You Might Be 'Lower Class' If Your Home Value Is Below This Number

While the value of your home doesn't necessarily define your socioeconomic status, building equity in your property can certainly contribute to your overall wealth, especially when compared to renters. Additionally, knowing where you stand economically can help you make smart money decisions that lead to future financial success. According to Boldin, in 2023, having a home value of $209,920 or less put you in low-income territory. Obviously, many factors can determine your overall net worth, but having a home value below $209,000 more than likely indicates a lower income level. 

Typically, those with a lower incomes own homes valued around $65,000 less than those with middle incomes. Boldin says that middle-income earners own homes with a value of at least $274,420, while upper-income homeowners have properties valued at $405,160 or more. Zillow reports the average home value in the U.S., as of October 2025, is $360,727, which puts lower-income homeowners well below the country's average. However, many low-income people tend to actually live in their homes longer than both middle and high-income earners, meaning that a once traditionally thought-of low-income home can experience a significant increase in value over time — especially if there is a rise in neighborhood desirability or even a rise in the overall housing market.

While it's true that you can't do much to change the current state of the housing market or improve your neighborhood all on your own, fortunately you can take steps to affordably increase your home's value – even if you don't live in the most desirable neighborhood. Surprisingly, Bankrate lists decluttering and cleaning as a top way to increase your home's value, which is something you can easily do yourself if you have time. Improving curb appeal can also lead to a significant boost, and this can be accomplished as easily as doing things like landscaping and working on your home's exterior so it looks good to someone walking by.

Touching up interior and exterior paint, if needed, can also help freshen up your home, making it feel more modern inside and out. The kitchen and bathrooms in your home are also important aspects to keep up with, but there are certain bathroom upgrades that might be a waste of money – and the same goes for the kitchen. In the kitchen, focus on upgrades that can boost home value, such as replacing flooring, upgrading the lighting, or even adding a new backsplash. For your bathroom, new flooring can increase value, while Homelight says replacing or putting in a vanity — with new countertops, faucets, and a sink — can be one of the best ways to easily raise ROI while making your home feel more comfortable.