Upper middle class is now the largest income group in the U.S.

An AEI analysis of U.S. Census data finds about 31% of households now qualify as upper middle class, making it the largest income group, based on family income trends from 1979 through 2024.

A new analysis by the American Enterprise Institute finds the upper middle class is now the largest income group in the United States. The study uses U.S. Census data on family incomes from 1979 to 2024 to track long-term change. Researchers point to income gains, more dual-earner households, and rising educational attainment among women as drivers of the shift. At the same time, surveys report many Americans still feel financially stretched, while costs for housing, education and health care have risen faster than inflation. Key findings: - About 31% of U.S. households are defined as upper middle class in the AEI analysis. - AEI defines the upper middle class for a family of four as earning roughly $153,864 to $461,592. - The share of households classified as "rich" is reported at 3.7%, about 12 times higher than in 1979. - The study cites more dual-earner families and higher college attainment among women (about 11% of women had college degrees in 1970 versus about 40% today) as important factors. - The analysis covers family incomes from 1979 through 2024 and notes a post-COVID "K-shaped" pattern of stronger spending by higher-income households. Summary: AEI's findings point to a long-term upward shift in income distribution, with more households moving into the upper middle range. This trend has coincided with changes in household composition and higher educational attainment for women, and it is associated with shifting consumer demand toward higher-end goods and services. Public perceptions of financial strain remain common even as measured incomes have risen. Undetermined at this time.