A family-of-four needs to earn over $100,000 a year just to maintain a ‘minimal’ quality of life in the land of the American Dream – yet less than half US households can afford to reach that threshold.

A recent study by the Ludwig Institute for Shared Economic Prosperity explored what it takes for Americans to maintain a ‘minimal quality of life’ (MQL) – defined as the ability to afford basic necessities like housing, food, healthcare and modest leisure activities. 

But the results revealed that the bottom 60 percent of households across the country fall far short of the income needed to reach even the baseline.

Over the past two decades alone, the study found that the cost of living in the U.S. has nearly doubled – soaring by a staggering 99.5 percent. 

A single working adult with no children needs nearly $45,000 a year just to cover basic living expenses – while a working couple with two children must shell out a staggering $120,302 annually just to meet essential needs. 

‘The MQL reveals the harsh reality that the American dream, with its promises of well-being, social connection, and advancement, is out of reach for many,’ the study’s conclusion read.

‘Rising costs in essential areas like housing, healthcare, and education significantly outpace wage growth, leaving millions struggling to attain even a minimal quality of life.’

The sobering study, published in May, put the American Dream under a harsh spotlight – asking whether the reality of today’s economy still lives up to the promise of a fulfilling life for those who work hard. 

A recent study exploring what it takes for Americans to maintain a ‘minimal quality of life’ (MQL) found that over the past two decades alone, the cost of living in the US has nearly doubled – soaring by a staggering 99.5 percent

A single working adult with no children needs nearly $45,000 a year just to cover basic living expenses – while a working couple with two children must shell out a staggering $120,302 annually just to meet essential needs (pictured: study findings)

To get to the truth, the institute zeroed in on what it calls a ‘minimal quality of life’ – a no-frills basket of must-have goods and services that cover everyday expenses, letting families live decently and build a better future. 

The essentials factored in included raising a family, housing, transportation, healthcare, food, technology, clothing and basic leisure – the core building blocks of everyday life. 

Leisure costs were defined as simple ‘free-time’ activities – including access to cable TV and streaming services, plus enough money for six movie tickets and two baseball game tickets annually. 

‘MQL Index goes beyond traditional cost-of-living measures  to provide a more comprehensive understanding of what it takes to secure a foothold on the bottom rung of the American dream ladder and have a real opportunity to climb it over time,’ the authors explained.

However, the study painted a grim, harsh reality: the American Dream is slipping away, already out of reach for more than half of the country’s lower-income households. 

The culprit? Soaring costs across nearly every aspect of life over the past two decades. 

Shockingly, more than half of Americans can’t even afford something as critical as a $2,000 medical emergency, the study revealed.

Since 2001, the costs of housing and healthcare needed to maintain even a baseline quality of life have skyrocketed – soaring by 130 percent and 178 percent respectively. 

More than half of Americans can’t even afford something as critical as a $2,000 medical emergency, the study revealed

This crisis is clearly reflected in the growing number of young adults still living with their parents – with the percentage of 25- to 34-year-olds in multigenerational households jumping from just 9 percent in 1971 to 25 percent by 2021. 

The number of Americans delaying medical treatment hit a record high in 2022, with 38 percent admitting they put off care due to the cost – a troubling sign of just how unaffordable basic health needs have become, according to the study.

More than half of US adults – specifically 53 percent – have reportedly delayed major life goals due to financial hardships.

Lower-income workers often turn to convenient options like eating out – but even that has become a luxury. 

Since 2001, the cost of dining out has skyrocketed by 134 percent, outpacing overall food price increases by a staggering 92 percent, the study revealed.

Grocery store prices have surged even more dramatically, jumping by 24.6 percent since 2019 – putting even basic meals further out of reach for many families. 

Raising a family is yet another area hit hard by rising costs, making it increasingly difficult for even a small, traditional household to reach the minimal standard of living.

Daycare costs have skyrocketed by more than 130 percent since 2001, the study revealed.

The number of Americans delaying medical treatment hit a record high in 2022, with 38 percent admitting they put off care due to the cost – a troubling sign of just how unaffordable basic health needs have become

Meanwhile, the price of year-round care for school-aged children has surged 106 percent over the past two decades – placing an even greater burden on working families. 

Since 2001, the average amount needed to attend an in-state college has soared by 122 percent, while even the cost of a simple trip has jumped 35 percent just since 2019.

‘I get tired of the ‘Stop your Starbucks latte habit’ advice, because in reality it’s not people’s fault,’ financial planner Laura Lynch told CNBC in regards to the study.

‘The structures around us have created an expectation of a lifestyle that is increasingly becoming unreachable for folks,’ she added.