Study Reveals Upper Middle Class as Largest U.S. Income Group

A new analysis from the American Enterprise Institute finds notable income shifts across U.S. households. The study reveals growth in the upper middle class, now the largest U.S. income group by share.

Data and definitions

The AEI research examined family incomes from 1979 through 2024. Analysts used U.S. Census data to measure long-term changes.

About 31% of households now qualify as upper middle class. AEI defines that bracket for a family of four as earning between $153,864 and $461,592.

Changes since 1979

The share of households classified as upper middle class has roughly tripled since 1979. Meanwhile, the proportions in the core and low middle class have declined.

Households the study labels as rich now account for 3.7% of all households. That share is about 12 times larger than it was in 1979.

What drove the gains

Rising dual-earner households played a major role in boosting incomes. Professional gains for women were a key factor.

In 1970, about 11% of women held college degrees. Today roughly 40% of American women have bachelor’s degrees, a shift tied to higher lifetime earnings.

Wider economic effects

The shift upward has altered consumer demand. Higher-income households now spend more on premium goods and services.

Economists describe a K-shaped recovery where wealthier consumers increase spending while lower-income households cut back. This pattern intensified after the COVID-19 pandemic.

Perception versus reality

A recent poll reported by Filmogaz.com found most Americans feel it is harder today to buy a house, get a good job, or raise a family. That sense of strain persists despite rising incomes for many households.

Researchers note people often assess their own finances more positively than the national economy. Nevertheless, costs for housing, education, and health care have grown faster than inflation.

The AEI findings suggest overall income growth across the distribution. Analysts say fewer people fall within a fixed middle-income range largely because many households have moved up the income ladder.