Electronic income

Median household income in December 2021

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The policy calculations’ initial estimate of the median household income in December 2021 is $72,933, an increase of $580 (or 0.8%) from the initial estimate of $72,353 for November 2021.

The latest update to the 21st Century Median Household Income Policy Calculations chart shows the nominal (red) and inflation-adjusted (blue) trends in median household income in the United States from January 2000 to December 2021 Inflation-adjusted figures are presented in constant December 2021 US dollars.

Median household income in the 21st century: nominal and real modeled estimates, January 2000 to December 2021

The estimated median household income of $72,933 in December 2021 is $633 higher than the previous April 2020 inflation-adjusted peak of $72,300 in constant December 2021 US dollars. This compares to an unadjusted increase inflation of $6,445 from the nominal April 2020 estimate of $66,488. That is, inflation eroded more than 90% of the estimated nominal increase in median household income between those months.

Analyst Notes

The BEA has adjusted its estimates of wage and aggregate wage income for October 2021 and November 2021 upwards by 0.22% and 0.36% respectively in its latest data release.

The references

US Bureau of Economic Analysis. Table 2.6. Personal income and its disposition, monthly, personal income and expenses, not seasonally adjusted, monthly, mid-month. Population. [Online Database (via Federal Reserve Economic Data)]. Last updated: January 28, 2022. Accessed: January 28, 2022.

US Bureau of Economic Analysis. Table 2.6. Personal income and its disposition, monthly, personal income and expenses, not seasonally adjusted, monthly, mid-month. Compensation of employees, received: payments of wages and salaries. [Online Database (via Federal Reserve Economic Data)]. Last updated: January 28, 2022. Accessed: January 28, 2022.

United States Department of Labor Bureau of Labor Statistics. Consumer Price Index, All Urban Consumers – (CPI-U), US City Average, All Items, 1982-84=100. [Online Database (via Federal Reserve Economic Data)]. Last updated: January 12, 2022. Accessed: January 12, 2022.

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Editor’s note: The summary bullet points for this article were chosen by the Seeking Alpha editors.