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Americans now need to make $120K a year to afford a typical middle-class life and qualify to purchase a home, one expert discusses.

“I think most of us in America would define the middle class as somebody who can work a 40-hour-a-week career and can have the income to purchase the average home in America,” Freddie Smith, an Orlando realtor and TikTok creator, told Fox News Digital.

The TikToker, whose videos explore millennial and Gen Z struggles to afford a home and the general cost of living in today’s economic climate, dissected the common factors of living a middle-class existence.

“A lot of us grew up middle class, and we watched what middle class was in the 80s and 90s as millennials. And nowadays, what has moved the goalpost more than anything is the housing market,” the relator said.

Smith explained how, just a few years ago, $60-$70K a year would have been sufficient to qualify for a home. 

With the average cost of a house being around $400K-$420K in 2024, people’s salaries would need to be around $120K a year for people to even qualify, Smith explained.

The realtor highlights how this wage-to-housing gap has forced many people to rent for a longer period.

“Rent prices are taking up 30-40% of people’s income, making it harder for them to save for a house. So it’s this perpetual cycle that is keeping people out of the middle class,” he explains, noting this trend has been continuing at a rapid pace over the last few years.

Smith also explained how a $120K salary, even without children, becomes a far lower number when confronted with the crippling debt most Americans are facing today.

Is 100k salary the new middle class? ??

“Most people are carrying student loan debt, which is at an all-time high, and the average payment in the country is $500 a month for your college degree. [There are] some people I’m seeing in my comment section saying $500, I wish, it was $1,200 a month for me,” said Smith.

Credit card debt is also at a record high in America, and while Smith acknowledges that reckless spending could be a factor, he has learned from many Americans commenting on his posts that many are forced to use their cards for groceries because they ran out of money.

According to DQYDJ, the average American income in 2023 was roughly $69K a year, with only 18.8% percent of Americans reaching $100K or more a year. According to the same source, the top 10 percent of individual earnings started at $135,605 a year.

The middle class is in a segmented state, Smith argues, largely determined by how much debt one finds themselves in. 

“If you are someone who bought a house before 2020 and you have it paid off or you have a 3% interest rate, you are not burdened by the housing costs like the 2024 adults are now,” the relator said, explaining how debt, especially college debt, housing costs and childcare are burdening millennials and Gen Zers starting their lives.

“People are spending about $1,200 to $1,500 a month on daycare, and I’ve even heard it as much as $3,000-$4,000. So when you add in somebody who’s renting for $2,500, $2,000 for daycare, $1,000 for two college loans, just that alone, you need $100,000 as an income just for that,” said Smith.

For slightly older individuals who had a chance to pay off their debt and have grown-up children, $70K remains a comfortable middle-class wage to them.

“‘These millennials are whining. These Gen Zers just work harder.’ If you bought your house before and don’t have those other payments, that’s really the three-layered cake. Housing, college [debt] and daycare” explained Smith, highlighting these three factors greatly determine your middle-class placement.

As a result of high housing costs, many young people are choosing to stay at home with their families to save funds.

Smith explains how he is seeing communal living go even further in Florida, where separate families are choosing to live under one roof.

“Many families [with] 3 or 4 adults and [say] five children, they all split a big house, and they all take care of each other. You can see that they have a lot of toys and they’re pooling their money,” Smith detailed.

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The TikToker enumerates how millennials and older Gen Zers had a “difficult” hand dealt to them. Younger Gen Zers, however, have a lot of “opportunity” to “crush in today’s economy” if they plan carefully to avoid debt and make smart financial choices.

“The millennials, they’re the pinched generation where college essentially stopped working for most. The debt piled up, and the old American dream died, and we got left holding the bag,” he said.

The creator said that through posting on TikTok, he has learned a tremendous amount about the everyday struggles real Americans are facing through his comment section.

“People in America, real society, are sharing all this with me. And I’m learning at a rapid pace from all different individuals. It’s not just googling it, or asking 100 college students what they think. It’s thousands and thousands of people sharing what’s going on,” said Smith.

