Best and Worst States for America’s Middle Class
Although the middle class has remained pretty stable in size since 2011, the wealth gap between higher-income households and middle-income Americans has only widened over the years, according to a 2018 Pew Research Center report.
You’re considered middle class if your family earns between $35,000 and $99,999 per year. GOBankingRates calculated that range based on the U.S. median household income of $65,712, per the Census Bureau’s American Community Survey. To make greater financial gains, it’s important for America’s middle class to successfully manage daily living expenses while investing for the future. However, depending on where you live, rising costs can quickly eat up your paycheck — making it that much harder to save money and build wealth.
To find the best and worst states for the middle class, GOBankingRates analyzed a variety of factors spanning the top concerns for middle-income Americans:
Income: The study determined the average change in the proportion of households earning the middle income, which indicates whether the middle class is growing or shrinking in each state. In 20 states, the middle class is expanding.
Education: This includes the high school graduation rate, in-state college tuition and the five-year change in tuition costs in every state. Surprisingly, a handful of states saw tuition costs decrease over time.
Housing: GOBankingRates compiled the median home list price, five-year change in home values, mortgage costs, homeownership rate and property tax rate for each state. There are still 15 states where you can buy an average home for less than $200,000.
If your family earns the middle income, it’s much easier to thrive if you live in a state that allows you to keep a bigger chunk of each paycheck. Unfortunately, many families live in states where the middle income falls short, putting goals like homeownership and student loan debt reduction out of reach — a reality for many middle-class Americans. Keep reading to learn more about the best and worst states for the middle class, ranked form worst to first.
Last updated: Oct. 19, 2020
50. Hawaii
Five-year change in middle-income households: -14.18%
High school graduation rate: 85%
In-state tuition and fees for 2019-20 school year: $10,978
Five-year change in tuition: 5.14%
Five-year change in median home value: 17.93%
Median home list price: $733,084
Cost of 20% mortgage down payment: $146,617
Property tax rate: 0.30%
Monthly mortgage payment: $2,618
Homeownership rate: 60%
49. California
Five-year change in middle-income households: -7.16%
High school graduation rate: 83%
In-state tuition and fees for 2019-20 school year: $9,966
Five-year change in tuition: 0.91%
Five-year change in median home value: 31.93%
Median home list price: $596,946
Cost of 20% mortgage down payment: $119,389
Property tax rate: 0.74%
Monthly mortgage payment: $2,351
Homeownership rate: 56.4%
48. Massachusetts
Five-year change in middle-income households: -8.76%
High school graduation rate: 88%
In-state tuition and fees for 2019-20 school year: $13,641
Five-year change in tuition: 15.48%
Five-year change in median home value: 25.59%
Median home list price: $457,367
Cost of 20% mortgage down payment: $91,473
Property tax rate: 1.15%
Monthly mortgage payment: $1,957
Homeownership rate: 63.5%
47. Colorado
Five-year change in middle-income households: -7.65%
High school graduation rate: 81%
In-state tuition and fees for 2019-20 school year: $11,380
Five-year change in tuition: 13.84%
Five-year change in median home value: 39.47%
Median home list price: $428,573
Cost of 20% mortgage down payment: $85,715
