While $250,000 per year does not qualify a person for the vaunted 1%, it does still make a household upper-class. This is true in almost any city in America outside of San Francisco and Manhattan where the cost of living is exorbitantly high. Family sizes are shrinking, as well, so $250,000 is typically only supporting an average of two kids, whereas only a few decades ago, an average of four children or more would be present in the same conditions, lowering the overall standard of living in the household.
A combined annual income of $250,000 is 5 times the median household income for the United States. Furthermore, it's significantly more than the vast majority of people in the United States earn. It should, therefore, continue to be considered wealthy until there is better distribution of wealth throughout the United States.
As the middle class recedes into a slim region of people, more and more people are becoming impoverished. Even those who work two jobs to make a living are unlikely to see $250,000 in several years worth of work, making the number an astronomical amount of wealth for many people.
With today's average income around $50,000 per year per person, an annual income of $250,000 per year should be considered wealthy. Such a salary is enough to pay off most houses within several years, rather than having to take out a 15 to 30 year loan to pay a mortgage. The excess income gives families significant financial flexibility for purchasing power, vacations, investments and the like.