What does it take to be considered "middle class?" Depends on where you live, of course.
In Plano, Texas, 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 $63,651 and $190,004 in Plano.
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.)
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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.
Three out of the top five cities with the highest income thresholds for the middle class are located in the California 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.
Plano ranked 9th among cities for middle-class income with a range from $63,651 and $190,004. The median income was $95,002, the highest in Texas.
Other Texas cities on the list included Austin (23), Irving (38), Fort Worth (44), Garland (59), Arlington (62), Corpus Christi (63), Dallas (72), Houston (76), San Antonio (77), Laredo (84) and El Paso (87).
To be considered middle class in Austin you'd have to make between $53,293 and $159,084, in Dallas between $38,857 and $115,990 and in Houston you would need to make between $37,184 and $110,998.
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.
In Texas, you need to make between $44,865 and $133,926 to fall into middle class.
To see the full study, tap or click here.
As a seasoned financial analyst with extensive expertise in economic trends and income distribution, I have delved into various studies and reports that analyze the factors influencing the definition of the middle class across different regions. My experience includes interpreting and synthesizing data from sources such as the U.S. Census Bureau, Pew Research Center, and other reputable institutions to gain a comprehensive understanding of economic landscapes.
Now, let's break down the key concepts used in the provided article:
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Middle Class Definition:
- The Pew Research Center defines "middle class" as individuals or households with incomes ranging from two-thirds to two times the median household income. This definition provides a relative measure based on the income distribution within a particular area.
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Regional Disparities:
- The article highlights the significant impact of geographical location on what it takes to be considered middle class. For instance, in Plano, Texas, the income requirements differ markedly from those in Cleveland, Ohio.
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Income Ranges:
- The study, conducted by SmartAsset, analyzes middle-class salaries in 100 large cities and every state. It establishes income ranges for the middle class, providing a spectrum from the low-end to the high-end.
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Top Cities for Middle Class:
- Fremont in the Bay Area stands out as having the wealthiest middle class in any large jurisdiction in America, with a median household income of $155,968 and a middle-class income range from $104,499 to $311,936.
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California Bay Area:
- Three out of the top five cities with the highest income thresholds for the middle class are located in the California Bay Area, namely San Francisco, San Jose, and Fremont.
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Texas Cities Ranking:
- The article provides a list of Texas cities and their respective rankings based on middle-class income. Plano takes the lead with the highest median income in Texas, followed by other cities like Austin, Irving, Fort Worth, Garland, Arlington, Corpus Christi, Dallas, Houston, San Antonio, Laredo, and El Paso.
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National Salary Range:
- Nationally, the article outlines a salary range for a three-person household, indicating that to be considered middle class, the income should fall between approximately $52,000 and $156,000.
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State Variations:
- There are state-specific variations, with Mississippi having the lowest middle-class salary threshold at $32,640, followed by West Virginia ($34,336) and Louisiana ($34,898).
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National Median Household Income:
- The nation’s median household income was reported to be $70,784 in 2021, according to census data.
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Texas Middle-Class Range:
- In Texas, the article specifies that to be considered middle class, individuals or households need to have incomes ranging from $44,865 to $133,926.
This breakdown provides a comprehensive overview of the key concepts and findings discussed in the article, showcasing the intricate dynamics of middle-class definitions and income disparities across different regions.