Property tax rate: 0.56%
Monthly mortgage payment: $1,623
Homeownership rate: 66%
46. Alaska
Five-year change in middle-income households: -3.71%
High school graduation rate: 79%
In-state tuition and fees for 2019-20 school year: $8,233
Five-year change in tuition: 24.54%
Five-year change in median home value: 2.10%
Median home list price: $310,346
Cost of 20% mortgage down payment: $62,069
Property tax rate: 1.02%
Monthly mortgage payment: $1,295
Homeownership rate: 67%
45. Oregon
Five-year change in middle-income households: -2.83%
High school graduation rate: 79%
In-state tuition and fees for 2019-20 school year: $11,220
Five-year change in tuition: 16.61%
Five-year change in median home value: 39.91%
Median home list price: $377,165
Cost of 20% mortgage down payment: $75,433
Property tax rate: 0.98%
Monthly mortgage payment: $1,561
Homeownership rate: 65.7%
44. New Jersey
Five-year change in middle-income households: -7.39%
High school graduation rate: 91%
In-state tuition and fees for 2019-20 school year: $14,536
Five-year change in tuition: 3.79%
Five-year change in median home value: 15.53%
Median home list price: $362,917
Cost of 20% mortgage down payment: $72,583
Property tax rate: 2.21%
Monthly mortgage payment: $1,874
Homeownership rate: 64.3%
43. Connecticut
Five-year change in middle-income households: -6.76%
High school graduation rate: 88%
In-state tuition and fees for 2019-20 school year: $13,664
Five-year change in tuition: 19.19%
Five-year change in median home value: 10.56%
Median home list price: $285,380
Cost of 20% mortgage down payment: $57,076
Property tax rate: 1.70%
Monthly mortgage payment: $1,352
Homeownership rate: 66.7%
42. New York
Five-year change in middle-income households: -6.77%
High school graduation rate: 82%
In-state tuition and fees for 2019-20 school year: $8,434
Five-year change in tuition: 7.37%
Five-year change in median home value: 22.04%
Median home list price: $281,025
Cost of 20% mortgage down payment: $56,205
Property tax rate: 1.40%
Monthly mortgage payment: $1,261
Homeownership rate: 54.4%
41. Vermont
Five-year change in middle-income households: -4.49%
High school graduation rate: 85%
In-state tuition and fees for 2019-20 school year: $17,474
Five-year change in tuition: 12.09%
Five-year change in median home value: 16.34%
Median home list price: $270,736
Cost of 20% mortgage down payment: $54,147
Property tax rate: 1.80%
Monthly mortgage payment: $1,305
Homeownership rate: 76.8%
40. Rhode Island
Five-year change in middle-income households: -0.79%
High school graduation rate: 84%
In-state tuition and fees for 2019-20 school year: $13,060
Five-year change in tuition: 10.67%
Five-year change in median home value: 29.71%
Median home list price: $324,159
Cost of 20% mortgage down payment: $64,832
Property tax rate: 1.53%
Monthly mortgage payment: $1,490
Homeownership rate: 64.3%
39. Maryland
Five-year change in middle-income households: -10.27%
High school graduation rate: 87%
In-state tuition and fees for 2019-20 school year: $10,115
Five-year change in tuition: 8.18%
Five-year change in median home value: 16.19%
Median home list price: $333,305
Cost of 20% mortgage down payment: $66,661
Property tax rate: 1.04%
Monthly mortgage payment: $1,396
Homeownership rate: 74.7%
38. New Hampshire
Five-year change in middle-income households: -5.26%
High school graduation rate: 89%
In-state tuition and fees for 2019-20 school year: $16,916
Five-year change in tuition: 6.63%
Five-year change in median home value: 29.83%
Median home list price: $321,889
Cost of 20% mortgage down payment: $664,378
Property tax rate: 203%
Monthly mortgage payment: $1,614