The realtor discussed how there is a “bigger conversation” around an evolving American Dream that we’re likely to see take place over the next few years.

“We’re basically redefining the American dream from top to bottom, like the way that we see work and work-life balance,” said the creator, explaining how the idea of owning a home might grow old alongside past generations.

“I don’t even know if millennials and Gen Zers want to follow that path of buying a house and living in it for 40 years and staying at the same job for 40 years. I don’t think creatively, work-life balance wise, is also what our long-term play is,” he said.

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Entertainment

Gary Lineker says ‘right time’ to leave Match Of The Day as he hints of changes to show’s format

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Gary Lineker says 'right time' to leave Match Of The Day as he hints of changes to show's format

Gary Lineker has said it is “the right time” to leave Match Of The Day and hinted the BBC could change the format of the Premier League highlights show.

The 63-year-old will step down as host at the end of the season and described his time on the show as an “absolute joy and privilege”.

Speaking on his podcast, The Rest Is Football, he said: “It has been an absolute joy and privilege to present such an iconic show for the BBC.

“But all things have to come to an end.”

Lineker went on to say the broadcaster enters a new three-year deal to host top-flight highlights, and that to stay on for another 12 months “would be a bit weird”.

“I think the next contract they’re looking to do Match Of The Day slightly differently, so I think it makes sense for someone else to take the helm.

“I bowed out in my football career when I felt it was the right time. I feel this is now the right time.”

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Lineker refused to speculate who would be taking his place, as rumours grew around Mark Chapman, the regular Match Of The Day 2 presenter, Football Focus host Alex Scott, and BBC sports coverage presenter Gabby Logan.

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“Obviously I don’t know who it’ll be, and I would never tell publicly my preference, I don’t think that’d be the right thing to do – but whoever it is, I would say be yourself,” he said.

“I had to fill the ginormous shoes of certain Des Lynam.

“…I would say just be yourself and enjoy it, it’s a wonderful programme to be a part of. It was brilliant before I took over, and it will be brilliant after I leave.”

Lineker pictured with former MOTD host Des Lynam in 2009. Pic: PA
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Lineker pictured with former MOTD host Des Lynam in 2009. Pic: PA

Lineker has hosted Match Of The Day since 1999 and will have presented the show for more than a quarter of a century when he leaves in May 2025.

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He will continue with the MOTD Top Ten podcast alongside his podcast, which also features BBC pundits Alan Shearer and Micah Richards.

The former England striker has been the BBC’s highest-paid on-air talent for seven consecutive years and was estimated to have earned £1.35m in the year 2023/24.

The BBC said future plans for Match Of The Day would be “announced in due course”.

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Business

UK economy grows by 0.1% between July and September – slower than expected

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UK economy grows by 0.1% between July and September - slower than expected

The UK economy grew by 0.1% between July and September, according to the Office for National Statistics (ONS).

However, despite the small positive GDP growth recorded in the third quarter, the economy shrank by 0.1% in September, dragging down overall growth for the quarter.

The growth was also slower than what had been expected by experts and a drop from the 0.5% growth between April and June, the ONS said.

Economists polled by Reuters and the Bank of England had forecast an expansion of 0.2%, slowing from the rapid growth seen over the first half of 2024 when the economy was rebounding from last year’s shallow recession.

And the metric that Labour has said it is most focused on – the GDP per capita, or the economic output divided by the number of people in the country – also fell by 0.1%.

Reacting to the figures, Chancellor of the Exchequer Rachel Reeves said: “Improving economic growth is at the heart of everything I am seeking to achieve, which is why I am not satisfied with these numbers,” she said in response to the figures.

“At my budget, I took the difficult choices to fix the foundations and stabilise our public finances.

“Now we are going to deliver growth through investment and reform to create more jobs and more money in people’s pockets, get the NHS back on its feet, rebuild Britain and secure our borders in a decade of national renewal,” Ms Reeves added.

The sluggish services sector – which makes up the bulk of the British economy – was a particular drag on growth over the past three months. It expanded by 0.1%, cancelling out the 0.8% growth in the construction sector

The UK’s GDP for the the most recent quarter is lower than the 0.7% growth in the US and 0.4% in the Eurozone.

