Median Household Income in January 2024

Median household income in the United States rose to start 2024, reversing the small decline recorded in December 2023.

Motio Research‘s estimate of median household income in January 2024 is $77,397, rising by by $346 (+0.4%) from the firm’s initial estimate of $77,051 for December 2023.

Motio Research presents its median household income data in the form of an index that incorporates seasonal and inflation adjustments. Its U.S. Real Median Household Income Index has risen in all but one month since bottoming in May 2023.

That upward trend can be seen in the following screenshot of Motio Research’s interactive chart presenting the evolution of this index from January 2010 through January 2024:

The January 2024 index value of 112.8 puts it at the same level it was in December 2020.

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 January 2024 using our alternate methodology is $77,283, which is $261 (+0.3%) higher than our initial estimate of $77,022 for December 2023. Our January 2024 estimate is $114 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 January 2024. The inflation-adjusted figures are presented in terms of constant January 2024 U.S. dollars.

Focusing on the blue, inflation-adjusted data in the chart, we find the purchasing power of the $77,283 income earned by the typical American household in January 2024 remains about 2.4% below where it stood in January 2021. In that month, median household income was $67,121, which works out to be the equivalent of $79,171 in terms of constant January 2024 U.S. dollars. Our estimates show a rising trend for the inflation-adjusted median household income in the months since September 2023.

The U.S. Bureau of Economic Analysis made modest upward adjustments in the aggregate income estimates we use in crafting our median household income estimates for each of the previous six months. The amount of the adjustments ranged from a low of +0.13% (July and November 2023) to a high of +0.25% (September 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: 29 February 2024. Accessed: 29 February 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: 29 February 2024. Accessed: 29 February 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: 13 February 2024. Accessed: 13 February 2024.

Image Credit: Microsoft Copilot Designer.. Prompt: “A couple who are both getting paychecks from working very different jobs.”