2012-09-14 22:18:00 - By Dave Manuel
Median Household Income Was $50,054 In 2011
Earlier this week, the Census Bureau released their "Income, Poverty, and Health Insurance Coverage in the United States" report for 2011.
The report revealed that median household income in the United States fell for the fourth straight year in 2011.
After hitting $54,489 in 2007 (inflation adjusted), median household income has dropped by nearly $4,500:
2007 - $54,489
2008 - $52,546
2009 - $52,195
2010 - $50,831
2011 - $50,054
Median household income is defined by the U.S. Census Bureau as "the amount which divides the income distribution into two equal groups, half having income above that amount, and half having income below that amount."
So, in 2011, 50% of US households had incomes of less than $50,054, while 50% of US households had incomes of more than $50,054.
The Census Bureau counted a total of 121,084,000 households in 2011.
The all-time high for median household income, on an inflation adjusted basis, was posted in 1999 ($54,932).
It should be noted that the country is perilously close to posting a median household income number of less than $50,000 for the first time since 1995 ($49,935).
Can the country reverse the trend in 2012?
Source: Median Household Income
Source: US Census Bureau
Filed under: The Economic Meltdown
4 COMMENTS - What Say You?
Comment by Rick Yates on September 21, 2012 @ 9:49 pm
I just discovered your website today. I have been compiling data in analyzing are we better off today than 4 years. The data is frightening.
THIS IS THE BEST SITE ON ECONOMICS I'VE SEEN,thanks!
Comment by Rleot on October 30, 2012 @ 10:56 am
I wonder if the Globalization of our economy has anything to do with this. The powers to be (George H.W.Bush and his "New World Order" warnings between 1988 and 1992, and Richard M. Nixon's visit to Communist China in 1973) said that Globalization would be good for the American workers. Oh well, let's go vote for Mitt Romney and see if he can reverse this trend, but don't hold your breath. lol
Comment by Mahmood on December 07, 2012 @ 12:23 pm
Agreed on that .there are many ways to think about affordability for houinsg .household income is one and of course these guidelines are just that and each person/family must look at their own situation. If you make 60,000 a year but have 20,000 in credit card debt and no savings you can afford a whole lot less home than someone who makes 60,000 a year but has no credit card debt and 20,000 in savings.But the rule that houinsg values always goes up is of course incorrect. It is like any commodity it can go up and it can go down. A home is a place to live and not an ATM machine as some folks in other parts of the country used it for.As for re-financing you just missed the best rates. There were two days just prior to Dec 21st when the re-fi rates for 30 yr fixed 0 points was at 4.50 pt and 4.75 pct. Dec 22nd they hoped back up to 5 pct. This was for credit scores of 720 and higher and 0 points as was at Gate City.Now all we need is for the appraisal to come back ok. We have been in our house for 5 years it was appraised when we bought it in June 03 for 214,000. For our current re-fi we need it appraised at 222,5 in order for us to drop PMI. Doing so and going from 5.875 pct loan to 4.75 pct loan 30 yr fixed will save us about 300.00 a month total (incl mortage and real estate taxes/specials). So I hope the home's worth on the market has increased by 10,000 since 2003. We put about 25,000 in fence/deck/landscaping/finishing and heating garage. We will see.
Comment by Gena on December 09, 2012 @ 2:17 am
Just a few comments. I find it inertesting that the income numbers are so high. I wonder if the fact that recent graduates are hired at below industry wages account for that. In many professions in the area the owners seem to hire recent grads for about 20% lower than what the going rate is. I know lawyers in Grand Forks who were hired at about the 30-35k range in 2005 while the going rate was about 50k in Minot. As for the household vs. family debate, with divorce rate what they are it is anyone's guess as to what that is. Tu While there may be many people in smaller towns who do not earn as much, you also have to account for the farmers in the area. I wonder if the smaller towns would truly be higher or lower than grand forks when it comes to median income.Finally, with regards to the mention of students and the Air base. Students keep the wages low because there is a surplus of people willing to take a job at a lower wage, and employers know this. Once the student or recent graduate moves to take a job that pays better. Both the military and students would tend to rent homes and/or apartments, so while the price of rent would be able to remain higer, not to many military and students are buying homes.I wonder if the bigger problem with home affordability is the average price of homes, or the taxes assessed. A house I know of which is for sale has a tax assessed value of 148k, yet it is listed for about 120 and still isn't selling.
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