It’s getting harder to break into America's middle class

With Election Day fast approaching, inflation has largely been tamed and wage gains in recent years have lifted incomes – but many Americans still see the economy as the most pressing issue in the 2024 race.

According to Bloomberg analysts, this economic discontent can be explained by one main reason: for many Americans, the building blocks of a middle-class lifestyle are increasingly becoming unattainable.

By the numbers: Many of the biggest expenditures for US families have seen significant price increases dating back to the eve of the 2016 election, per Bloomberg’s calculations.

• The standard 20% down payment on a median-priced home currently costs ~83% of a year’s salary for the typical US home-buying family, up from 65% eight years ago.
• The average time to save up for that home down payment has risen from 14 years to 19 years over the same period, while the median monthly mortgage payment almost doubled from 14% of median income to 26%.
• Child care cost the median US household ~25% of its weekly income eight years ago; today, that figure stands at over 33%.
• The average new car purchase takes nearly two extra weeks of labor for the median US family compared to late 2016.

But… It’s not all bad for the middle class. Wage growth has outpaced inflation since the onset of the pandemic. And the recent run-up in home prices across the country – one of the steepest in US history, per Zillow senior economist Orphe Divounguy – has represented a historic wealth-building opportunity for American families who already own a home.

Looking ahead: Both leading presidential candidates recently unveiled policies they say are aimed at boosting the prospects of the US middle class. But regardless of who wins next month, Americans’ economic discontent is expected to stick around.

📊 Flash poll (long-form): In your opinion, what, if anything, should be done to make a US middle-class lifestyle more affordable?

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