Pew: Middle-Class Definition Shrinks as Living Costs Outpace Income Gains

Middle-class definition tightens in 2024 as inflation outpaces income growth. Using the Pew Research Center's 2024 national median household income of $83,730, a three-person middle-class household earns between $55,262 and $167,460. After adjusting for 2022 dollars, the cost of living varies regionally: Jackson, Tennessee is 13% below the national average while San Francisco-Oakland-Berkeley is 18% above. Pew estimates 51% of U.S. adults were middle class in 2023, down from 61% in 1971, with the lower and upper classes rising to 30% and 19%, respectively. Being middle class depends on location, family size, debt levels, savings, and retirement security. Smart strategies include budgeting, retirement contributions, and building an emergency fund.