Median household income hit a record high of 87,000 yuan last year

After five years of battling inflation, U.S. median household income finally surpassed pre-pandemic levels last year. On the 15th, the Census Bureau reported that, after adjusting for inflation, median household income rose by a solid 2.6% year-over-year to reach $87,460—an all-time high that exceeded the 2019 figure of $85,320.

According to the Associated Press, although the income of the typical American household now exceeds pre-pandemic levels, the growth over the six-year period has been quite limited. This starkly illustrates how rising prices over the past five years have constrained Americans’ incomes and purchasing power, helping to explain the generally negative public sentiment regarding the economy since the COVID-19 outbreak in early 2020.

Median household income represents the income level at the midpoint when household incomes are ranked from highest to lowest; half of all households earn more than this figure, while the other half earn less.

According to census data, household income has risen by 2.5% since 2019. However, in the six years prior to that—from 2013 to 2019—income grew by 19%, driven by very low inflation and declining unemployment.

Broken down by ethnic group, Asian households had the highest median income at $126,300, an increase of 1.6%. Income for white households rose 2.9% to $96,710, and for Hispanic households, it grew 1.1% to $73,260; Black households saw the largest gain, with income rising 4.8% to $59,980.

Census Bureau data also indicates that, despite income growth across most income brackets, income inequality in the United States remained severe last year. The top 10% of earners saw their income rise by 1.7% to $261,300, while the income of the bottom 10% dipped slightly, remaining just above $20,000. The income of the top 10% was more than 13 times that of the lowest-earning households—a ratio exceeding the 12.7 figure recorded in 2024 (the all-time high for the wealth gap was 13.5 in 2021).

According to the Census Bureau report, women’s earnings grew by 3.2% last year, while men’s earnings saw a slight decline. This significant growth in women’s earnings narrowed the gender pay gap, though the disparity remains substantial: for every dollar earned by men, women earned approximately 84 cents—up from just under 81 cents in 2024.