Homeownership rate: 74.7%
37. Virginia
Five-year change in middle-income households: -5.46%
High school graduation rate: 88%
In-state tuition and fees for 2019-20 school year: $13,627
Five-year change in tuition: 13.15%
Five-year change in median home value: 18.98%
Median home list price: $298,481
Cost of 20% mortgage down payment: $59,696
Property tax rate: 0.86%
Monthly mortgage payment: $1,205
Homeownership rate: 72.9%
36. North Dakota
Five-year change in middle-income households: -5.91%
High school graduation rate: 88%
In-state tuition and fees for 2019-20 school year: $9,289
Five-year change in tuition: 14.8%
Five-year change in median home value: 5.7%
Median home list price: $241,279
Cost of 20% mortgage down payment: $48,256
Property tax rate: 0.95%
Monthly mortgage payment: $992
Homeownership rate: 65.5%
35. Nevada
Five-year change in middle-income households: -3.71%
High school graduation rate: 83%
In-state tuition and fees for 2019-20 school year: $7,953
Five-year change in tuition: 14.92%
Five-year change in median home value: 45.47%
Median home list price: $327,941
Cost of 20% mortgage down payment: $65,588
Property tax rate: 0.66%
Monthly mortgage payment: $1,270
Homeownership rate: 62.8%
34. Illinois
Five-year change in middle-income households: -5.82%
High school graduation rate: 87%
In-state tuition and fees for 2019-20 school year: $14,166
Five-year change in tuition: 2.85%
Five-year change in median home value: 17.71%
Median home list price: $210,912
Cost of 20% mortgage down payment: $42,038
Property tax rate: 2.05%
Monthly mortgage payment: $1,057
Homeownership rate: 66.1%
33. Washington
Five-year change in middle-income households: -9.11%
High school graduation rate: 87%
In-state tuition and fees for 2019-20 school year: $10,077
Five-year change in tuition: -12.43%
Five-year change in median home value: 53.44%
Median home list price: $449,642
Cost of 20% mortgage down payment: $89,928
Property tax rate: 0.92%
Monthly mortgage payment: $1,838
Homeownership rate: 66.7%
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32. Louisiana
Five-year change in middle-income households: 0.03%
High school graduation rate: 81%
In-state tuition and fees for 2019-20 school year: $9,614
Five-year change in tuition: 21.89%
Five-year change in median home value: 11.60%
Median home list price: $171,897
Cost of 20% mortgage down payment: $34,379
Property tax rate: 0.52%
Monthly mortgage payment: $645
Homeownership rate: 70.1%
31. New Mexico
Five-year change in middle-income households: -0.38%
High school graduation rate: 74%
In-state tuition and fees for 2019-20 school year: $7,432
Five-year change in tuition: 12.12%
Five-year change in median home value: 24.95%
Median home list price: $217,263
Cost of 20% mortgage down payment: $43,453
Property tax rate: 0.68%
Monthly mortgage payment: $845
Homeownership rate: 73.8%
30. Pennsylvania
Five-year change in middle-income households: -2.44%
High school graduation rate: 86%
In-state tuition and fees for 2019-20 school year: $14,937
Five-year change in tuition: 5.60%
Five-year change in median home value: 23.80%
Median home list price: $205,792
Cost of 20% mortgage down payment: $41,158
Property tax rate: 1.51%
Monthly mortgage payment: $942
Homeownership rate: 70.9%
29. Minnesota
Five-year change in middle-income households: -4.90%
High school graduation rate: 83%
In-state tuition and fees for 2019-20 school year: $11,834
Five-year change in tuition: 4.02%
Five-year change in median home value: 32.34%
Median home list price: $273,596
Cost of 20% mortgage down payment: $54,719
Property tax rate: 1.11%
Monthly mortgage payment: $1,162
