WASHINGTON (Realist English). The US Census Bureau has published its annual report on income, poverty and health insurance for 2025. According to the document, real median household income (adjusted for inflation) rose 2.6% compared to 2024 and amounted to $87,460 — the highest figure in the entire history of observations since 1967.
The poverty rate fell by 0.5 percentage points to 10.2%. Child poverty dropped by 1 percentage point to 13.4%, also a historic low. The share of those without health insurance remained virtually unchanged at 7.9%.
Who Benefited from Income Growth
The rise in median income did not affect all groups equally. According to the Census Bureau, the income of white American households rose 3.0%, non-Hispanic white households by 2.9%, and African American households by 4.8%. For Asian and Hispanic households, the changes were statistically insignificant.
Median earnings of full-time workers did not change substantially, but women’s earnings rose 3.2%.
Incomes Are Rising, Purchasing Power Is Falling
Despite the record figures, the Census Bureau data record only nominal growth. The real purchasing power of Americans continues to decline amid persistently high inflation.
According to Bureau of Economic Analysis data, the Personal Consumption Expenditures (PCE) price index in April 2026 rose 3.8% year-on-year — the highest level in three years. At the same time, real disposable income declined 0.5%, marking the third consecutive month of decline.
Wages are growing more slowly than prices: 3.6% versus 3.8% in April 2026. This is the first time since 2022 that the purchasing power of American workers has fallen in real terms.
What the Numbers Say: K-Shaped Consumption
Analysts at Neuberger point to growing stratification in American consumption. Additional spending is financed primarily from accumulated wealth rather than current income. Americans’ savings rate has fallen to 2.6% — a level close to the minimum since the global financial crisis.
The difference between generations is especially noticeable: households of Generations Y and Z increased spending on travel and leisure by about 10% since the beginning of the year, while middle- and low-income families are cutting real spending.
At the same time, the income gap within the top group is also growing: in April, net salaries of the top 5% rose almost 10% year-on-year, while for the rest of high earners — only 4.6%.
Surveys: Food Is the Main Source of Stress
A study conducted by The New York Times shows that Americans name rising prices, not lagging wages, as the main cause of financial pressure.
Two-thirds of respondents said they are struggling already today and need immediate help. 35% of those surveyed named food as the main source of financial stress — about 15 percentage points more than those who named housing.
More than half of respondents cited meat as the most burdensome item of food spending — six times more than those who named coffee and beverages. The price of beef has risen by about a third over two years, which means an additional $10 a month for a family buying two pounds of ground beef a week.
Midterm Elections and the “Affordability Crisis”
The Census Bureau report was published ahead of the November 2026 midterm elections, in which the economy and the “affordability crisis” will be central topics. President Trump has repeatedly stated that the country has “achieved the greatest successes in the history of the presidency,” but Democrats and some Republicans acknowledge the existence of an affordability crisis.
Senator Elizabeth Warren published a report according to which the Trump administration’s rollback of regulatory norms and programs costs Americans more than $86 billion annually, and individual households may lose over $5,400 a year.
