Median Household Income in December 2023

Motio Research‘s estimate of median household income in December 2023 was $77,051. The estimated income earned by a household at the exact middle of the income distribution in the United States slipped by just $33 from the firm’s initial estimate of $77,084 for November 2023.

The very small change in median household income from November to December 2023 effectively qualifies as unchanged after adjusting for inflation. However, Motio Research finds that real median household income at the end of 2023 represents an increase of 0.5% over the last three months and by 1.4% over the past year.

Here is a screenshot of Motio Research’s interactive chart presenting the evolution of their inflation and seasonally-adjusted Median Household Income Index from January 2010 through December 2023:

After accounting for seasonality and inflation, Motio Research’s estimate of December 2023′s median household income continues to fall below its pre-Coronavirus Pandemic level.

Analyst’s Notes

Political Calculations produces estimates of median household income that complement the monthly survey-based estimates produced by Motio Research. Our initial estimate of median household income in December 2023 using our alternate methodology is $77,022, which is $231 (+0.3%) higher than our initial estimate of $76,791 for November 2023. Our December 2023 estimate is just $29 below Motio Research’s initial estimate for the month.

The latest update to Political Calculations’ chart tracking Median Household Income in the 21st Century shows the nominal (red) and inflation-adjusted (blue) trends for median household income in the United States from January 2000 through December 2023. The inflation-adjusted figures are presented in terms of constant December 2023 U.S. dollars.

The U.S. Census Bureau released a substantial revision of its monthly population estimates, which we use in producing our estimates of median household income, covering the period from March 2020 to the present. The revisions increased the population estimates before May 2022 and reduced them in the period following that month. Curiously, the population estimate for May 2022 itself was unchanged.

Meanwhile, the Bureau of Economic Analysis made very small downward adjustments to its aggregate wage and salary income estimates for October and November 2023.

References

U.S. Bureau of Economic Analysis. Table 2.6. Personal Income and Its Disposition, Monthly, Personal Income and Outlays, Not Seasonally Adjusted, Monthly, Middle of Month. Population. [Online Database (via Federal Reserve Economic Data)]. Last Updated: 26 January 2024. Accessed: 26 January 2024.

U.S. Bureau of Economic Analysis. Table 2.6. Personal Income and Its Disposition, Monthly, Personal Income and Outlays, Not Seasonally Adjusted, Monthly, Middle of Month. Compensation of Employees, Received: Wage and Salary Disbursements. [Online Database (via Federal Reserve Economic Data)]. Last Updated: 26 January 2024. Accessed: 26 January 2024.

U.S. Department of Labor Bureau of Labor Statistics. Consumer Price Index, All Urban Consumers – (CPI-U), U.S. City Average, All Items, 1982-84=100. [Online Database (via Federal Reserve Economic Data)]. Last Updated: 11 January 2024. Accessed: 11 January 2024.

Image Credit: Shane with a fan of American one hundred dollar bills after getting paid. Photo by Shane on Unsplash.