Median Household Income of Married Couples Tops $100,000

The median household income of married couples has grown by leaps and bounds over the past half century, according to the Census Bureau's Current Population Survey. Take a look at the trend...

Median household income of married couples, 1970 to 2020 (in 2020 dollars)

2020: $101,240

2010:   $85,950

2000:   $89,081

1990:   $76,847

1980:   $69,405

1970:   $62,734

Between 1970 and 2020, the median household income of married couples grew by a huge 61 percent, after adjusting for inflation. In comparison, the median income of all households grew by a smaller 30 percent during those years. 

What accounts for the surge in the median income of married couples? Some of the increase—especially in the 1970s and 1980s—was due to the rise of dual-earner couples as a share of all married couples. Another factor is the rising income of women. Between 1970 and 2020, the median earnings of women who work full-time climbed 85 percent, after adjusting for inflation. The median earnings of their male counterparts grew just 13 percent during that time period. 

Perhaps the biggest factor boosting the incomes of married couples in recent years is what is called the marriage market. In the marriage market, the most desirable mates are those who make the most money. Among men, the married share ranges from a low of 33 percent among those with personal incomes below $25,000 to a high of 78 percent among those with incomes of $100,000 or more. The comparable figures for women are 41 and 67 percent. The marriage market explains the outsized gains for married couples.

Source: Demo Memo analysis of the Census Bureau's Current Population Survey

Median Household Income in 2020: $67,521

One of the most closely watched economic statistics was released yesterday by the Census Bureau. According to the 2021 Current Population Survey (CPS) fielded in March 2021 (which asks about income in the previous year), median household income in 2020 was $67,521. This is 2.9 percent below the record high median of $69,560 in 2019, after adjusting for inflation. Here is the trend in median household income over the years...

Median household income for selected years (in 2020 dollars)

2020: $67,521

2019: $69,560 (record high)

2018: $65,127

2012: $57,623 (post Great Recession low)

2010: $58,627

2000: $63,292

1999: $63,423 (previous record high)

But there's a problem with both the 2020 and 2021 medians. Remember the low response rate to the 2020 Current Population Survey, fielded in March 2020, as everything shut down because of the coronavirus pandemic? The response rate was just 73 percent—a good 10 percentage points lower than normal. Even worse, higher-income households were more likely than lower-income households to respond to the survey. No wonder median household income in 2019 leaped up by 6.8 percent—a bigger one-year increase than ever before in CPS history dating back to 1967. The Census Bureau published a working paper about the problem (Coronavirus Infects Surveys, Too: Nonresponse Bias during the Pandemic in the CPS ASEC). In the paper, bureau analysts Jonathan Rothbaum and Adam Bee adjusted the 2019 median for nonresponse bias. After the adjustment, they estimated median household income in 2019 to be a smaller $66,790—but still the highest ever recorded by the CPS.

What about the median income number released yesterday? Unfortunately, the March 2021 CPS has the same problems, according to an analysis by Rothbaum and Charles Hokayem (How Did the Pandemic Affect Survey Response: Using Administrative Data to Evaluate Nonresponse in the 2021 Current Population Survey Annual Social and Economic Supplement). While the survey response rate rose to 76 percent, it was still well below normal. Not only that, but "nonresponse bias in 2021 looks more like it did in 2020 than in prepandemic years," Rothbaum and Hokayem report. Consequently, they estimate the 2021 median to be about 2 percent lower than the $67,521 shown above. The good news is that even after the adjustment median household income in 2021 is about the same as the adjusted 2019 median—in other words, surprisingly close to a record high.

Source: Demo Memo analysis of Income, Poverty and Health Insurance Coverage in the United States: 2020

31% Expect to Lose Employment Income Soon

The coronavirus pandemic is getting worse. Daily new cases, hospitalizations, and deaths are at all-time highs. The vaccine rollout is fatally slow. Cold weather and the winter surge has driven the public back into hiding. It should have come as no surprise, then, that nonfarm payroll employment fell by 140,000 in December, according to the Bureau of Labor Statistics. This is the first decline in payroll employment since April. 

It also should come as no surprise that a growing share of the public expects to lose employment income in the next four weeks (personally, or someone in their household). Thirty-one percent of Americans aged 18 or older have been telling the Census Bureau since mid-November that they expect to lose employment income soon, according to the Household Pulse Survey fielded December 9-21. The December job numbers prove them right.

