Lower real income and higher poverty for Asian Americans in 2023

Real median income, or income that accounts for inflation, of American households increased by +4.0% to $80,610 in 2023 according to recent Census reports. This is the first statistically significant annual increase in real median household income since 2019. Non-Hispanic White, Black, and Hispanic households saw higher real median incomes in 2023, whereas Asian households saw 2 consecutive years of lower real median incomes in 2023 and 2022. Accordingly, the U.S. official poverty rate fell by -0.4% to 11.1%, roughly 36.8 million Americans live in poverty in 2023. The official poverty rates fell for non-Hispanic Whites (-0.9% to 7.7%) and Hispanics (-0.2% to 16.6%) but rose for Asians (+0.5% to 9.1%) and Blacks (+0.7% to 17.9%). An estimated 2.2 million Asian Americans live in poverty in 2023, an increase of 190,000 from prior year. Across all reported age groups, the official poverty rates were higher for Asian Americans than for those of non-Hispanic White Americans.

Lower real median income for Asian Americans

American households saw higher real median incomes in 2023 per new Census reports. The real median income, income that accounts for inflation, of American households increased by +4.0% to $80,610 in 2023. This is the first statistically significant annual increase in real median household income since 2019. Non-Hispanic White, Black, and Hispanic households saw their real median incomes increase by +5.7% to $89,050, +2.8% to $56,490, and +0.4% to $65,540, respectively. Asian households saw their real median income decrease by -0.2% to $112,800 in 2023 and by -0.6% in 2022.

While Asian households in aggregate show higher median household incomes, income inequality among Asian subgroups are quite wide. For example, incomes are much lower for Burmese and Hmong Americans than for Asian Indian and Taiwanese Americans. Within Asian subgroups, income inequality is greater among Chinese Americans than any other Asian subgroup in the U.S.

Higher poverty for Asian Americans

In 2023, the official poverty rate fell by -0.4% to 11.1% with an estimated 36.8 million Americans living in poverty. The official poverty measure, produced since the 1960s, defines poverty by comparing pretax money income to a national poverty threshold adjusted by family size.

Though the official national poverty rate decreased, the poverty rate varied greatly among different racial and ethnic groups. The official poverty rate fell for non-Hispanic Whites (-0.9% to 7.7%), Hispanics (-0.2% to 16.6%), and American Indian and Alaska Natives (-3.8% to 21.2%), but rose for Asians (+0.4% to 9.1%), Multiracial Americans (+2.2%), and Blacks (+0.7% to 17.9%).

An estimated 2.2 million Asian Americans (2.0 million of Asian alone) live in poverty in 2023. This reflects an increase of 190,000 (109,000 of Asian alone) from 2022. Across all reported age groups, the official poverty rates were higher for Asians than that of non-Hispanic Whites. Asian Americans experience higher poverty rates among the youth (under 18yrs) and seniors (65yrs and over). Because the Asian population in the U.S. is so diverse, poverty rates vary widely across Asian subgroups.

Useful Resources

Income in the United States: 2023 (U.S. Census Bureau)

Poverty in the United States: 2023 (U.S. Census Bureau)

Demographics and Socioeconomics of Asian Americans, Native Hawaiians, and Pacific Islanders

Key facts about Asian Americans living in poverty (Pew Research Center)