“In their own neighborhoods and in their own lives, they have their own expectations for what they can do, where they can go, where they can eat, where they can live,” said Bradley Hardy, a professor of public policy at Georgetown University. “And to the degree that they’re facing those pressures, on an individual basis, it is causing quite a bit of an alarm.”
Watch the video above to discover what’s making life unaffordable for middle-class Americans.