Homeownership rate: 76%
28. Arizona
Five-year change in middle-income households: 2.83%
High school graduation rate: 79%
In-state tuition and fees for 2019-20 school year: $11,921
Five-year change in tuition: 6.48%
Five-year change in median home value: 41.88%
Median home list price: $299,853
Cost of 20% mortgage down payment: $59,971
Property tax rate: 0.67%
Monthly mortgage payment: $1,163
Homeownership rate: 71.7%
27. Utah
Five-year change in middle-income households: -8.33%
High school graduation rate: 87%
In-state tuition and fees for 2019-20 school year: $7,162
Five-year change in tuition: 7.95%
Five-year change in median home value: 50.05%
Median home list price: $379,018
Cost of 20% mortgage down payment: $75,804
Property tax rate: 0.62%
Monthly mortgage payment: $1,455
Homeownership rate: 74.4%
26. Delaware
Five-year change in middle-income households: -3.75%
High school graduation rate: 87%
In-state tuition and fees for 2019-20 school year: $13,292
Five-year change in tuition: 7.37%
Five-year change in median home value: 17.63%
Median home list price: $271,520
Cost of 20% mortgage down payment: $54,304
Property tax rate: 0.58%
Monthly mortgage payment: $1,033
Homeownership rate: 81.3%
25. South Dakota
Five-year change in middle-income households: -3.27%
High school graduation rate: 84%
In-state tuition and fees for 2019-20 school year: $8,977
Five-year change in tuition: 8.26%
Five-year change in median home value: 26.57%
Median home list price: $218,975
Cost of 20% mortgage down payment: $43,795
Property tax rate: 1.22%
Monthly mortgage payment: $950
Homeownership rate: 72.3%
24. Kansas
Five-year change in middle-income households: -0.04%
High school graduation rate: 87%
In-state tuition and fees for 2019-20 school year: $9,196
Five-year change in tuition: 3.43%
Five-year change in median home value: 25.04%
Median home list price: $296,503
Cost of 20% mortgage down payment: $59,301
Property tax rate: 1.33%
Monthly mortgage payment: $1,313
Homeownership rate: 72%
23. South Carolina
Five-year change in middle-income households: 2.28%
High school graduation rate: 81%
In-state tuition and fees for 2019-20 school year: $13,057
Five-year change in tuition: 5.88%
Five-year change in median home value: 28.52%
Median home list price: $199,238
Cost of 20% mortgage down payment: $39,848
Property tax rate: 0.56%
Monthly mortgage payment: $755
Homeownership rate: 73.5%
22. Michigan
Five-year change in middle-income households: 0.60%
High school graduation rate: 81%
In-state tuition and fees for 2019-20 school year: $13,771
Five-year change in tuition: 10.25%
Five-year change in median home value: 40.07%
Median home list price: $179,660
Cost of 20% mortgage down payment: $35,932
Property tax rate: 1.44%
Monthly mortgage payment: $812
Homeownership rate: 75.2%
21. Wyoming
Five-year change in middle-income households: 0.20%
High school graduation rate: 82%
In-state tuition and fees for 2019-20 school year: $5,581
Five-year change in tuition: 11.55%
Five-year change in median home value: 16.12%
Median home list price: $255,792
Cost of 20% mortgage down payment: $51,158
Property tax rate: 0.55%
Monthly mortgage payment: $967
Homeownership rate: 77.4%
20. Texas
Five-year change in middle-income households: 0.26%
High school graduation rate: 90%
In-state tuition and fees for 2019-20 school year: $10,468
Five-year change in tuition: 10%
Five-year change in median home value: 30.50%
Median home list price: $216,353
Cost of 20% mortgage down payment: $43,271
Property tax rate: 1.69%
Monthly mortgage payment: $1,023
Homeownership rate: 67.6%
Learn: How Does Your Salary Measure Up To the Average American Income?
