Are You Middle Class? No, You’re Not. Here’s Why.
Washington, D.C. – August 22, 2025 – The term “middle class” is a staple of American discourse, often invoked by politicians, economists, and everyday people to describe a broad swath of the population. But defining who qualifies as middle class in 2025 is trickier than it seems, and many who identify as such may not fit the economic or social criteria. Here’s a breakdown of why you might not be middle class, despite what you think, based on income, wealth, lifestyle, and economic realities.
The Middle-Class Myth: Income Alone Doesn’t Cut It
The middle class is often defined by income, but the thresholds vary widely depending on location, family size, and economic context. According to the Pew Research Center, middle-class households in the U.S. are those earning between two-thirds and double the median household income, which was $81,060 in 2023, the most recent year with comprehensive data. For a family of three, this translates to roughly $54,000 to $162,000 annually. However, inflation, rising housing costs, and regional disparities complicate this picture.
- Urban vs. Rural Realities: In high-cost cities like San Francisco or New York, a household earning $100,000 may struggle to afford basics like housing, childcare, and healthcare, making them feel far from “middle class.” Conversely, in rural areas of states like Mississippi, $60,000 can afford a comfortable lifestyle. The Economic Policy Institute’s 2023 Family Budget Calculator estimates that a family of four in urban areas needs $96,000 to $120,000 for a modest but secure lifestyle, pushing many “middle-income” earners into a precarious lower tier.
- Inflation’s Bite: Since 2020, inflation has eroded purchasing power. By July 2025, consumer prices were 3.2% higher than the previous year, with housing and healthcare costs outpacing wages. Real median household income, adjusted for inflation, has stagnated since 2019, meaning many who were middle class a decade ago now struggle to maintain that status.
If your household income falls below the local cost-of-living threshold or you’re spending over 30% of your income on housing (a common financial strain indicator), you may not be middle class, even if your income technically fits the range.
Wealth, Not Just Income
Income is only part of the equation. Wealth—savings, investments, and assets—plays a critical role in middle-class security. The Federal Reserve’s 2022 Survey of Consumer Finances (the latest available) shows the median net worth for middle-class households (those in the 40th to 60th income percentiles) was about $188,200, far below the $1 million often associated with “wealthy” status but significantly above the $12,700 median for the bottom 20%.
- Debt Burden: Student loan debt, which hit $1.77 trillion in 2025, and credit card debt, averaging $6,501 per household, weigh heavily on younger Americans. If you’re drowning in debt with little savings or home equity, you’re likely not middle class, as financial stability is a hallmark of the designation.
- Homeownership Gap: Owning a home, a traditional middle-class milestone, is increasingly out of reach. The National Association of Realtors reported the median home price in June 2025 was $419,300, requiring an income of about $110,000 to afford in many markets. Renters, who make up 36% of U.S. households, often face rents that consume 40–50% of their income, further eroding middle-class status.
If you lack significant savings, investments, or home equity, you may fall into the working class or lower, regardless of your paycheck.
Lifestyle and Expectations
The middle class is as much a lifestyle as an economic category, characterized by financial security, access to education, healthcare, and discretionary spending. However, shifting economic realities have redefined what’s attainable.
- Squeezed by Costs: Middle-class families traditionally could afford college, healthcare, and vacations without crippling debt. In 2025, college tuition has risen 180% since 1980 (inflation-adjusted), and out-of-pocket healthcare costs average $1,200 per person annually. If you’re cutting corners on these essentials, you’re not living the middle-class dream.
- Job Insecurity: The middle class once relied on stable, white-collar or unionized jobs. Today, gig work and contract jobs, which lack benefits, make up 16% of the workforce, per 2024 BLS data. If your job lacks security or benefits, you’re closer to the working class, even with a decent salary.
Political Narratives and Trump’s Influence
President Trump’s economic policies, including 30% tariffs on EU imports and tightened immigration rules, have reshaped the middle-class landscape. While his administration claims tariffs protect American jobs, critics argue they’ve driven up consumer prices, with a 2025 study from the Peterson Institute estimating a $2,600 annual cost increase per household. Posts on X reflect mixed sentiment: supporters like @ScottBessent praise tariff revenues, while detractors like @EconTalker highlight job losses in retail and manufacturing, with July 2025’s jobs report showing only 73,000 jobs added, down from earlier estimates.
Trump’s narrative that the middle class is “thriving” clashes with data showing declining consumer confidence (66.4 in July 2025, per the Conference Board) and a 4.2% unemployment rate. If you’re feeling pinched despite a “middle-class” income, these macroeconomic pressures may explain why.
Why You Might Not Be Middle Class
Here’s the hard truth: you’re likely not middle class if you:
- Spend over 30% of your income on housing or can’t afford to buy a home.
- Have less than $10,000 in savings or are burdened by high-interest debt.
- Can’t afford healthcare, education, or retirement savings without financial strain.
- Rely on unstable or low-benefit jobs, like gig work or non-unionized labor.
- Live in a high-cost area where your income doesn’t stretch to a secure lifestyle.
The middle class is shrinking—Pew Research notes it fell from 61% of U.S. adults in 1971 to 50% in 2020. Many who identify as middle class are closer to the working class or upper class, depending on their wealth and regional costs. For example, a $150,000 income in San Francisco may barely cover basics, while the same in rural Ohio affords a comfortable life.
Conclusion
The middle-class label is more aspirational than accurate for many Americans in 2025. Skyrocketing costs, stagnant wages, and eroding wealth have redefined economic boundaries, leaving millions in a gray area between working class and true financial security. If you’re struggling to save, own a home, or plan for the future, you may not be middle class, no matter what your income suggests. Understanding your true economic position—beyond the nostalgia of the “middle-class” ideal—can help you navigate today’s complex financial landscape.
For more on economic trends, visit PewResearch.org or BLS.gov.