Expect self or household member to lose employment income in next 4 weeks

Nov 11-Dec 21: 31% 

Sept 30-Oct 26: 24% (low)

April 23-May 5: 39% (high)

Source: Demo Memo analysis of the Census Bureau's Household Pulse Survey

24% Expect to Lose Employment Income in Next Four Weeks

In the final week of September, nearly one in four Americans aged 18 or older expected that they or someone in their household would lose employment income in the next four weeks—before the November 3 presidential election. Nearly half (46 percent) had already experienced a loss of employment income in their household since March 13, 2020. These results are from the Census Bureau's Household Pulse Survey, which is tracking the impact of the coronavirus pandemic on the American public. The latest survey was fielded during the week of September 16-28. Here are the percentages who expected to lose income by age group...

Percent who expect a loss of employment income in household in next four weeks

Total 18-plus: 24.0%

Aged 18 to 24: 21.7%

Aged 25 to 39: 27.2%

Aged 40 to 54: 27.9%

Aged 55 to 64: 25.3%

Aged 65-plus: 15.1%

A substantial share of the population is expecting the axe to fall regardless of demographic characteristic. By education, the percentage of adults who say their household's employment income will decline in the next four weeks ranges from a high of 36 percent among those without a high school diploma to a still substantial 18 percent among people with a bachelor's degree. By household income, the figure ranges from a high of 35 percent among those with incomes below $25,000 to a significant 16 percent of those with household incomes of $100,000 or more. 

Such widespread financial distress is likely to be a big factor on election day. 

Source: Census Bureau, Week 15 Household Pulse Survey: September 16—September 28

Median Household Income in 2019: $68,703

Every year demographers anxiously await the Census Bureau's release of income statistics from the Current Population Survey. This year, not so much. In the midst of the Covid-19 Recession, the treasure trove of data has lost much of its predictive power. But still, wow. Median household income soared to a record high of $68,703 in 2019. The median increased by 6.8 percent between 2018 and 2019, after adjusting for inflation. This is the biggest one-year increase in the history of the series dating back to 1967. 

Or is it? Could the coronavirus pandemic of 2020 have caused the outsized increase in median household income in 2019? It doesn't seem possible, but the answer is yes, according to Census Bureau analysts Jonathan Rothbaum and Adam Bee. Here's why... 

The Census Bureau fields the Annual Social and Economic Supplement to the Current Population Survey in March of each year, with respondents asked to report their income for the previous year. The income statistics for 2019 were collected in March 2020—in the middle of the coronavirus pandemic. Not surprisingly, survey response rates were abnormally low—10 percentage points lower in March 2020 than in the same month of 2019. When Rothbaum and Bee analyzed response rates by demographic characteristic, they discovered that higher-income households were more likely than lower-income households to respond to the CPS during the pandemic. This nonresponse bias inflated the estimate of household income. 

After adjusting for nonresponse bias, median household income in 2019 is an estimated $66,790 rather than the published and official figure of $68,703. The adjustment reduces the 2018–19 increase in median household income to a more modest 3.9 percent rather than 6.8 percent. 

The good news is that median household income in 2019 is still the highest on record, even after the adjustment for nonresponse bias. The 3.9 percent increase in median household income between 2018 and 2019 may not have been the biggest on record, but it was still pretty big—in the 93rd percentile of annual increases. "The adjusted estimates would indicate that 2019 (from the 2020 CPS ASEC) was still a very good year for income," the researchers conclude.

Source: Census Bureau, Coronavirus Infects Surveys, Too: Nonresponse Bias during the Pandemic in the CPS ASEC

Income Losses Widespread by Metro, State

Americans everywhere have been badly hurt by the coronavirus pandemic, according to the Census Bureau's Household Pulse Survey. Among all adults aged 18 or older, 48 percent say they or a member of their household has experienced an employment income loss since March 13. By metropolitan area, the figure ranges from a low of 41 percent in Washington, DC, to a high of 60 percent in Los Angeles...

