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

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

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Agreed with the PP.  Middle class folks in DC are going to look for housing further out unless they already have bought in the area many years ago.  All the previous examples be it in NOVA burbs or in the district are from the perspective of the upper middle class person aspiring to be rich.  What is qualified as middle class there (1m) is actually upper middle class and even I would say the upper half of it.  [b]Upper middle class buy homes 600-1.5mil.  the range is large because in DC there is a large swath of upper middle class incomes.  [/b]

Middle class is what in previous posts was shown as lower middle class, but again, this is the upper band of the middle class, e.g. people buying homes upwards of 600K.  I'd say middle class would be around 300-600 price range for a home.

[b]As far as incomes are concerned, anything up to $150K is middle class and above this is upper middle class.  Anyone making over 500K a year is pretty much lower upper class.  Upper class also has its bands and to be comfy in the upper class you do need at least over 1 mil annual income. [/b]

[b]As far as networth is concerned, it's hard to say.  Middle class is up to 250K networth, Upper middle class starts at around 250K in savings to over 1.5 mil and upper class lower band starts around 1.5 mil.  [/b]

Not a science, this is just my personal opinion based purely on observations and some statistics.[/quote]

Unfortunately, while this would be nice, this is far from the reality.  From US Census information, Median income in the  US is $51K/yr, in DC $58K/yr, in VA $62K/yr and in MD $70K/yr.  the 75th percentile ranges from $80-140K depending on area.  $150K is between 80th and 90th percentile for most of the country except a few isolated urban areas which are the highest COL in the nation.  There is no way that 80th or 90th percentile can ever be considered middle class, even upper middle class.  $500K is about the top 1.5 percent nationally and about the top 2.5 percent in the DMV region. [b] That is solidly in the upper class and not even lower upper class.  [/b]

The problem is that many people have expectations of what various classes can afford vs what various classes earn.  The definition of economic classes is based on what they earn and doesn't take into account the COL in the area.[/quote]

I disagree, this is definitely lower upper class if you consider upper class to be the rich and rich have many levels.   think about it, we have 4 classes (lower, lower middle, middle, upper middle) shoved into the income range of just 0-250 or 0-500K.   Think about the rich, the upper class that has levels of wealth ranging from under 10 mil to billions!

People with the networh of 2 mil will never have the same lifestyle or levels of comfort as people with the networth of 15 mil and then the sky is the limit, as there is a good number of households that have 100mil and more (the uber-rich)  which happen to be concentrated around the centers of power such as NYC and DC.   We would usually consider someone having at least 1 mil in savings to be pretty well off and many would say rich.  Someone with the networth of 3 mil is definitely rich in the eyes of many, but if you consider the levels of wealthy you realize how low these households are in the hierarchy of the upper class.

The household making 500K a year would have most likely able to save 3 mil after a number of years of consistently making this income just to gain the entry into the lower level of the upper class.   A household with 250K annual income will have a harder time getting there and by the time they get there, the inflation would have eaten away at that wealth should their incomes be steady and not rise much over the years.   I'd say a household with 250K income is upper middle class, while a household with 500K income is lower upper class.

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