Six in 10 Americans now identify as working class, including half of those in upper-income households, according to a Pew Research Center analysis based on a survey conducted in January 2026.
The figure marks a six-point rise from 2024, when 54% of US adults used the term to describe themselves. The increase was recorded across a range of demographic, socioeconomic and political groups.
“Working class” has traditionally been associated with low-income earners, blue-collar workers and people without four-year university degrees. But the latest findings suggest the label is increasingly being adopted by people on much higher salaries.
Half of adults earning more than $155,600 a year – classified as upper-income by the study – now consider themselves working class. That income would have placed someone firmly in the upper-middle class in the early 2000s.
The shift reflects growing concerns about affordability, as inflation reduces the spending power of wages and everyday costs, including groceries, remain difficult to manage. Home ownership and other milestones associated with the American Dream have also moved further out of reach.
Housing costs deepen concerns over the American Dream
A study by Investopedia estimated that the traditional American Dream of a suburban house, two children and a car now costs $4.4 million – more than $1 million above what most Americans will earn over their lifetimes.
The median price of a new single-family home was $403,200 in the first quarter of 2026, according to the National Association of Home Builders. Existing homes have been more expensive than new ones for four consecutive quarters.
The typical US homebuyer is now 59, up from 39 fifteen years ago, while the median age of a first-time buyer has reached a record 40.
Affordability is expected to be a central issue ahead of November’s midterm elections, with both parties seeking to appeal to working-class voters. Rising petrol and diesel prices following the Iran war have added to concerns over household bills.
Young Americans postpone traditional milestones
Young people have been particularly affected by the economic pressures. Recent graduates faced an unemployment rate of 5.7% in June, the highest in more than four years, according to the latest data from the New York Federal Reserve.
Many Gen Z graduates are also carrying record college debt and fear that artificial intelligence will make an already difficult entry-level jobs market even more uncertain. Just 21% of young people now believe the American Dream is achievable for them, down from more than half a decade ago.
Financial anxiety has also spread among high earners. A 2025 Harris Poll found that 64% of people earning six figures no longer viewed their income as a sign of success, but as the minimum needed to stay afloat.
Libby Rodney, the Harris Poll’s chief strategy officer, said: “Our data show that even high earners are financially anxious—they’re living the illusion of affluence while privately juggling credit cards, debt, and survival strategies.”
The poll found that 50% of top earners had used buy-now, pay-later plans for purchases costing less than $100, while 45% had delayed medical care because of the expense. Others reported using rewards points for essentials or relying on credit cards to cover their costs.
“The illusion of wealth is exhausting: Many top earners say people assume they can afford it all, yet behind the image of success are quiet sacrifices,” the report said.