Percent of adults in 15 largest metros with household employment income loss since March 13 
50.3% in Atlanta
48.5% in Boston
48.8% in Chicago
49.9% in Dallas
57.5% in Detroit
52.9% in Houston
59.6% in Los Angeles
57.5% in Miami
55.2% in New York
50.4% in Philadelphia
47.1% in Phoenix
59.2% in Riverside-San Bernardino
54.8% in San Francisco
49.2% in Seattle
40.8% in Washington, DC

By state, the percentage of adults whose household has experienced an employment income loss ranges from lows of 36 to 37 percent in Nebraska, North Dakota, South Dakota, Utah, and Wyoming to highs of 54 to 56 percent in California, Michigan, Nevada, and New York.

Source: Census Bureau, Household Pulse Survey Week 6 (June 4-9)

Covid-19 Wreaks Economic Havoc

The enormous economic impact of the coronavirus pandemic is laid bare by the Census Bureau's new Household Pulse Survey, which is tracking the impact of the pandemic on the American public week by week. Among adults in households with children under age 18, the 55 percent majority say they or someone else in the household have experienced a loss of employment income since March 13, according to the May 14-19 wave of the survey. Among adults in households without children, 44 percent have experienced such a loss.

The percentage of Americans who report a loss of employment income since March 13 exceeds 50 percent in every age group under age 55...

Percent experiencing a loss of employment income for self or other household member
Total 18-plus: 48%
Aged 18 to 24: 58%
Aged 25 to 39: 54%
Aged 40 to 54: 56%
Aged 55 to 64: 49%
Aged 65-plus: 27%

By race and Hispanic origin, 60 percent of Hispanics have experienced a loss of employment income. The figure is 55 percent for Blacks, 47 percent for Asians, and 44 percent for non-Hispanic Whites.

Most adults with household incomes below $50,000 have experienced a loss of employment income since March 13. The figure falls as household income rises. But even among those in the most affluent households—with incomes of $200,000 or more—a substantial 31 percent have lost employment income during the pandemic.

Source: Census Bureau, Household Pulse Survey: May 14—May 19

Fewer Are Donating to Charity

In the past year, 73 percent of Americans aged 18 or older say they donated money to charitable organizations, according to a Gallup survey. This is a record low, below the previous low of 79 percent during the Great Recession. But Covid-19 may have influenced responses to the survey, Gallup cautions. Gallup fielded the survey from April 14-28. Although the survey asked about charitable donations over the past year, some respondents may have said what they are currently doing rather than what they have done.

Charitable donations fell the most among lower-income households. Only 56 percent of households with incomes below $40,000 indicated that they had made charitable donations in the past year, fully 17 percentage points lower than the last time Gallup asked the question in 2017. Among households with incomes of $100,000 or more, the percentage donating money fell by just 5 percentage points during the same time period—from 92 to 87 percent.

When asked whether they will give more or less money to charity in the next year, 25 percent say they will give more. Another 66 percent said they will give the same amount. Just 7 percent will give less. "The duration and severity of the economic downturn will be a key factor in whether Americans are able to fulfill those intentions," Gallup concludes.

Source: Gallup, Percentage of Americans Donating to Charity at New Low

Millennial Wealth Is Below Expectations

The income and wealth of Millennials is lagging behind that of older generations at the same age, according to a study by the Federal Reserve Bank of St. Louis. The study examines the incomes and net worth of older Millennials, defined as those born from 1980 through 1989, and compares them to the finances of older generations when they were the same age.

The median net worth of the typical Millennial household is 34 percent less than expected when compared to older generations. They are behind by $12,000. "For someone at the beginning of adulthood, this is a lofty sum to miss out on," writes Ana H. Kent, a Fed policy analyst and one of the researchers. One of the reasons for the lower net worth of Millennials is that fewer are homeowners. Their homeownership rate is 4 percentage points below expectations.

But Millennials aren't suffering equally. The median household income of those with a bachelor's degree is 7 percent higher than expected, and their median net worth is only 6 percent below expectations—$55,000 versus an expected $58,000. The picture is not as rosy for Millennials without a bachelor's degree. Their median household income is 9 percent below expectations. Even worse, their median net worth is a stunning 44 percent below expectations—$14,000 versus an expected $25,000.

"For this generation of older millennials, having less money than older generations at the same age could be very problematic," concludes Hunt.

