Middle-class American families struggling to climb the social ladder may have better or worse luck depending on where they live, according to a new study.
"Since the 1970s, the American middle class has been shrinking," GOBankingRates said in a new study that looks at which states offer the best environment for the middle-class.
The personal finance website noted that the Pew Research Center defines middle-class or middle-income households as those with incomes that are two-thirds to double the U.S. medium household income. But according to Pew, the American middle class has been shrinking since the 1970s, when the percentage of middle-class adults in middle-class households decreased from 61% in 1971 to 50% in 2021. And the generational wealth gap between the haves and the have-nots only continues to grow.
Using Pew’s definition of middle class, GOBankingRates analyzed data from the U.S. Census Bureau’s 2019 American Community Survey to determine how much two-, three-, and four-person families need to earn in every state to qualify as middle class. Since middle-class families living in states that take the greatest share of their income struggle to become homeowners or to provide a college education for their children, GOBankingRates also analyzed education and housing as a measurement of class status, as well as income. States that had the highest cost of living in those three areas were the least affordable to be middle class.
Here, in ascending order, are America's top 10 least affordable states to be middle class.
10. Alaska
To be middle class in Alaska, two-person families must earn $57,776 to $172,466; three-person families must earn $62,818 to 187,516; and four-person families must earn $69,727 to $208,140. The state has an 80% high school graduation rate, and in-state college tuition and fees for the 2022-23 school year were $8,987. The median home listing price was $352,479, and the homeownership rate was 66.1%.
9. Rhode Island
To be middle class in Rhode Island, two-person families must earn $50,797 to $151,632; three-person families must earn $58,581 to $174,870; and four-person families must earn $72,251 to $215,674. The state has an 84% high school graduation rate, and in-state college tuition and fees for the 2022-2023 school year were $14,572. The median home listing price was $413,842, and the homeownership rate was 66.4%.
8. New Jersey
To be middle class in New Jersey, two-person families must earn $56,409 to $168,384; three-person families must earn $70,741 to $211,166; and four-person families must earn $86,287 to $257,572. The state has a 91% high school graduation rate, and in-state college tuition and fees for the 2022-2023 school year were $15,443. The median home listing price was $463,319, and the homeownership rate was $64.5%.
7. Connecticut
To be middle class in Connecticut, two-person families must earn $58,508 to $174,652; three-person families must earn between $68,170 to $203,492; and four-person families must earn $83,808 to $250,174. The state has an 89% high school graduation rate, and in-state college tuition and fees for the 2022-2023 school year were $15,612. The median home listing price was $371,718, and the homeownership rate was 68.5%.
6. Colorado
To be middle class in Colorado, a two-person family must earn $54,159 to $161,668; a three-person family must earn $60,635 to $181,000; and a four-person family must earn $171,100 to $212,240. The state has an 81% high school graduation rate, and in-state college tuition and fees for the 2022-2023 school year were $12,103. The median home listing price was $541,186, and the homeownership rate was 69.7%.
5. Washington
To be middle class in Washington State, a two-person family must earn $53,747 to $160,438; a three-person family must earn $61,211 to $182,720; and a four-person family must earn $71,747 to $214,170. The state has an 85% high school graduation rate, and in-state college tuition and fees for the 2022-2023 school year were $11,125. The median home listing price was $565,442, and the homeownership rate was 68.1%.
4. Oregon
To be middle class in Oregon, a two-person family must earn $46,467 to $138,708; a three-person family must earn $53,830 to $160,686; and a four-person family must earn $63,013 to $188,100. The state has an 80% high school graduation rate, and in-state college tuition and fees for the 2022-2023 school year were $12,881. The median home listing price was $479,558, and the homeownership rate was 63.6%.
3. Massachusetts
To be middle class in Massachusetts, a two-person family must earn $57,063 to $170,338; a three-person family must earn $71,220 to $212,596; and a four-person family must earn $87,939 to $262,504. The state has an 88% high school graduation rate, and in-state college tuition and fees for the 2022-2023 school year were $14,396. The median home listing price was $561,403, and the homeownership rate was 62.1%.
2. California
To be middle class in California, a two-person family must earn $52,681 to $157,258; a three-person family must earn $57,796 to $172,524; and a four-person family must earn $66,091 to $197,288. The state has an 85% high school graduation rate, and in-state college tuition and fees for the 2022-2023 school year were $10,249. The median home listing price was $728,629, and the homeownership rate was 56.6%.
1. Hawaii
To be middle class in Hawaii, a two-person family must earn $53,522 to $159,766; a three-person family must earn $64,447 to $192,378; and a four-person family must earn $72,694 to $216,996. The state has an 85% high school graduation rate, and in-state college tuition and fees for the 2022-2023 school year were $10,999. The median home listing price was $956,094, and the homeownership rate was 50%.
The full report can be viewed here.
