Was Morgan's family supposed to be wealthy?

They moved from CT to CA and claim to be well-off. Morgan is a prep school student and the mother made a comment about how he was good at driving a yacht. I guess these people are rich? The only problem was the house they now live in in CA. It's quite a dump. Were they not rich anymore or something? That house was just average looking. They certainly didn't look like they were swimming in money to me.