Massachusetts has recently edged out New Jersey for the most salubrious middle-class salary needs in the nation, according to a new SmartAsset analysis. In fact, last year the state unseated New Jersey as the top ranked state. This change focuses on the monetary difficulties residents face in obtaining and holding onto a middle-class life. A 2024 survey by the National True Cost of Living Coalition found that two-thirds of middle-class Americans are currently struggling financially, shedding light on the broader economic challenges.
The low end of the middle-class income range is $48,272, the high end $144,830. In addition, the median household income is $72,415. According to CNBC’s own story, in order for the average American household to be middle class, you would have to make between $66,565 and $199,716. This higher upper boundary has gone up by almost $11,000 from previous years’ estimates, showing a clear increase in income requirements.
In fact, inflation-adjusted wages have grown since last year. Unfortunately, these gains have been more than offset by the increasing costs which began with the Covid-19 pandemic in 2020. Inflation has been above the Federal Reserve’s 2% target since then, adding even more financial stress for households. The recent SmartAsset analysis, which used 2023 income data from the U.S. Census Bureau, is a perfect illustration of this.
In all but six states it’s now above $100,000 and in every U.S. state, that upper limit on what’s considered middle class exceeds $100,000. This signals a notable new baseline in economic standards as inflation lingers to raise the cost of living and eat away at wage increases. In the face of these pressures, middle-class Americans are still struggling financially even with wages increasing.