March 17, 2026 / CBS News
Nearly half of Americans do not earn enough to cover what researchers say are basic needs, according to a new analysis from the Urban Institute released March 16. The nonpartisan think tank estimates a U.S. family with children needs about $145,000 in annual income to be considered economically secure, and finds roughly 49% of people fall below that threshold.
By comparison, U.S. Census data show the 2024 median household income for married couples was $128,700.
What Urban counts as economic security goes beyond the official poverty measure. The institute includes the costs of adequate food, clothing, housing, health care, child care, transportation, postsecondary education and student loan repayments, plus savings for emergencies and retirement and routine personal items.
The report arrives as many households continue to feel pressure from higher prices. Even some families with six-figure incomes report difficulty paying for essentials like utilities and medical bills.
Urban economist Gregory Acs, a co-author, said the measure captures people who are not destitute but still must cut corners or live paycheck to paycheck. He described the situation as feeling like they’re on a “hamster wheel economy,” with limited ability to get ahead. The analysis argues that earning above the $145,000 mark gives families room to build savings, invest time and money in their children, and gain a greater sense of autonomy.
The findings echo a widely shared 2025 Substack post by Wall Street strategist Michael Green, who argued the practical income needed to afford necessities is far higher than the government’s official poverty line (about $33,000 for a family of four). Acs said Green’s back-of-the-envelope calculation—labeling those under roughly $140,000 as struggling—aligns broadly with Urban’s more detailed approach.
Urban notes the share of people below its economic security threshold likely remained similar into 2026, since wages and inflation have moved roughly in step. However, some households may face heightened strain this year after enhanced Affordable Care Act premium tax credits expired in January.
Economic insecurity is concentrated among certain groups. Single-parent households are among the most vulnerable, with about 90% below the institute’s threshold. Approximately eight in 10 renters lack economic security—about double the rate for homeowners—and about 45% of families with one member over 65 fall short.
Urban also provides alternative thresholds: households under 65 without children need about $95,900 a year to meet basic needs, while families with at least one adult over 65 require roughly $108,500, largely reflecting higher health-care costs.
Edited by Alain Sherter