A report released last week by state Comptroller Thomas P. DiNapoli confirmed what many New Yorkers already feel every time we pay for groceries, the mortgage or the electric bill: incomes may be rising, but purchasing power is not.
According to the report, median household incomes increased in every New York county from 2019 to 2024, but they did not keep pace with the cost of living when adjusting for the 23.1% inflation during that time period.
Statewide, the inflation adjusted median household income increased by $1,688, or 2%, from 2019 to 2024. In Niagara County, real median household income increased 1.9%, or $1,302. Orleans County saw the same 1.9% increase, but just an increase of $1,209. Erie County also saw similar numbers.
But not every county experienced growth. In 23 of New York’s 62 counties, real median household income actually declined. Genesee County saw a 1.6% decrease (-$1,173), while Wyoming County experienced a 3.3% drop (-$2,335).
The numbers show that even though wages are increasing, inflation is eating away at the value of those earnings. Imagine how much higher our purchasing power would be, if not for inflation.
Median household income — the middle point of a community’s earnings, which marks where exactly half of households make more and half make less — is a metric of the economic health, standard of living and purchasing power of the area.
When median household income increases, it indicates a community has growing economic opportunities, with a high demand for labor and wages that support more income to spend on goods, services, housing and savings, as well as disposable income.
When median household income goes down, it shows job loss, wage stagnation and affordability struggles, leading to households cutting back on discretionary spending.
But income figures alone can be misleading.
When evaluating median household income, economists often talk about “real” median household income, in which the number has been adjusted for inflation. If median income goes up, but inflation and the cost of living rise faster, purchasing power actually decreases, regardless of what appears on paper.
That is precisely what many New Yorkers are experiencing today.
The comptroller’s report, based on U.S. Census Bureau American Community Survey estimates, shows nominal income growth across the state. Yet after adjusting for inflation, many families are struggling simply to maintain the same standard of living they had five years ago.
“Household incomes for too many New Yorkers have not kept pace with the stubborn inflation we continue to feel today,” DiNapoli said in a press release. “When real incomes decline, people struggle to maintain the same quality of life.
“Continued focus on addressing the state’s affordability challenges, as well as efforts to increase the growth of well-paying jobs across the state, are needed to ensure that all residents have the opportunity to thrive.”
He is right. Affordability remains one of the defining economic issues of our time. Addressing affordability while also creating more well-paying jobs across the state must be a priority; otherwise, even communities seeing income growth will continue to feel financially stuck.
We got more news this week that may offer some future relief.
U.S. Sen. Chuck Schumer visited Brooks’ House of Bar-B-Q in Oneonta on Monday to promote the proposed Family Grocery and Farmer Relief Act, a bill aimed at reducing meat prices by breaking up monopolies in the meat industry.
Schumer argued that four major companies dominate the beef, pork and chicken markets, allowing them to keep prices artificially high for consumers, restaurants and farmers.
Brooks’ owner Ryan Brooks said rising meat and utility costs have created major challenges for the restaurant, which purchases large amounts of chicken, beef and pork each year, and hoped that the bill could help lower costs for businesses and families.
“One small hike is really a huge hike for us,” he said.
New Yorkers do not just need bigger paychecks. They need paychecks that actually go further. Whether or not Schumer’s proposal becomes part of the next federal budget, it’s bringing attention and a proposed solution to a problem that affects people on both sides of the political aisle.