6 Things Even The Upper Middle Class Can’t Afford In 2025
Written by
Cindy Lamothe
Edited by
Amen Oyiboke
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In 2025, the world seems to be shifting faster than ever, and even the upper middle class is feeling the pinch.
While many may have once felt safe in their financial bubble, rising costs and economic changes have made some things just out of reach for this group lately
From everyday luxuries to once-affordable investments, it turns out there are some things even those with a comfortable lifestyle can’t quite swing anymore.
Here’s what’s now too expensive, even for the upper middle class.
Owning a Second Property
Quentara E. Costa, CFP and owner of Powwow, LLC, has noticed a major shift.
“What I’ve noticed trending are upper-middle-class families with incomes anywhere from $250,000-$500,000, and they’re completely sunk over the expense of owning a second property,” Costa said.
She noted it rarely matters if it’s an investment property or for personal use. “They are in a game of spinning plates of various debts to make the numbers come together year over year.”
She said a lake or beach house may be hit hardest with insurance skyrocketing for anything in a high-risk zone (think flood) and with property valuations increasing,
And property taxes have been relentless.
“I rarely come away feeling like they’re spending irresponsibly, it’s just that there is not enough income to support non-discretionary and large and irregular expenses.”
College Education Without Substantial Debt
According to the American Sociological Association, tuition increases are part of the story of exploding student loan debt. At private institutions, average tuition doubled — from $19,000 to $38,000 — after adjusting for inflation.
Gagan Saini, CEO of We Buy Houses in Central Valley has witnessed college education without substantial debt become virtually impossible for upper-middle-class families.
He said parents earning $150,000-$250,000 annually now find themselves caught in a painful middle ground — too wealthy to qualify for meaningful financial aid but not wealthy enough to afford the $90,000-plus annual price tag at prestigious private universities.
“I recently advised a family with a household income of $220,000 who discovered they would need to contribute nearly $75,000 per year for their daughter’s education at an elite university,” said Saini.
Despite their impressive income, he said they ultimately chose a state school to avoid depleting retirement accounts or taking on massive Parent PLUS loans that would delay their retirement by a decade.
Housing in Desirable Metro Areas
Saini said he’s seen housing in desirable metro areas slip beyond reach for many upper-middle-class professionals.
Even families with dual six-figure incomes struggle to purchase modest homes in areas with strong school districts, reasonable commutes, and community amenities.
Despite earning in the top 15% of American households, Saini works with numerous clients who find themselves priced out of neighborhoods they could have easily afforded five years ago.
He said one client couple — both attorneys with a combined income of $280,000 — spent eighteen months searching for a home in their target suburb, only to be outbid on eleven properties before finally settling for a home 40% smaller than what they initially sought, at a price 30% above their original budget.
Early Retirement
Another area of high cost, Saini has observed, is that early retirement has become an abandoned dream for upper-middle-class Americans.
The traditional goal of stepping away from full-time work at age 60 has given way to planning for extended careers into the late 60s or even 70s.
“I counsel clients earning $200,000-plus who now face the stark reality that even with diligent saving, market volatility, healthcare costs, and expanded longevity projections demand an additional decade of working years compared to previous generations,” said Saini.
He said one executive he advised recently calculated that despite maxing out his 401(k) for twenty years and accumulating significant assets, he would need to work until age 68 to maintain his current upper-middle-class lifestyle in retirement.
Luxury Travel
Saini has equally noticed that luxury travel experiences have faded from upper-middle-class lifestyles.
International premium-class air travel, five-star accommodations, and high-end guided experiences have seen price increases that far outpace inflation.
Families who previously splurged on annual international trips now find themselves priced out of experiences they once enjoyed.
“I had clients who traditionally spent two weeks in Europe each summer downgrading to domestic road trips after discovering their usual trip would cost nearly three times what they paid in 2019 –a price increase impossible to absorb even on their combined $300,000 income without compromising other financial goals.”
Quality Healthcare
Quality healthcare without financial strain has also become increasingly elusive for upper-middle-class families.
Despite employer-sponsored insurance, rising premiums, higher deductibles, and increasing out-of-pocket maximums have created a significant economic burden.
“I work with families who appear wealthy on paper but face difficult choices about medical care due to cost concerns,” said Saini.
He explained that a client family earning $190,000 annually recently postponed recommended orthopedic surgery for their teenage athlete because their “gold” insurance plan would still require over $12,000 in out-of-pocket expenses.
“Money they couldn’t spare without compromising their emergency fund or college savings goals.”
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