19. Oklahoma
Five-year change in middle-income households: 0.86%
High school graduation rate: 82%
In-state tuition and fees for 2019-20 school year: $8,919
Five-year change in tuition: 16.95%
Five-year change in median home value: 20.69%
Median home list price: $136,733
Cost of 20% mortgage down payment: $27,347
Property tax rate: 0.88%
Monthly mortgage payment: $554
Homeownership rate: 74.1%
18. Ohio
Five-year change in middle-income households: 0.67%
High school graduation rate: 82%
In-state tuition and fees for 2019-20 school year: $11,330
Five-year change in tuition: 4.31%
Five-year change in median home value: 33.19%
Median home list price: $161,293
Cost of 20% mortgage down payment: $32,259
Property tax rate: 1.62%
Monthly mortgage payment: $753
Homeownership rate: 70.1%
17. Idaho
Five-year change in middle-income households: 3.35%
High school graduation rate: 81%
In-state tuition and fees for 2019-20 school year: $7,999
Five-year change in tuition: 12.57%
Five-year change in median home value: 65.39%
Median home list price: $313,064
Cost of 20% mortgage down payment: $62,613
Property tax rate: 0.75%
Monthly mortgage payment: $1,235
Homeownership rate: 72%
16. Georgia
Five-year change in middle-income households: -0.72%
High school graduation rate: 82%
In-state tuition and fees for 2019-20 school year: $8,719
Five-year change in tuition: 0.59%
Five-year change in median home value: 37.51%
Median home list price: $212,859
Cost of 20% mortgage down payment: $42,572
Property tax rate: 0.92%
Monthly mortgage payment: $870
Homeownership rate: 68.7%
15. Montana
Five-year change in middle-income households: 4.93%
High school graduation rate: 86%
In-state tuition and fees for 2019-20 school year: $7,204
Five-year change in tuition: 6.33%
Five-year change in median home value: 27.67%
Median home list price: $295,408
Cost of 20% mortgage down payment: $59,082
Property tax rate: 0.76%
Monthly mortgage payment: $1,168
Homeownership rate: 70.6%
14. Iowa
Five-year change in middle-income households: -1.44%
High school graduation rate: 91%
In-state tuition and fees for 2019-20 school year: $9,364
Five-year change in tuition: 10.69%
Five-year change in median home value: 19.67%
Median home list price: $158,328
Cost of 20% mortgage down payment: $31,666
Property tax rate: 1.50%
Monthly mortgage payment: $724
Homeownership rate: 70.7%
13. Mississippi
Five-year change in middle-income households: 2.62%
High school graduation rate: 84%
In-state tuition and fees for 2019-20 school year: $8,596
Five-year change in tuition: 16.38%
Five-year change in median home value: 17.88%
Median home list price: $127,493
Cost of 20% mortgage down payment: $25,499
Property tax rate: 0.65%
Monthly mortgage payment: $492
Homeownership rate: 74%
12. Maine
Five-year change in middle-income households: 1.27%
High school graduation rate: 87%
In-state tuition and fees for 2019-20 school year: $10,478
Five-year change in tuition: 1.95%
Five-year change in median home value: 32.75%
Median home list price: $258,347
Cost of 20% mortgage down payment: $51,669
Property tax rate: 1.27%
Monthly mortgage payment: $1,131
Homeownership rate: 79.3%
11. Nebraska
Five-year change in middle-income households: -0.37%
High school graduation rate: 89%
In-state tuition and fees for 2019-20 school year: $8,745
Five-year change in tuition: 10.71%
Five-year change in median home value: 31.42%
Median home list price: $183,491
Cost of 20% mortgage down payment: $36,698
Property tax rate: 1.65%
Monthly mortgage payment: $862
Homeownership rate: 71.9%
10. Wisconsin
Five-year change in middle-income households: -2.16%
High school graduation rate: 90%
In-state tuition and fees for 2019-20 school year: $9,104
Five-year change in tuition: -3.60%
Five-year change in median home value: 33.99%
Median home list price: $206,454
Cost of 20% mortgage down payment: $41,291
Property tax rate: 1.73%
Monthly mortgage payment: $983
Homeownership rate: 69.8%
9. North Carolina
Five-year change in middle-income households: 1.77%
High school graduation rate: 86%
In-state tuition and fees for 2019-20 school year: $7,281
Five-year change in tuition: 1.32%
Five-year change in median home value: 32.83%
Median home list price: $216,183
