Turns Out, US Household Median Income is Dropping. Here are the 2020 Stats by Age, Race and Sex.
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If you are feeling poorer, turns out you are not alone. Household income is dropping across the board while prices are going up.
Every year, the US Census and the Bureau of Labor Statistics compile on US Household income and expenses. This data can be filter for Age, Gender, Race and state to help us make our money make sense.
Although household income typically rises, economic disruptions such as the housing crash of 2008 can dramatically alter income and expenses.
As such, median household income for 2020 fell nearly 2.9 percent, compared with 2019.
The drop was due to supply chain and labor-market disruptions caused by the pandemic. While at first household savings hit as high as 30% monthly, the ongoing fallout left household struggling to keep up with inflation. Debt is up as high as 20% which average spending in 2022 peaking an additional $5,000.
A majority of US households are just one financial emergency away from taking on costly credit card debt, withdrawing from their retirement savings draining their emergency fund.
Table of Contents
Here are some key US household statistics for 2020
Many household are feeling the crunch as median income falls to $67,521 in 2020, a drop of $2,039. Other key findings include:
- GenX-ers, ages 45 to 54 are earning the most, with $90,359. Millennial Households are trailing behind with $85,694.
- The state of Maryland bolsters home with a median income of $94,384. This is almost 40% the national median.
- While being the most educated, women earned 17% less than the median wage of men. This amount to a difference of $10,435, a gap that increase from 2019.
- Black American household pulled in a median income of $45,870, over 30% less than the median income of total household in the US.
- Same-sex married couples earned over $100,000 in median household income.
Median U.S. household income
“Median” is defined as the middle number, indicating that half of all households earned more while half earned less. There is a difference between the median and the average. Whereas the average can skew heavily if there are too many high or low earners, the median works best.
For 2020, the median income was $67,521, 2.9 percent less than the $69,560 recorded in 2019. Despite the drop, this was higher than it was in the three years prior to 2019. Diving deeper we can look at the median income by age, education, race and state.
Thankfully, this amount of income is greatly improve your chances of becoming a millionaire in less than 20 years.
Estimated Median income by age
| Age | Median U.S. income (2020) |
| 15-24 | $46,886 |
| 25-34 | $71,566 |
| 35-44 | $85,694 |
| 45-54 | $90,359 |
| 55-64 | $74,270 |
|---|---|
| 65+ | $46,360 |
Median household income peaks for workers in their 40s and 50s with the highest growth potential in the 20s and early 30s. This is why it’s highly recommended to boost your educational attainment in your 20s.
Also, it’s beneficial to bounce around for up to 40% income boost. Staying in a job that doesn’t promote you by more than 10% in 3 years, becomes a financial death sentence.
Households with workers ages 45 to 54 brought a median $90,359. It’s important to note that it was 3.2 percent less than in 2019. Those 35 to 44 fell 4.8% — to $85,694.
Estimated Median income by gender
Women continued to earn less than men in 2020. Women who worked full-time, year-round positions earned $10,000 less than men. While full-time working women gained ground toward earning an equal wage over time, a significant gap remains.
The pandemic added new stressors or sped up these outcomes which include care giving, whether raising children or taking care of aging parents, lower-paying jobs or industries, and further discrimination.
| Gender | Median U.S. income in 2020 | Median U.S. income in 2019 |
| Women | $50,982 | $47,889 |
| Men | $61,417 | $58,173 |
Estimated median income by race
Race has always played a large role in US society. Nearly all households, regardless of race saw incomes drop in 2020, however Black and Brown communities took the brunt of the issues.
Asian households earned a median income of $94,903 while white households continue to fall behind with $71,231. Hispanic households continue to increase their median income of the last 10 years with $55,321 for 2020.
Black households, unfortunately, remained statistically unchanged with $45,870.
| Race | Median U.S. income (2020) | Median U.S. income (2019) |
| Asian | $94,903 | $99,400 |
| White | $71,231 | $73,105 |
| White, not Hispanic | $74,912 | $77,007 |
| Hispanic (any race) | $55,321 | $56,814 |
| Black | $45,870 | $46,005 |
Average income by education level
Education still plays a significant role in how much workers earn throughout the course of their careers. Although student loan remain a contentious issue, the benefits of education are undeniable.
College degree households nabbed $106,936 in 2020, 126 percent more than those with a High school diploma of $47,405. Workers with a bachelor’s degree or higher made as much as 262 percent more than those who didn’t finish high school.
| Education level | Median U.S. income (2020) | Median U.S. income (2019) |
| Bachelor’s degree or higher | $106,936 | $110,002 |
| Some college | $63,653 | $65,510 |
| High school, no college | $47,405 | $49,316 |
| No high school diploma | $29,547 | $31,347 |
Median income by state
According to the US Census Bureau, Maryland, New Hampshire and Massachusetts had the highest median income. The North East continues to be the center for income growth potential. Also note that the median income in Washington, D.C., was higher than every state except for Maryland. New Mexico, Arkansas and Mississippi had the lowest.
| State | 2020 Median income | 2019 Median income | Change |
| Maryland | $94,384 | $95,572 | -1.2% |
| District of Columbia | $88,311 | $93,111 | -5.2% |
| Massachusetts | $86,725 | $87,707 | -1.1% |
| Virginia | $81,947 | $81,313 | 0.8% |
| California | $77,358 | $78,105 | -1.0% |
| New York | $68,304 | $71,855 | -4.9% |
| Texas | $68,093 | $67,444 | 1.0% |
| U.S. | $67,521 | $68,703 | -2.9% |
| Maine | $63,440 | $66,546 | -4.7% |
| North Carolina | $60,266 | $61,159 | -1.5% |
| Georgia | $58,952 | $56,628 | 4.1% |
| Florida | $57,435 | $58,368 | -1.6% |
| Louisiana | $50,935 | $51,707 | -1.5% |
How can you weather this Median Income Storm?
A 2.9 percent drop in US household income in 2020 while unusual is merely the beginning to the “reversion to the means”. Most households will have a tougher time keeping up with the Jones post Pandemic due to rising costs globally.
No matter how things shake out, there are still immutable laws of household income. Remember the golden principles which include Education, Structural Employment, Geo-arbitrage, Multiple Streams, and Marriage.
Education provides access if used wisely. College is a precision exercise that pairs the student with a high paying in demand career. Anything short is a pipe dream. Never rest in comfortable and move around for opportunity. Also, tap into making multiple streams of opportunity for yourself and your family. The more money coming in, the less likely you will fall into the two-income trap of marriage.
Here are so easy to use Net/Max Financial plans for any age range and situation.
How workers can preserve their income
Families will have to learn to navigate economic challenges, such as a surge in inflation, raising the costs of housing, food and other household expenses.
Remember to invest more than you spend. Tucking away your earnings in a retirement plan, IRAs or health savings accounts can help households afford to retire with dignity.
The average US family is mismanaging as much as $7,500 per year. Necessary changes in lifestyle habits and investing $625 per month, can yield as much as $1.5 Million in less than 40 years. Here’s how my household is changing our investment strategy while inflation hits a 30-year high.
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