By Mary Claire Evans of Gallup
Americans, on average, estimate that a family of four needs a minimum income of $85,000 annually to “get by” in their community, marking a considerable increase from a decade ago. The past decade has witnessed not only an increase in the average income required but also a notable shift in the upper range of income expectations.
During that time, the proportion of Americans who believe that a family needs more than $100,000 to get by has tripled to 30%, while 18% now estimate it to be between $75,000 and $99,999, and 31% think it is $50,000 to $74,999. Half as many Americans now as in 2013 believe a family of four can get by on less than $50,000 annually. This includes 3% who estimate a figure lower than $30,000, and 11% who cite a figure between $30,000 and $49,999.
The latest average of $85,000, from an April 3-25 Gallup poll, is notably higher than the federal poverty line for a family of four, which is currently $30,000.
In 2013, the average estimate was $58,000, and the federal poverty line for a family of four was $23,550. Accounting for inflation and the subsequent change in purchasing power, Americans’ 2013 estimate translates to $75,668 in 2023 dollars. Their 2023 estimate therefore reflects an increase of about $9,000 in perceived family needs beyond what inflation alone would account for. Higher-Income Respondents Believe Families Need More
Americans' perceptions of the minimum income a family of four needs are influenced by their own financial circumstances. Specifically, those with an annual household income of $100,000 or more project $100,000, on average, as necessary for a family to get by. Middle-income respondents, those with between $40,000 and $99,999 in annual income, estimate a family needs about $80,000. Meanwhile, those earning less than $40,000 believe an income of about $66,000 suffices.
Eastern, Suburban Residents Give Higher Estimates
Geographical location also influences Americans' perceptions of the income needed for a family of four to get by. Notably, residents in the Eastern U.S. estimate, on average, that families need an income of about $98,000, which is significantly more than the estimates from other regions. Residents in the Midwest have the lowest estimate, saying families need an average income of $76,000. These regional differences likely reflect variations in cost of living, housing prices and wage levels.
Similarly, Americans' views on the minimum income for a family of four are influenced by their urbanicity. Those residing in cities (about $87,000) and suburban areas ($91,000) project a higher required income for a family of four than those living in towns or rural areas ($78,000).
Poster Comment:
A million dollar home in Silicon Valley would cost $6,000 a month for mortgage, taxes and utilities. With a 10% sales tax and a state 10% income tax and $5 a gallon gas and sky high insurance (You have to pay for the illegal aliens who don't have insurance and don't know how to drive), you will need $140,000 a year minimum.
IN SF and you insist on living in a poop free neighborhood, I would recommend Sea Cliff. Only $2.6 million for a house so you will need a lot more money. And you will have to send your kids to a private school, as even the best neighborhoods have terrible schools. But I wouldn't send my kids to any public school in California or even here for that matter.