U.S. household income has surpassed its pre-pandemic levels for the first time, reaching a record inflation-adjusted median of $87,460 in 2025. This figure, released by the Census Bureau, is a slight increase from the 2019 median of $85,320 and signifies a modest recovery in purchasing power after several years of rising prices.
The overall gain in median household income since 2019 stands at 2.5%. This contrasts with the period between 2013 and 2019, which saw a 19% increase in household income during a time of low inflation and declining unemployment. The report suggests that the slower growth over the past six years may contribute to the prevailing public sentiment regarding the economy since the onset of the COVID-19 pandemic in early 2020.
Affordability concerns have become a significant issue in the current political landscape, particularly with the approaching midterm elections.
In a notable development, women's earnings saw a 3.2% increase last year, while men's earnings experienced a slight decline. This rise in women's pay has helped to narrow the gender wage gap. Women now earn approximately 84 cents for every dollar earned by men, an improvement from less than 81 cents in 2024.