Motio Research's initial estimate of U.S. median household income in December 2024 is $82,537. This figure is $49 (0.06%) lower than the firm's initial estimate of median household income of $82,586 in November 2024.
Motio Research's estimates are based on income data collected by the U.S. Census Bureau through its monthly Current Population Survey, which are conducted in the month following the month in question. The firm adjusts its monthly estimates to account for the effects of seasonality and inflation in its data, presenting its results in the form of an index with the median household income of January 2010 assigned a value of 100. The initial value of the firm's U.S. Real Median Household Income Index for December 2024 is 117.1.
The following screenshot of Motio Research's interactive chart shows how this index has changed from January 2010 through December 2024:
Motio Research also generates household income estimates for the 25th and 75th percentiles in addition to its 50th percentile (median) estimate. The firm reports the households at these positions in the income distribution saw increases over their November levels. Here is what they reported in their 20 January 2025 press release:
The real 25th percentile household income index rose by 0.3% in December, climbing to 117.5 (or $41,742). Despite this gain, the index has slipped 0.1% over the last three months and remains below its pre-Covid peak. On a year-over-year basis, however, lower-quartile incomes are up 0.9%.
At the upper quartile, the household income index increased by 0.2% in December, moving to 120.7 (or $147,356). Over the past three months, the index has risen 0.3%, and it is now 1.0%) above its level of a year ago, maintaining a comfortable margin above its pre-Covid peak.
The three bits of income data together paint a mixed picture for how income changes for households at different parts of the U.S. income spectrum changed in December 2024. We believe that's mainly attributable to noisy variation that arises from the U.S. Census Bureau's sampling of households for its surveys, as other income data sources suggest median household income also increased in December 2024.
Analyst's Notes
Political Calculations produces estimates of median household income that complement the monthly survey-based estimates produced by Motio Research, which we derive from aggregate income data produced by the Bureau of Economic Analysis. Our initial estimate of median household income in December 2024 based upon our alternate methodology is $82,800, which is $229 (0.3%) higher than our initial November 2024 estimate of $82,571. Our median household income estimate is $263 (0.3%) below Motio Research's December 2024 estimate.
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 2024. The inflation-adjusted figures are presented in terms of constant December 2024 U.S. dollars and are not seasonally adjusted, unlike the data used to produce Motio Research's Household Income index:
Political Calculations' monthly median household income estimates are derived from the Bureau of Economic Analysis' monthly aggregate wage and salary estimates for the U.S. population. For December 2024, this data includes very small downward revisions to previously reported data for October (-0.006%) and November 2024 (-0.064%).
For the latest in our coverage of median household income in the United States, follow this link!
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: 31 January 2025. Accessed: 31 January 2025.
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: 31 January 2025. Accessed: 31 January 2025.
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. Not seasonally adjusted. [Online Database (via Federal Reserve Economic Data)]. Last Updated: 15 January 2025. Accessed: 15 January 2025.
Image credit: U.S. Census Bureau. We modified the public domain image to make it more generally applicable beyond reporting the median household income from 2022.
Labels: median household income
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