In recent years, the economic landscape in the United States has experienced significant shifts, leading to a widening wealth gap between the rich and the middle class. As of 2025, this disparity continues to grow, with the top 10% of households holding a substantial portion of the nation’s wealth.
Middle-class families face increasing challenges in affording basic comforts that were once considered staples of middle-class life, such as quality education, desirable housing, comprehensive healthcare, leisure travel, and secure retirement plans.
This article explores five key areas where the wealthy have a distinct financial advantage of affordability over middle-class families. It highlights the economic and social factors driving these trends and their implications for the future of economic stability in America.
Here are the primary five things that rich families can still buy that the middle class can no longer afford in 2025:
1. Private Education from Pre-K Through College
The cost of private education has skyrocketed, making it increasingly difficult for middle-class families to afford it. In the U.S., private school tuition has reached all-time highs due to inflationary pressures. The annual tuition for a day school rose about 7.4% to $49,284 on average, and for a boarding school, it climbed roughly 5.3% to $73,080, according to an annual report on the sector released by S&P Global Ratings.
These figures are significantly higher than the national average private school tuition of approximately $13,300 per year, with private high schools averaging about $17,044 annually. States like Connecticut have notably higher averages, with the overall private school tuition reaching $30,840 per year and high school tuition averaging $42,701 annually.
Elite universities, such as Ivy League ones, pose an even more significant financial challenge. For instance, Harvard’s total cost for the 2024-2025 academic year is around $82,866. Financial aid packages can help, but they often fall short for many middle-class families. The rising education costs at all levels have created a significant barrier for middle-class families seeking quality educational opportunities.
2. Single-Family Homes in Desirable Urban/Suburban Areas
The housing market in desirable urban and suburban areas remains out of reach for many middle-class families. Despite a subdued growth forecast for 2025, with home prices expected to rise by about 3% or less, the affordability issue persists.
The supply of homes remains tight, and while inventory is increasing, it is still below historical averages. This situation and stagnant income growth mean that middle-class families often cannot afford homes in areas with good schools and amenities.
The need for affordable housing is a pressing concern in many metropolitan areas, not just in expensive cities like Manhattan or San Francisco but also in suburban regions. The rise in housing prices has discouraged many residents from owning middle-class houses or living near where they work. This trend highlights the widening wealth gap, as wealthy families purchase homes in these desirable locations while middle-class families are forced to explore cheaper options.
3. Comprehensive Healthcare Without Financial Strain
Healthcare costs continue to rise, placing a significant financial burden on middle-class families. Employer-sponsored health care coverage is expected to increase by about 9% in 2025, surpassing $16,000 per employee.
Additionally, ACA Marketplace premiums are projected to rise by a median of 7%. These increases force middle-class families to make difficult financial decisions between healthcare needs and other essential expenses.
Wealthy families, on the other hand, can afford premium health insurance plans with better coverage and lower deductibles. This disparity in healthcare access exacerbates the financial strain on middle-class families, who often have to choose between comprehensive healthcare and other financial priorities.
4. Multiple Family Vacations Per Year
The rising travel costs have made regular family vacations increasingly unaffordable for middle-class families. Travel expenses are projected to increase, with the average trip cost rising significantly. As a result, many families are reducing the number of trips they take annually. Wealthy families enjoy multiple leisure trips each year, often to luxury destinations that offer unique experiences.
Luxury destinations like Italy and Norway are popular among affluent travelers seeking personalized and memorable experiences. These trips are not only expensive but also require significant planning and resources that are beyond the reach of many middle-class families. The financial constraints faced by middle-class families limit their ability to take multiple vacations annually and enjoy more expensive leisure activities, impacting their overall well-being.
5. Retirement Security with Long-Term Care Options
Middle-class families face significant challenges in securing retirement and long-term care. Long-term care costs are substantial, with in-home care costing thousands monthly. Without comprehensive insurance plans, often unaffordable for middle-class families, these expenses can deplete savings and impact their quality of life.
As of 2025, the gap in middle-class retirement savings is significant and multifaceted. Middle-class households face several challenges:
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Retirement Savings Levels: The median retirement savings for middle-class households not yet retired is approximately $66,000, while retirees have around $186,000 in total household savings, excluding home equity. This is far below the $1.5 million often cited as necessary for a comfortable retirement.
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Financial Priorities: Middle-class families juggle multiple financial priorities, including paying off debt, building emergency savings, and saving for retirement. Only 24% of middle-class individuals believe they have saved enough for retirement.
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Retirement Fears: The top retirement fears include outliving savings, needing long-term care, and potential reductions in Social Security benefits. These concerns highlight the uncertainty and financial strain middle-class families face in retirement planning.
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Work Beyond Retirement Age: Due to financial pressures, many middle-class individuals expect to work past the traditional retirement age, with nearly half planning to retire after 65.
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Savings Rate: While some middle-income households save around 8% to 12% of their earnings for retirement, which is commendable, it often falls short of the recommended savings rate of 10% to 15%.
Overall, the retirement savings gap for the middle class in 2025 is characterized by inadequate savings, competing financial priorities, and a lack of confidence in retirement preparedness.
Wealthy families can afford comprehensive long-term care insurance and retirement planning, ensuring a comfortable elderhood. In contrast, middle-class families struggle to save adequately for retirement while managing current expenses. This disparity highlights the widening wealth gap and its implications for middle-class families’ financial stability and security in their later years.
Conclusion
The widening wealth gap in the U.S. has led to a scenario where many previously attainable middle-class luxuries are now reserved for the wealthy. Middle-class families face increasing financial strain due to rising costs in education, housing, healthcare, travel, and retirement planning.
These trends underscore the need for systemic changes to address the financial challenges faced by middle-class families and to ensure that they can regain their footing as a cornerstone of economic stability. Without such changes, the financial divide will continue to widen, with far-reaching societal implications.