An average person in the U.S. today might feel like their money doesn’t go as far as it used to, and they’re not wrong.
When you compare upper class income in 2000 to 2025, you’re faced with key considerations, such as purchasing power, inflation, income inequality, cost of living, location, wealth and income.
Purchasing Power and Inflation
The purchasing power of one’s income was greater in 2000 than today and U.S. consumers are highly sensitive to price changes, according to TD Economics.
“The cost of housing, day care, energy and insurance, has been increasing at rates that are much faster than the rate at which most people’s salaries are going up,” said Steve Case, financial and insurance consultant at InsuranceHero. “As a result, your well-deserved income is being consumed much faster than you can enjoy it before you reach your maximum allowable lifestyle choice.”
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Income Inequality
The wealth gap between the rich and the poor has only increased from 2000. The global top 10% owns 75% of total personal wealth while the bottom owns just 2%, according to the World Inequality Report 2025.
“Not only do a smaller share of Americans live in middle class households today, the incomes of middle-class households have also not risen as quickly as the incomes of upper-income households,” according to The Pew Charitable Trusts.
Cost of Living and Location
High cost of living locations are typically also densely populated. What constitutes the upper class vastly differentiates in these areas from the rest of the country. While a household income of roughly $100,000 could be considered middle to upper class in a low-cost state like Mississippi, it’s considered low income in many Bay Area, California counties, according to information released from a California Department of Housing and Community Development report. For instance, Santa Clara County, at $111,700, has the highest low-income benchmark for a single-person household — $33,150 more than it was just five years ago.
High cost of living areas in the U.S. include New York City and many cities in California, including the San Francisco Bay and Los Angeles areas. Other locations include Honolulu, Seattle, Washington D.C. and Boston.
Wealth Versus Income
Class is determined by multiple factors beyond just one’s annual income. These factors can include overall assets minus debt, education and social capital.
“Today, simply getting a higher-paying job is no longer enough to guarantee the same advancement opportunities as getting such a job 25 years ago,” said Case. “As a result, in the U.S. today, long-term equity typically outweighs a salary because in our current economy, the majority of people who are currently classified as upper-tier are classified based on their long-term equity position.”
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This article originally appeared on GOBankingRates.com: How Upper Class Income in 2000 Compares to 2026
