US Median Household Income Hits Record $87,460 as Gains Stay Uneven
Macro
U.S. real median household income reached a record $87,460 in 2025, up 2.6% from $85,210 in 2024, according to the Census Bureau's Income in the United States: 2025 report. Post-tax median income rose 3.1% to $76,060, though that remained below the post-tax records of 2020 and 2021. The gains were uneven: income for households near the bottom of the scale barely changed in 2025, while households near the top saw income rise 1.7%, and over the past 58 years pretax income for lower-income households rose about 56% versus 121% for those near the top. The Bureau of Labor Statistics' August 2026 Consumer Price Index showed overall consumer prices 3.4% higher than a year earlier, with food up 2.7%, shelter up 3.0%, hospital services up 5.2%, and gasoline up 27.4%. The Census data suggests higher-income households continue to support spending while value-oriented businesses and companies with durable pricing power in essential categories may benefit as cost-conscious consumers trade down.
