5 Services the Middle Class Won’t Be Able To Afford in the Next 5 Years
Written by
Angela Mae
Edited by
Molly Sullivan
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According to Pew Research Center, people in middle-class America earn a median income of $106,100. While this is above the overall median household income of $74,480 — as reported by the Bureau of Labor Statistics — it’s still not quite enough to cover the increasing costs of all everyday services.
As prices continue to rise, these are the top five services middle-class households are likely to struggle to afford.
College
The cost of higher education is already notoriously expensive, but tuition costs at public four-year institutions rose by more than 9% from 2010 to 2022. Out-of-state tuition averages $27,457 per year, while in-state tuition costs $9,750 on average. If prices continue to rise, middle-class families may be unable to afford college education — if they can even afford it now.
“College tuition is rising faster than inflation and without substantial financial aid or scholarships, the expense will cripple many middle-class families. This can lead to more student debt as families are forced to rely more on student loans to pay for tuition, room and board,” said Erika Kullberg, attorney, personal finance expert and founder of Erika.com. “Some of the causes include fewer dollars coming from states for education, more demand for education, and the need for more advanced degrees just to get by in today’s economy.”
Housekeeping
While middle-class Americans could afford housekeeping services in the past, this is fast becoming an inaccessible service.
“While most middle-class Americans don’t have live-in housekeepers, some do like to have a housekeeper come once a week or biweekly to take care of certain chores and lighten their load,” said Todd Stearn, founder and CEO of The Money Manual.
“But with housekeepers becoming more in demand as fewer enter the profession, the middle class may be priced out,” he continued. “This may also vary by location. Housekeepers in some wealthy areas are routinely making six figures, as there isn’t enough supply to meet the demand.”
Handyman Services
For homeowners, which many people in the middle class are, handyman services are also likely going to be out of reach in the coming years.
“It’s great to be able to call a repair person if something in your home breaks or you need something put together or installed,” Stearn said. “But with fewer people choosing to go work, these types of roles and demand [keep] increasing [and] the middle class may find themselves stuck figuring out how to do many of these things themselves on YouTube.”
Healthcare Services
According to the U.S. Census Bureau, almost 10% of Americans were uninsured in 2022. While middle-class households are more likely to have some kind of health coverage — even if it’s private — the high cost of insurance, treatments and even routine procedures could price some families out.
“While there are ongoing debates about healthcare reform, costs for insurance premiums, out-of-pocket expenses and prescription medications continue to rise. While healthcare advances and the resulting improvement in treatments are very important to people, they have a major impact on rising costs,” Kullberg said.
It might take more than five or so years, but middle-class Americans still face the very real problem of rising healthcare costs.
“If there are changes in healthcare policies as well as decreases in employer-provided benefits for healthcare coverage, access to affordable healthcare will be one of the major challenges that middle-class families will face financially in the coming decades,” Kullberg said.
Child Care
Last but not least is child care — particularly babysitting, live-in nannies and day care.
“Everyone talks about how expensive day care is, but you can still afford to get a local teen to babysit for a night out, right? Not necessarily,” Stearn said. “Babysitting costs have been rising considerably over the past few years, even outpacing inflation.”
According to Care.com, babysitters charge anywhere from $17.81 to $26.83 an hour, on average, though rates vary by location. Even a few hours out could easily cost $50 to $80, and that’s assuming the sitter only charges the average and you have one child — care for multiple kids tends to cost extra.
Child care in general is becoming pricier, though.
“Child care has long been a costly endeavor, with higher wages for child care workers, regulatory requirements (from licensing to staff-to-child ratios) and investment in early childhood education programs that have led to increased child care expenditures,” Kullberg said.
Day care alone can easily cost hundreds or thousands of dollars a month, and with other bills to pay, this just isn’t a feasible expense for many middle-class families.
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