Recent analyses reveal a troubling trend: the middle class is shrinking in several major U.S. cities. A report by MoneyGeek highlights that seven of the ten largest cities in the United States are experiencing a decline in middle-class households. This trend is corroborated by data from Pew, which defines the middle class as households earning between two-thirds to double the national median income. For instance, Henderson, Nevada, saw a drop in middle-class households from 45.2% in 2017 to 41.1% in 2022, while Virginia Beach experienced a decrease from 46.8% to 43% during the same period. San Diego recorded the largest decline among the ten largest cities, raising concerns about the economic stability of the middle class in these urban areas [2a36259b].
In Kentucky, the minimum annual income required to qualify as middle class is projected to be $66,597 for a family of four in 2024. The state has seen a widening income gap, with a significant percentage of households earning under $50,000. Despite challenges such as inflation, Kentucky's labor market remains strong, with more job openings than unemployed workers. Jason Bailey, Executive Director of the Kentucky Center for Economic Policy, emphasizes the need for affordable childcare and education to support families [e7aa5259].
In Texas, the middle-class income threshold is set at $66,597 for a family of four in 2024. Economic factors such as inflation and housing costs are significantly impacting middle-class families. The state faces unique challenges and advantages compared to others, and financial planning, education, and community engagement are crucial for maintaining middle-class status [6fce72fb].
Virginia's middle-class income threshold is notably higher, with families needing to earn $76,463 annually to qualify. The state's middle class is shrinking, reflecting broader national trends, and inflation has exacerbated these challenges since 2020. Strategies to strengthen Virginia's middle class include improving access to affordable housing and promoting job growth [a730a469].
In Iowa, the minimum annual income needed to qualify as middle class is $47,047, with a range extending up to $141,142. The state benefits from a relatively affordable cost of living, but rising housing costs and healthcare expenses pose challenges for middle-class families [0978c2b5].
Nevada's middle-class income range is approximately $48,000 to $144,000, influenced by its thriving tourism industry. However, rising healthcare costs and housing affordability remain pressing issues for families in the state [91de10b4].
Overall, the decline of the middle class in major U.S. cities, coupled with the varying thresholds across states like Kentucky, Texas, Virginia, Iowa, and Nevada, paints a complex picture of economic stability and challenges facing American families today.