In Seattle, households with incomes of $221,562 are still considered middle class. However, those earning less than $74,223 are not yet in this middle-income group. Roughly 66% of the population 25 and over have a bachelor’s degree or higher and there are plenty of high-profile local companies to work for, including Amazon, Starbucks and Boeing.
If you are ready to match up with local advisors who can help you achieve your financial goals, then let’s start.
6. Irvine, California
While the healthcare and technology industries contribute to Irvine’s economy, University of California, Irvine remains the city’s largest employer with more than 25,000 faculty and staff7. Middle-class families in this Orange County city earn between $70,869 and $211,548 annually.
7. Gilbert, Arizona
Gilbert is located in the Phoenix metropolitan area. Gilbert’s population has grown by 31% from 208,000 residents in 2010 to 273,000 in 20228. Median household income of $104,802 sits comfortably in the middle-class range of $70,217 and $209,604 per year.
8. Scottsdale, Arizona
Scottsdale is a popular tourist destination with many resorts, spas, and golf courses. Located about 30 minutes north of Gilbert, this city is also home to healthcare and technology companies9. Middle-class families here earn between $66,395 and $198,194.
9. Plano, Texas
Located in the Dallas-Fort Worth Metroplex, Plano is home to 287,000 residents. The local economy is supported in part by the presence of some of the biggest names in the banking sector. JP Morgan Chase, Capital One, and Bank of America are the three largest employers in Plano, with a combined total of nearly 20,000 workers.10. Middle-class families here earn between $63,651 and $190,004. Plano has the lowest median home value out of the top ten, averaging $487,000.
10. Chandler, Arizona
Chandler is the third city in the Phoenix area among the top 10 cities. Among the largest employers here are Intel, Wells Fargo and the local school district11. Middle-class families here earn between $63,391 and $189,226 annually, while the median home value in Chandler lies just above Plano at $492,000.
What does it take to be middle class in the 50 states?
Maryland, Washington, D.C., and Massachusetts have the three highest middle-class states statewide. In all three places, it requires an annual income of more than $60,000 for families considered middle-class. New Jersey ($59,828) and New Hampshire ($59,272) round out the top five.
At the other end of the spectrum, Mississippi is the state that requires the lowest annual income to be part of the middle class ($32,640). Magnolia State follows West Virginia ($34,336), Louisiana ($34,898), Arkansas ($35,194) and Alabama ($36,122).
Data and methodology
To determine the income thresholds in the middle class, SmartAsset analyzed the 2021 American Community Survey data on median household income in all 50 states, as well as the 100 largest US cities. We relied on a variation of Pew Research’s definition of middle-income households, which sets the middle-class salary range at two-thirds to double the median salary in the United States. We used the local average salary for states and large cities to calculate the variability of financial realities between regions.
1Pew Research Center
2Society and Economics Research Cost of Living Index, Third Quarter 2022
3Comprehensive Annual Financial Report for the City of Fremont, CA 6/30/2022
4US Census Bureau ACS 1 2021
5Comprehensive Annual Financial Report for the City of Arlington, VA 6/30/22
6Zillow, data pulled 4/6/23
7Comprehensive Annual Financial Report for the City of Irvine, CA 6/30/22
8US Census Bureau Population Estimate Program 2022
9Comprehensive Annual Financial Report for the City of Scottsdale, AZ 6/30/22
10Comprehensive Annual Financial Report for the City of Plano, TX 6/30/22
11Comprehensive Annual Financial Report for the City of Chandler, AZ 6/30/2021
Advice for middle-income people
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Reassess housing costs. Households that spend more than 30% of their income on rent, mortgage payments, and other housing expenses are considered housing costs charged by the Census Bureau. If your housing costs exceed this limit, you may want to consider downsizing. SmartAsset has it several tools To assess your housing budget, including a calculator designed to help you decide if you want one Rent or buy in a specific market.
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Consider deferring retirement. Middle-income earners nearing retirement may want to consider delaying it for a few years. Postpone retirement until the age of 70 It means you will reach your limit Social security Benefits and give your retirement savings extra time to grow. Not everyone is in a position to continue working until age 70, but this may be an option if you’re worried about running out of money in retirement.
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Work with an expert. Financial advisors Not just for the rich. Many counselors work with middle-class families, helping them save for homes, plan for retirement or save for college. Finding a financial advisor doesn’t have to be difficult. Free SmartAsset tool It matches you with up to three vetted financial advisors serving your area, and you can interview your own advisors at no cost to determine which one is right for you. If you are ready to find a counselor who can help you achieve your financial goals, let’s start.
Questions about our study? Contact press@smartasset.com.
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