Introduction
The average household income in the United States is an important economic indicator, providing insight into the overall financial health of the country. This article will explore what the average household income is in the United States, as well as how it has changed over time. We’ll also look at the factors that impact household income and how the average American family’s income compares to the national average.
A Statistical Look at the Average Household Income in the United States
When looking at the average household income in the United States, there are two terms that are commonly used: median household income and average household income. The median household income is the midpoint of all the income earners in a given area, meaning half of all households make more than the median, while half make less. The average household income, on the other hand, is the sum of all income earners in a given area divided by the number of households.
Exploring the Trends of Household Income in the United States
In order to understand the current state of the average household income in the United States, it’s important to look at how it has changed over time. According to the US Census Bureau, the median household income in 2018 was $63,179, which is up 1.8% from 2017. This marks the fourth consecutive year of growth in median household income. However, when adjusted for inflation, the median household income has remained largely unchanged since 2000.
When looking at the average household income, the picture is slightly different. In 2018, the average household income was $87,864, which is up 2.9% from 2017. This marks the fifth consecutive year of growth in average household income. When adjusted for inflation, the average household income has increased by 8.4% since 2000.
It’s important to note that these figures can vary greatly depending on location and other factors. For example, the median household income in California was $75,277 in 2018, while the median household income in Mississippi was just $44,758. It’s also worth noting that income inequality is still a major issue in the United States, with the top 5% of earners making more than 20 times the bottom 20%.
The Average American Family: What is the Median Household Income?
In order to get a better understanding of the average household income in the United States, it’s helpful to look at it on a state-by-state basis. According to the US Census Bureau, the median household income in 2018 ranged from a low of $44,758 in Mississippi to a high of $75,277 in California. Other states with relatively high median household incomes included Massachusetts ($73,385), New Jersey ($72,222) and Connecticut ($71,346). On the other end of the spectrum, states with the lowest median household incomes included West Virginia ($44,097), Arkansas ($45,869) and Mississippi ($44,758).
It’s also useful to look at the average household income by region. The Midwest had the highest median household income in 2018 at $68,908, followed by the Northeast ($68,891), the South ($59,206) and the West ($62,788). When comparing the regions, it’s clear that the Midwest and Northeast are significantly wealthier than the South and West.
An Overview of the Average Household Income in the US
When looking at the average household income in the United States, it’s important to compare it to the national average. In 2018, the national median household income was $63,179, while the national average household income was $87,864. This means that the average American family makes roughly 40% more than the national median.
It’s also useful to compare your own household income to the national average. If your household income is lower than the national average, it may be worthwhile to look at ways to increase your income. This could include getting a higher paying job, starting a side hustle or investing in stocks or real estate.
Conclusion
The average household income in the United States is an important economic indicator, providing insight into the overall financial health of the country. The median household income in 2018 was $63,179, while the average household income was $87,864. This means that the average American family makes roughly 40% more than the national median. It’s important to note that these figures can vary greatly depending on location and other factors. Finally, it’s useful to compare your own household income to the national average to get an idea of where you stand financially.
In conclusion, the average household income in the United States has seen modest gains in recent years, but remains largely unchanged when adjusted for inflation. It’s important to note that income inequality is still a major issue in the United States, with the top 5% of earners making more than 20 times the bottom 20%. Understanding the average household income in the United States is an important step in improving the financial security of American families.
