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.
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.
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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.
Read more: Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
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.
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.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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