Median household income is the amount of money that divides the income distribution of households into two equal halves—half of households earn more, and half earn less. Unlike individual income, it accounts for combined earnings and shared financial responsibilities within a household, offering a more accurate picture of economic well-being.
When median household income is low or falling, it can signal rising inequality, job loss, or insufficient wage growth—especially in cities with high living costs. Even if the median seems adequate, many families live on far less, especially those with children or multiple dependents. Cities can respond with policies that support workforce development, job access, wage increases, and educational opportunities.
When median household income rises in an equitable way, it suggests more families are earning enough to support their basic needs, save for the future, and contribute to the local economy. It reflects growing financial stability and opportunity across the community.