Source: Federal Reserve Bank of St. Louis, Are Millennials a Lost Generation Financially? and The Millennial Wealth Gap: Smaller Wallets than Older Generations

Median Household Income Falls in December 2019

Median household income fell between November and December 2019, after adjusting for inflation. The $65,666 December median was 0.8 percent below the November 2019 median, according to Sentier Research. "The relatively large increase in inflation over the past few months has had a negative effect on real median annual household income," explains Sentier. The Sentier estimates are derived from the Census Bureau's Current Population Survey and track the economic wellbeing of households on a monthly basis.

Despite the recent dip, "real median household income has continued to display an upward trend over the past 12 months (up 1.1 percent)," says Sentier's Gordon Green, "and especially since the low point reached in June 2011 (up 16.6 percent)." At the June 2011 low point—two years after the official end of the Great Recession— median household income was just $56,308.  

Sentier's Household Income Index for December 2019 was 105.4 (January 2000 = 100.0). To put this in perspective, the December 2019 median, after adjusting for inflation, was just 5.4 percent higher than the median of January 2000—almost exactly two decades ago. To stay on top of these trends, look for the next monthly update from Sentier.

Source: Sentier Research, Household Income Trends: December 2019

Median Household Income Stable in October 2019

Median household income did not change significantly between September and October 2019, after adjusting for inflation. The $66,465 October median was almost identical to the September 2019 median, according to Sentier Research. Sentier's estimates are derived from the Census Bureau's Current Population Survey and track the economic wellbeing of households on a monthly basis.

"Real median household income has continued to display an upward trend over the past 12 months (up 3.3 percent)," says Sentier's Gordon Green, "and especially since the low point reached in June 2011 (up 18.6 percent)." At the June 2011 low point—two years after the official end of the Great Recession— median household income was just $56,036.  

Sentier's Household Income Index for October 2019 was 107.2 (January 2000 = 100.0). In other words, the October 2019 median, after adjusting for inflation, was just 7.2 percent higher than the median of January 2000—almost two decades ago. To stay on top of these trends, look for the next monthly update from Sentier.

Source: Sentier Research, Household Income Trends: October 2019

Median Household Income Rises in September 2019

The upward trend continues. Median household income climbed 0.4 percent between August and September 2019, after adjusting for inflation. The $66,214 September median was $234 greater than the August 2019 median, according to Sentier Research. Sentier's estimates are derived from the Census Bureau's Current Population Survey and track the economic wellbeing of households on a monthly basis.

"Real median household income continued to display an upward trend over the past 12 months (up 3.3 percent)," says Sentier's Gordon Green, "and especially since the low point reached in June 2011 (up 18.6 percent)." At the June 2011 low point—two years after the official end of the Great Recession— median household income was just $55,841.  

Sentier's Household Income Index for September 2019 was 107.2 (January 2000 = 100.0). "We are at a point now where real median household income is 7.2 percent higher than January 2000, the beginning of this statistical series," says Green. "We have seen a strong positive trend in real median annual household income over the past several years, which is encouraging." To stay on top of these trends, look for the next monthly update from Sentier.

Source: Sentier Research, Household Income Trends: September, 2019

Median Household Income Rises in August 2019

Admit it. It was a disappointment when the Current Population Survey's 2018 median household income estimate, released by the Census Bureau last month, was no higher than the 2017 median, after adjusting for inflation. No need to worry. We already know how things will turn out. The median has been rising month after month during much of 2019, according to Sentier Research, whose Current Population Survey-based estimates track the economic wellbeing of households on a monthly basis. 

Median household income climbed 1.3 percent between July and August 2019, after adjusting for inflation, Sentier reports. The $65,976 August median was 3.4 percent higher than the median a year earlier in August 2018. "Real median household income continued to display an upward trend over the past 12 months," says Sentier's Gordon Green. "We have seen a strong positive trend in real median annual household income, which is encouraging."

Sentier's Household Income Index for August 2019 was 106.8 (January 2000 = 100.0). 

Source: Sentier Research, Household Income Trends: August, 2019

Here's Why Median Household Income Did Not Grow

For a full decade, median household income struggled to return to the pre-Great Recession peak of $62,700 in 2007 (in 2018 dollars). It finally got there in 2017 and stayed there in 2018. Some might question why American households have made no economic progress in more than a decade, but a look at trends in household income by age group reveals that most households have gained ground.

