Middles Class: $381K is the NEW $100k, Six Figures is no longer Suceessful based on analysis

[Anonymous]

As most of us suspect, middle class / rich threshold is much higher now a days, $380K nationally and $427k to $617K in the DC area

This is the reason why people in our area feel like they are barely scraping buy on $200k-$300k a year. To feel comfortable and upper middle class you would need to make about $350k-$500K in the DC area.

Some key findings from the articles:
Nationally, the top 1 percent of all households had annual incomes of $387,000 or more in 2010.
The District’s threshold for a 1 percenter — $617,000
Maryland had the fifth-highest threshold, almost $477,000
Virginia’s was eighth highest, at more than $427,000.

Think Six Figures Makes You Successful? Not Anymore
http://www.cnbc.com/id/47980347

What it takes to be a 1 percenter in the Washington area
http://www.washingtonpost.com/local/what-it-takes-to-be-a-1-percenter-in-the-washington-area/2012/02/01/gIQA571JiQ_story.html

[Anonymous]

As usual. The District attracts the most successful.

[Anonymous]

Anonymous wrote:As usual. The District attracts the most successful.

LOL that's debatable, it basically says that DC's cost of living is much higher. Maybe someone might believe it's a better value to live in MD or VA. A lot of the people living in DC are living off of inheritance or hand my down houses.

[Anonymous]

Oh please...

[Anonymous]

380K is the national average for the 1%, not the middle class.

600K is the DC average for the 1% because there are a buttloadof people here making over six figures. Which pushes the threshold higher than in other areas.

The median income in this country remains 50K and no one, No one , no one who makes 6 figures or so even in this area is barely scraping by.

[Anonymous]

Anonymous wrote:

Anonymous wrote:As usual. The District attracts the most successful.

LOL that's debatable, it basically says that DC's cost of living is much higher. Maybe someone might believe it's a better value to live in MD or VA. A lot of the people living in DC are living off of inheritance or hand my down houses.

No it's not. It's saying that incomes are highest in the District and to top the highest threshold you need to make even more than anywhere else. Thus, the most successful Americans. The whole narrative of trust funds and hand me down houses is almost as old as the narrative of poor services and no trash service.

[Anonymous]

Yeah, housing is higher here because the area is In demand. In other areas, DC metro is comparable to other CoL expenses, aside from perhaps private schooling, which is a luxury.

[Anonymous]

Anonymous wrote:As most of us suspect, middle class / rich threshold is much higher now a days, $380K nationally and $427k to $617K in the DC area

This is the reason why people in our area feel like they are barely scraping buy on $200k-$300k a year. To feel comfortable and upper middle class you would need to make about $350k-$500K in the DC area.

No, the reason is because you want to live a seven figure lifestyle on a six figure income.

[Anonymous]

Anonymous wrote:380K is the national average for the 1%, not the middle class.

600K is the DC average for the 1% because there are a buttloadof people here making over six figures. Which pushes the threshold higher than in other areas.

The median income in this country remains 50K and no one, No one , no one who makes 6 figures or so even in this area is barely scraping by.

Amen to that. OP, please stop trying to paraphrase articles.

[Anonymous]

This makes sense to me. We are in our mid 30s make around 280k and can only afford a late 50s rambler 2000 SQRFT home inside the beltway in a good area / school district. To get a normal sized 3500 SQRFT newer home (less than 10 years old), like you would normally buy in other areas of the country (not high end), you would need to make probably 400-500k a year. We bought after the housing boom so I am talking about any new families in their early to mid 30s who were not lucky enough to amass the massive amounts of equity resulting from the boom of 2000-2006.

[Anonymous]

PP, do you hear yourself? You can only afford to buy a decent sized house, inside the beltway, in a good school district?!

You are paying the premium for living in DC and CoL is so much more than just house anyways. Why do people in this area insist they ae barely getting by because they don't live in a mansion?

[Anonymous]

Anonymous wrote:This makes sense to me. We are in our mid 30s make around 280k and can only afford a late 50s rambler 2000 SQRFT home inside the beltway in a good area / school district. To get a normal sized 3500 SQRFT newer home (less than 10 years old), like you would normally buy in other areas of the country (not high end), you would need to make probably 400-500k a year. We bought after the housing boom so I am talking about any new families in their early to mid 30s who were not lucky enough to amass the massive amounts of equity resulting from the boom of 2000-2006.

Woe is me.

[Anonymous]

Anonymous wrote:PP, do you hear yourself? You can only afford to buy a decent sized house, inside the beltway, in a good school district?!

You are paying the premium for living in DC and CoL is so much more than just house anyways. Why do people in this area insist they ae barely getting by because they don't live in a mansion?

A mansion is not 3000SQRFT

[Anonymous]

And since when is 3500 normal sized? That's pretty damned big.

[Anonymous]

OK, what the hell? The CNBC article has no figures and really is just saying that inflation has driven the cost of everything up. How did you see this as "proof" of some insanity about almost $400K HHI being middle class?

The figures in the WaPo article clearly show the 1%ers - that means, the top 1% of households here, which is FAR from the middle. Plus that article is a few weeks old and was already discussed.

I wish someone would finally publish an article saying what the figures are to qualify you for middle class in this metro area, so it would stop all this crazy talk. We have already seen the county median incomes and most people know the median income in their immediate area. Those are at least starting points for middle class, and those are in the low-mid 100Ks.