News release from the Lattice Newswire:
A new study from Upgraded Points has identified where in the U.S. a middle-class income stretches the furthest.
As economic pressures mount, middle-class families across the U.S. are finding it increasingly difficult to cover essential living expenses while maintaining a comfortable lifestyle. Rising costs for housing, healthcare, childcare, and transportation have placed additional strain on household budgets, leaving many unable to save or spend on discretionary items. While these financial pressures affect families nationwide, the degree to which a middle-class income stretches varies significantly depending on location.
This report examines where in the United States middle-class families can achieve the most financial security. By comparing the income required to cover essential expenses to the median family income in each location, the findings highlight areas where households have the most financial breathing room. To control for variations in family size and composition across locations, all of the statistics used are for 2-adult households with 2 children. The results shed light on how regional differences in cost of living and wages impact the ability of middle-class families to invest in more than just getting by — whether that means saving for retirement, spending on recreation and entertainment, or taking a vacation.
Key Takeaways, With Data for Asheville, NC
- Some high-cost locations defy expectations: Some of the most expensive areas in the U.S. also give families the most financial breathing room, thanks to high wages outpacing elevated living costs. For example, San Jose, DC, and Seattle all leave families with over $60K after basic expenses; at the state level, Maryland leads with nearly $56K.
- Low cost of living isn’t the only factor: North Dakota, which requires a low median income for necessities ($84K), leaves families with $49,274 after essentials—the 3rd most in the nation. However, other lower-cost states like West Virginia, Wyoming, and New Mexico rank poorly due to incomes that lag behind even modest living expenses.
- Middle-class affordability in the Asheville metro: Middle-class families need $110,075 to cover necessities in the Asheville metro, such as housing, food, childcare, transportation, healthcare, and more. With a median income of $118,000, they’re left with $7,925 after essential expenses—quite a bit below the national figure ($21,939).
Top Cities for Middle-Class Earners
While affordability might seem synonymous with lower living costs, the cities where middle-class families enjoy the most financial breathing room often defy expectations. Some of the most expensive areas in the U.S., such as San Jose; Washington, D.C.; and Seattle, top the list of cities where families have the most available income after covering necessities. The key to this counterintuitive trend lies in the high median family incomes in these regions, which outpace their elevated living costs. These cities, which are often hubs of technology, government, and research, enable middle-class households to maintain a comfortable lifestyle despite the higher price of essentials.
In San Jose, for example, the median family income for 2-adult households with 2 children is an impressive $230,000 — far exceeding the national median of $130,000. Although the cost of necessities is higher, with housing alone accounting for $34,993 annually, families still retain $65,798 after covering essential expenses. Similarly, Washington, D.C., and Seattle, both known for thriving economies and high-paying industries, provide middle-class families with $64,686 and $61,344, respectively, in available income after necessities.
Many of the top-performing cities on this list share common characteristics as centers for innovation, education, and professional opportunities. Places like Austin and Boston, which rank fifth and sixth, respectively, exemplify how strong local economies with high-paying jobs can offset higher living costs. Despite Boston’s significant housing costs — averaging $28,819 annually — its high median income of $200,000 enables families to retain over $54,000 after covering necessities.
At the other end of the spectrum, cities in California, Nevada, and Florida highlight how stagnant incomes or disproportionately high costs can strain middle-class budgets. Los Angeles, for instance, is infamous for its high housing costs, averaging $27,581 annually. With a median family income of $136,800, families in L.A. have just $2,626 left after covering their essential expenses. Meanwhile, Fresno, despite having a cost of living close to the national average, ranks near the bottom due to a lower median income of $109,600, leaving families with only $8,089 in available income. Similarly, Las Vegas and Miami suffer from below-average incomes combined with rising housing and childcare costs, further limiting families’ financial flexibility.
These findings highlight the complex interplay between wages and living costs. While expensive cities often provide middle-class earners with higher disposable income, families in more moderately priced locations can face tighter financial constraints if wages fail to keep pace with cost of living.
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