Percent change in median household income by age of householder, 2007 to 2018 (in 2018$)
Total households: 0.8%
Under age 25: 9.7%
Aged 25 to 34: 3.5%
Aged 35 to 44: 4.2%
Aged 45 to 54: 3.4%
Aged 55 to 64: –3.7%
Aged 65 to 74: 16.7%
Aged 75-plus: 20.5%

Note: Percent change calculations between 2007 and 2018 were made after adjusting 2007 median household income to make it comparable to 2018 income as per Census Bureau guidance in: Survey Redesigns Make Comparisons to Years Before 2017 Difficult.

While the overall median did not increase significantly between 2007 and 2018, every age group but one experienced a significant increase, after adjusting for inflation. How could the overall median remain unmoved when almost everyone experienced a gain?

The answer is the changing age structure of the population, thanks to baby boom and baby bust. In 2018, there were many more older householders (with lower incomes) than in 2007 as boomers aged into their sixties and seventies. The share of households headed by people aged 65 or older grew from 21 to 27 percent of the total during those years. Conversely, there were fewer middle-aged householders (in their peak-earning years) in 2018 than in 2007 because the small Generation X was in the 35-to-54 age groups. The share of households headed by 35-to-54-year-olds fell from 40 to just 34 percent during those years. These shifts depressed growth in the overall median and will continue to do so until the large Millennial generation is more of a presence in the peak-earning age groups.

Source: Demo Memo analysis of the Census Bureau's Historical Income Tables: Households

Median Household Income in 2018: $63,179

The good news: median household income is as high as it has ever been, at $63,179 in 2018. The bad news: after adjusting for inflation, median household income in 2018 is no higher than it was in 1999, according to the Census Bureau's Current Population Survey.

You won't be able to spot this fact in the CPS data tables released by the Census Bureau yesterday. That's because 2018 income data are not comparable to data from earlier years. The Census Bureau redesigned the Current Population Survey's income questions beginning in 2014 and data processing methods beginning in 2018. But in an America Counts story, bureau analysts adjusted the overall household median for these changes to allow for a comparison of the 2018 median with earlier medians. The 2018 median, it turns out, is as high but not significantly higher than the 1999 median, after adjusting for inflation.

Why is 2018's median household income almost identical to the median nearly 20 years ago? One big reason is the aging of the large Baby-Boom generation. In 1999, Boomers were in their peak-earning years, boosting the overall household median to a record high. In 2018, the demographic pattern is reversed. Boomers are retiring and living on reduced incomes. Generation X is in the peak-earning years (45 to 54), but with little impact on the overall median because of its small size. Here is median household income by age of householder in 2018...

Median household income by age of householder, 2018
Total households: $63,179
Under age 25: $43,531
Aged 25 to 34: $65,890
Aged 35 to 44: $80,743
Aged 45 to 54: $84,464
Aged 55 to 64: $68,951
Aged 65-plus: $43,696
  Aged 65 to 74: $52,465
  Aged 75-plus: $34,925

Source: Census Bureau, Current Population Survey Tables for Household Income

Median Household Income Rises in July 2019

Median household income climbed 0.7 percent between June and July 2019, after adjusting for inflation. The $65,084 July median was $438 greater than the June 2019 median, according to Sentier Research. Sentier's estimates are derived from the Census Bureau's Current Population Survey and track the economic wellbeing of households on a monthly basis.

"Real median household income continued to display an upward trend over the past 12 months (up 2.3 percent)," says Sentier's Gordon Green, "and especially since the low point reached in June 2011 (up 16.6 percent)." At the June 2011 low point—two years after the official end of the Great Recession— median household income was just $55,798.  

Sentier's Household Income Index for July 2019 was 105.4 (January 2000 = 100.0). In other words, the July 2019 median, after adjusting for inflation, was just 5.4 percent higher than the median of January 2000—almost two decades ago. "Not an impressive performance by any means," says Green. To stay on top of these trends, look for the next monthly update from Sentier.

Source: Sentier Research, Household Income Trends: July 2019

33% Participate in the "Sharing Economy"

Only one-third of internet users participate in the "sharing economy," according to the National Telecommunications and Information Administration's 2017 Internet Use Survey. The NTIA defines the sharing economy (or P2P) as people buying, selling, or trading goods and services with one other through online platforms.