The figures have pushed the UK towards the bottom of the G7 growth table for the third quarter of the year.

It was expected to meet the same 0.2% growth figures reported in Germany and Japan – but fell below that after a slow September.

The pound remained stable following the news, hovering around $1.267. The FTSE 100, meanwhile, opened the day down by 0.4%.

The Bank of England last week predicted that Ms Reeves’s first budget as chancellor will increase inflation by up to half a percentage point over the next two years, contributing to a slower decline in interest rates than previously thought.

Announcing a widely anticipated 0.25 percentage point cut in the base rate to 4.75%, the Bank’s Monetary Policy Committee (MPC) forecast that inflation will return “sustainably” to its target of 2% in the first half of 2027, a year later than at its last meeting.

The Bank’s quarterly report found Ms Reeves’s £70bn package of tax and borrowing measures will place upward pressure on prices, as well as delivering a three-quarter point increase to GDP next year.

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US

RFK Jr chosen as Donald Trump’s health secretary – as president-elect says he will do ‘unbelievable things’

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RFK Jr chosen as Donald Trump's health secretary - as president-elect says he will do 'unbelievable things'

Donald Trump has chosen vaccine sceptic Robert F Kennedy Jr as his new health secretary and said he will do “unbelievable things”.

The news was announced by Donald Trump Jr on X, before the president-elect confirmed the appointment just moments later.

Former Democrat RFK Jr, the nephew of former president John F Kennedy, had been running as an independent presidential candidate but dropped out of the race and endorsed Mr Trump in August.

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From August: Kennedy family criticises RFK Jr after Trump endorsement

In return for Mr Kennedy’s support during the election, president-elect Trump pledged to give him a “big role” – and RFK Jr’s preference for the health position was widely reported.

Mr Trump spoke on Thursday night at a gala, hosted at his Mar-a-Lago retreat in Florida, which included tech billionaire Elon Musk and actor Sylvester Stallone.

Directly addressing RFK Jr, who was in the audience, Mr Trump said: “We want you to come up with things… and ideas… and what you’ve been talking about for a long time. I think you’re going to do some unbelievable things. Nobody’s going to be able to do it like you.”

The health and human services (HHS) department includes the Food and Drug Administration, the Centers for Disease Control and Prevention, Medicare, Medicaid and the National Institutes of Health.

RFK Jr will “restore these Agencies to the traditions of Gold Standard Scientific Research, and beacons of Transparency, to end the Chronic Disease epidemic, and to Make America Great and Healthy Again,” the president-elect wrote on X.

Donald Trump and Robert F Kennedy Jr in October during the presidential campaign. Pic: Reuters
Image:
Donald Trump and Robert F Kennedy Jr in October during the presidential campaign. Pic: Reuters

Mr Trump added: “For too long, Americans have been crushed by the industrial food complex and drug companies who have engaged in deception, misinformation, and disinformation when it comes to Public Health.

“The Safety and Health of all Americans is the most important role of any Administration.”

Mr Kennedy is a known vaccine sceptic who has repeated misinformation on multiple occasions, including the discredited theory that childhood immunisations cause autism.

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The RFK Jr-led health department will “play a big role in helping ensure that everybody will be protected from harmful chemicals, pollutants, pesticides, pharmaceutical products, and food additives that have contributed to the overwhelming Health Crisis in this Country,” the president-elect added.

Earlier, his son Donald Trump Jr was the first to confirm the appointment, writing on X: “Robert F Kennedy Jr will be The Secretary of Health and Human Services! Promises Made Promises Kept.”

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When Trump met Obama and Biden

RFK Jr’s position will need to be confirmed with a Senate vote – but even with the chamber under Republican control, his appointment may face opposition because of his views on health issues.

Before Mr Trump announced his choice, Mr Kennedy had already claimed the new president would push to remove fluoride from drinking water on his first day in office. The addition of the compound has been cited as helping to improve dental health.

The department RKF Jr is hoping to oversee has more than 80,000 employees across the United States.

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