Determining Middle Class Status Across America
Defining middle class status can be challenging, especially when rising living expenses outpace income growth. A recent report by SmartAsset analyzed data from the U.S. Census Bureau and Pew Research Center to determine income ranges that qualify households as middle class in each of the 50 states and 345 largest cities.
National and Regional Middle Class Income Ranges
The national middle class income range, based on the Pew Research definition, is between two-thirds and double the area’s median salary. As of 2022, the average median household income in the U.S. was $73,914. Therefore, the national middle class income range is approximately $49,271 to $147,828.
Across the nation’s largest cities, the middle class income range falls between $51,558 and $154,590. However, this range varies significantly depending on location.
State-Level Middle Class Ranges
New Jersey has the most significant gap between the lower and upper-class income ranges, with a difference of $128,468. A household income of at least $64,224 is considered middle class in New Jersey, while an income exceeding $192,692 qualifies as upper class.
On the other end of the spectrum, Mississippi has the lowest middle class income range. Earning between $35,142 and $105,438 qualifies a household as middle class in Mississippi.
City-Level Middle Class Ranges
Sunnyvale, California, boasts the highest middle class income range among the cities analyzed. Households need an annual salary of at least $113,176 to be considered middle income in Sunnyvale. To achieve upper class status in Sunnyvale, a salary of $339,562 is required.
In contrast, Detroit, Michigan, has the lowest middle class income range. An annual salary as low as $24,300 qualifies a household as middle class in Detroit.
Impact of Inflation
Inflation remains elevated in 2023, despite the Fed’s efforts to cool hiring. This affects the purchasing power of middle-class households, as their income growth often fails to keep pace with rising living expenses.
In conclusion, the definition of middle class can vary widely depending on location. Factors such as the cost of living and local economic conditions influence the income ranges that define middle class status. Understanding these variations is crucial for policymakers and individuals seeking to improve economic mobility and reduce income inequality.
