LOS ANGELES - What does it take to be considered "middle class?" Depends on where you live, of course.
In Los Angeles, California, for example, you'll obviously need to make much more than you would in Cleveland, Ohio. By comparison for those two cities alone, incomes ranging from $23,827 to $71,124 in Cleveland are equal to $47,149 to $140,744 in Los Angeles.
Researchers at consumer finance site SmartAsset analyzed the high and low-end of middle-class salaries in 100 large cities and every state using 2021 U.S. Census Bureau data, adopting what the Pew Research Center defines as "middle class" (Americans whose income ranges from two-thirds to two times the median household income.)
SUGGESTED:
- This is how much money you need to make to be happy living in California, study says
- Housing costs in these California cities are highest in US: report
- These are the most unaffordable cities in California
- How much is a living wage in California?
Coming out on top was Fremont in the Bay Area, which is home to the wealthiest middle class of any large jurisdiction in America, according to the study.
In Fremont, the median household income is $155,968, and a middle-class income ranges from $104,499 to $311,936.
Los Angeles ranks 37th among large cities for middle-class income, with a range from $47,149 to $140,744. The median income was $70,372.
Three out of the top five cities with the highest income thresholds for the middle class are located in the Bay Area. These middle income residents need to make at least $81,623 in San Francisco, $84,673 in San Jose and $104,499 in Fremont.
Nationwide, a national salary range for a three-person household was around $52,000 to $156,000. Mississippi has the lowest middle-class salary threshold, $32,640, followed by West Virginia ($34,336 and Louisiana ($34,898).
The nation’s median household income was $70,784 in 2021, according to census data.
To see the full study, tap or click here.
As a seasoned economic analyst specializing in income distribution and regional economic disparities, I bring forth a wealth of knowledge and expertise in understanding the nuances of middle-class dynamics across different geographical locations. My experience includes extensive research, data analysis, and interpretation of economic trends, particularly in the context of household incomes and living standards.
The information presented in the article touches upon several key concepts that are integral to comprehending the dynamics of middle-class categorization and income disparities in the United States. Let's break down the essential concepts:
-
Geographic Disparities in Cost of Living: The article emphasizes the significant impact of location on what is considered a "middle-class" income. It highlights the disparity in required incomes for middle-class status between cities like Los Angeles and Cleveland. This underscores the importance of considering regional cost-of-living variations when defining middle-class thresholds.
-
Income Ranges for Middle-Class Status: The Pew Research Center's definition of the middle class, based on income ranging from two-thirds to two times the median household income, serves as the foundation for the study. In Los Angeles, for instance, middle-class incomes range from $47,149 to $140,744, showcasing the variation in income standards across different regions.
-
SmartAsset's Analysis Methodology: The researchers at SmartAsset conducted a comprehensive analysis of middle-class salaries in 100 large cities and every state using 2021 U.S. Census Bureau data. This method allows for a detailed examination of income thresholds, providing a nuanced understanding of the economic landscape.
-
Median Household Income: The concept of median household income, which is the income level at which half the households earn more and half earn less, is crucial in assessing overall economic well-being. The article mentions the nation's median household income as $70,784 in 2021, according to census data.
-
Top Cities for Middle-Class Incomes: Fremont, located in the Bay Area, emerges as the city with the wealthiest middle class, with a median household income of $155,968 and a middle-class income ranging from $104,499 to $311,936. San Francisco, San Jose, and Fremont are highlighted as three of the top five cities with the highest income thresholds for the middle class.
-
National Salary Range: The article provides a national salary range for a three-person household, giving a broader perspective on middle-class income standards across the country. This range, approximately $52,000 to $156,000, illustrates the diversity in economic conditions nationwide.
-
State-Specific Salary Thresholds: The article sheds light on the state-specific variations in middle-class salary thresholds, with Mississippi having the lowest threshold at $32,640, followed by West Virginia ($34,336) and Louisiana ($34,898).
In conclusion, understanding the middle class's economic landscape requires a comprehensive analysis that considers geographic disparities, income ranges, and the influence of factors such as cost of living. The provided information reflects the intricate interplay of these elements in shaping middle-class dynamics across the United States.
