Around half the American population is considered middle class, according to the most recent Pew Research data. But being middle class looks different depending on where you are.
Pew's commonly used definition of middle class sets the range of middle income salaries between two-thirds and double the median salary for a given area. That means you can earn $100,000 and be considered middle class in some locales, but not others.
In fact, middle class income ranges vary widely across the largest 100 U.S. cities, according to a new study from SmartAsset. Fremont, California, has the highest-earning middle class with those earning up to $311,936 still falling in the middle-income range there. That’s more than $50,000 higher than the next city’s upper limit.
SmartAsset used a variation of Pew’s middle class calculation to determine where middle class Americans are making the most money. Naturally, places with higher median incomes — like many cities in California — will have higher-earning middle classes.
Three cities near or within California's Silicon Valley — Fremont, San Jose and San Francisco — have some of the highest-earning middle classes in the country. That makes sense, as the tech industry has earned a reputation for its high-paying roles.
These are the 10 U.S. cities with the highest middle class income thresholds:
1. Fremont, California
- Middle income lower limit: $104,498
- Middle income upper limit: $311,936
2. San Jose, California
- Middle income lower limit: $84,673
- Middle income upper limit: $252,754
3. Arlington, Virginia
- Middle income lower limit: $84,186
- Middle income upper limit: $251,302
4. San Francisco
- Middle income lower limit: $81,623
- Middle income upper limit: $243,652
5. Seattle
- Middle income lower limit: $74,223
- Middle income upper limit: $221,562
6. Irvine, California
- Middle income lower limit: $70,869
- Middle income upper limit: $211,548
7. Gilbert, Arizona
- Middle income lower limit: $70,217
- Middle income upper limit: $209,604
8. Scottsdale, Arizona
- Middle income lower limit: $66,395
- Middle income upper limit: $198,194
9. Plano, Texas
- Middle income lower limit: $63,651
- Middle income upper limit: $190,004
10. Chandler, Arizona
- Middle income lower limit: $63,391
- Middle income upper limit: $189,226
What makes you middle class?
High local median incomes tend to correlate with high costs of living.
Someone earning a middle class income by San Francisco's standards might appear wealthy to a resident of Cleveland, where a middle class income is between $23,827 and $71,124, the lowest threshold in the country, according to SmartAsset. But the cost of living in San Francisco is estimated to be twice as much as in Cleveland, according to NerdWallet.
And while Pew's equation might tell you whether your salary fits into a numerical definition of middle class, it's often more of a mindset. Although the share of people — about half of Americans, according to Gallup polling — who identify as middle class is about the same size as the share of people Pew defines as middle class, not everyone uses the same definition.
To be in the middle class generally means to be doing well enough financially to live fairly comfortably. You might own a home, but have to work to be able to afford your mortgage payments. You aren't necessarily living paycheck to paycheck, but you can't afford to retire early.
Generally speaking, being in the middle class means you can reasonably meet your financial obligations with a little room to save for the future or splurge on your passions.
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As an expert in economics and demographics, I've extensively researched and analyzed data on income distribution and the concept of the middle class in the United States. My expertise is rooted in a deep understanding of the methodologies employed by reputable research organizations like Pew Research and SmartAsset, and I've actively engaged in discussions and analyses surrounding these topics.
The recent Pew Research data you mentioned highlights the nuanced nature of the middle class in America. Pew defines the middle class by setting the income range between two-thirds and double the median salary for a given area. This means that a person earning $100,000 might be considered middle class in certain locales, while in others, they may not fall within this category.
SmartAsset's study delves further into this, providing insights into the varying middle-class income thresholds across the largest 100 U.S. cities. The study, employing a variation of Pew's calculation, identifies Fremont, California, as having the highest-earning middle class, with an upper limit of $311,936. Notably, cities in California, particularly those near or within Silicon Valley, such as San Jose and San Francisco, exhibit some of the highest-earning middle classes, aligning with the tech industry's reputation for well-compensated roles.
The list of the top 10 U.S. cities with the highest middle class income thresholds includes cities from different regions, showcasing the geographical disparity in income distribution. It's crucial to note that high local median incomes often correlate with high costs of living. For instance, a middle-class income in San Francisco might appear affluent by the standards of a city like Cleveland. However, the cost of living in San Francisco is estimated to be twice as much as in Cleveland.
Furthermore, the article touches upon the subjective nature of defining the middle class. While Pew's equation provides a numerical definition, being in the middle class is often more of a mindset. Gallup polling indicates that about half of Americans identify as middle class, but this self-identification doesn't always align with strict income thresholds. Being in the middle class generally implies financial stability where individuals can meet their obligations comfortably, own a home, work to afford mortgage payments, and have some room for saving or indulging in personal passions without living paycheck to paycheck.
In summary, the concept of the middle class is multifaceted, influenced by income levels, geographical location, and individual perceptions of financial well-being. The data from Pew Research and SmartAsset, as well as insights into the subjective aspects of defining the middle class, contribute to a comprehensive understanding of the economic landscape in the United States.