Not surprisingly, internet users who participate in the sharing economy are younger (median age 42) than internet users who don't participate (median age 52). Also not surprisingly, the higher the income, the greater the participation...

P2P participation of internet users by household income, 2019
33% of total internet users
23% of those with incomes below $25,000
27% of those with incomes of $25,000 to $49,999
32% of those with incomes of $50,000 to $74,999
36% of those with incomes of $75,000 to $99,999
47% of those with incomes of $100,000 or more

Requesting services is the most common form of participation in the sharing economy, with higher-income internet users most likely to do this. Fully 39 percent of internet users with household incomes of $100,000 or more had requested services, for example, versus only 16 percent of those with household incomes below $25,000. Among all internet users, 26 percent had requested services.

Offering services is a much less common P2P activity. Among all internet users, 6 percent had offered services such as ride hailing or lodging. Participation by household income ranges narrowly from 4 percent of those with the lowest incomes to 8 percent of those with the highest incomes.

Selling goods is undertaken by 11 percent of all internet users. Participation ranges from 9 percent among those with the lowest incomes to 14 percent among those with the highest.

Source: NTIA Data: Two-Thirds of U.S. Internet Users Do Not Participate in the Sharing Economy

Unlike Boomers, Most Millennials Attended College Regardless of Family Income

Going to college was not the norm for the Baby-Boom generation. Among high school graduates born from 1960 through 1964, the youngest Boomers, only 44 percent had enrolled in college within four years of high school graduation. For Millennials, in contrast, going to college was the norm. Among Millennial high school graduates born from 1980 though 1984, a much larger 73 percent had enrolled in college within four years of high school graduation.

Family income largely determined the college attendance of Boomers, with the majority of those only in the top income quartile going to college. Not so for Millennials. The majority of Millennials in every family income quartile went to college. Here are the percentages attending college within four years of high school graduation by birth cohort and family income quartile...

Bottom income quartile
Born 1960–64: 32.5%
Born 1980–84: 62.3%

2nd income quartile
Born 1960–64: 41.4%
Born 1980–84: 66.1%

3rd income quartile
Born 1960–64: 43.2%
Born 1980–84: 74.0%

Top income quartile
Born 1960–64: 61.1%
Born 1980–84: 84.8%

The increase in college attendance among young adults with low and mid-level family incomes is one factor behind the rise in student debt over the past few decades.

Source: Bureau of Labor Statistics, College Attendance and Completion Higher among Millennials than Youngest Baby Boomers

Median Household Income Rises in June 2019

Median household income climbed 0.9 percent between May and June 2019, after adjusting for inflation. The $64,430 June median was $593 greater than the May 2019 median, according to Sentier Research. Sentier's estimates are derived from the Census Bureau's Current Population Survey and track the economic wellbeing of households on a monthly basis.

"Real median household income continued to display an upward trend over the past 12 months (up 1.8 percent)," says Sentier's Gordon Green, "and especially since the low point reached in June 2011 (up 15.9 percent)." At the June 2011 low point—two years after the official end of the Great Recession— median household income was just $55,612.  

Sentier's Household Income Index for June 2019 was 104.7 (January 2000 = 100.0). In other words, the June 2019 median, after adjusting for inflation, was just 4.7 percent higher than the median of January 2000—almost two decades ago. "Not an impressive performance by any means," says Green. To stay on top of these trends, look for the next monthly update from Sentier.

Source: Sentier Research, Household Income Trends: June 2019

Median Household Income Falls Slightly in May 2019

Median household income fell slightly to $63,799 in May 2019. This was $353 lower than the April 2019 median after adjusting for inflation, according to Sentier Research. Sentier's estimates are derived from the Census Bureau's Current Population Survey and track the economic wellbeing of households on a monthly basis.

The May 2019 median was 0.9 percent higher than the May 2018 median, after adjusting for inflation. It was 14.4 percent higher than the post-Great Recession low reached in June 2011 ($55,783)—a bottom hit two years after the official end of the Great Recession.

Sentier's Household Income Index for May 2019 was 103.4 (January 2000 = 100.0). In other words, the May 2019 median, after adjusting for inflation, was just 3.4 percent higher than the median of January 2000—almost two decades ago. "Not an impressive performance by any means," says Green. To stay on top of these trends, look for the next monthly update from Sentier.

Source: Sentier Research, Household Income Trends: May 2019