Cost of 20% mortgage down payment: $43,237
Property tax rate: 0.85%
Monthly mortgage payment: $871
Homeownership rate: 72.6%
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8. Arkansas
Five-year change in middle-income households: 2.17%
High school graduation rate: 89%
In-state tuition and fees for 2019-20 school year: $9,033
Five-year change in tuition: 10.46%
Five-year change in median home value: 22.42%
Median home list price: $135,710
Cost of 20% mortgage down payment: $27,142
Property tax rate: 0.64%
Monthly mortgage payment: $523
Homeownership rate: 71.3%
7. Indiana
Five-year change in middle-income households: -2.67%
High school graduation rate: 88%
In-state tuition and fees for 2019-20 school year: $9,675
Five-year change in tuition: -0.55%
Five-year change in median home value: 33.74%
Median home list price: $164,847
Cost of 20% mortgage down payment: $32,969
Property tax rate: 0.87%
Monthly mortgage payment: $667
Homeownership rate: 72.6%
6. Florida
Five-year change in middle-income households: 3.59%
High school graduation rate: 86%
In-state tuition and fees for 2019-20 school year: $6,352
Five-year change in tuition: -6.88%
Five-year change in median home value: 37.85%
Median home list price: $270,602
Cost of 20% mortgage down payment: $54,120
Property tax rate: 0.94%
Monthly mortgage payment: $1,111
Homeownership rate: 70.1%
5. Alabama
Five-year change in middle-income households: 1.48%
High school graduation rate: 90%
In-state tuition and fees for 2019-20 school year: $10,918
Five-year change in tuition: 6.94%
Five-year change in median home value: 24.27%
Median home list price: $149,376
Cost of 20% mortgage down payment: $29,875
Property tax rate: 0.40%
Monthly mortgage payment: $546
Homeownership rate: 76.9%
4. Kentucky
Five-year change in middle-income households: 3.67%
High school graduation rate: 90%
In-state tuition and fees for 2019-20 school year: $10,902
Five-year change in tuition: 9.94%
Five-year change in median home value: 28.88%
Median home list price: $153,568
Cost of 20% mortgage down payment: $30,714
Property tax rate: 0.82%
Monthly mortgage payment: $615
Homeownership rate: 76%
3. Tennessee
Five-year change in middle-income households: 4.85%
High school graduation rate: 90%
In-state tuition and fees for 2019-20 school year: $10,255
Five-year change in tuition: 6.69%
Five-year change in median home value: 38.94%
Median home list price: $194,904
Cost of 20% mortgage down payment: $38,981
Property tax rate: 0.73%
Monthly mortgage payment: $766
Homeownership rate: 72.1%
2. Missouri
Five-year change in middle-income households: 0.34%
High school graduation rate: 89%
In-state tuition and fees for 2019-20 school year: $9,022
Five-year change in tuition: -0.20%
Five-year change in median home value: 30.47%
Median home list price: $171,387
Cost of 20% mortgage down payment: $34,277
Property tax rate: 1.01%
Monthly mortgage payment: $713
Homeownership rate: 74.6%
1. West Virginia
Five-year change in middle-income households: 3.97%
High school graduation rate: 90%
In-state tuition and fees for 2019-20 school year: $8,487
Five-year change in tuition: 17.86%
Five-year change in median home value: 14.37%
Median home list price: $107,569
Cost of 20% mortgage down payment: $21,514
Property tax rate: 0.55%
Monthly mortgage payment: $407
Homeownership rate: 78.2%
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Grace Lin contributed to the reporting for this article.
GOBankingRates determined the best and worst states to live on a middle class income by analyzing each state using the following data factors: (1) Average change in middle income in proportion of households over 5-years as sourced from the 2014 and 2019 American Community Surveys, (2) high school graduation rates as sourced from the National Center for Education Statistics, (3) 2019-20 in-state tuition and fees (in 2019 dollars) for a public 4 year college as sourced from College Board, (4) five year percentage change for in-state tuition and fees as sourced from College Board, (5) home value change from 2015-2020 as sourced from Zillow, (6) home value (09/2020) as sourced from Zillow, (7) the cost of a 20% down payment on a typical home, (8) monthly mortgage payment calculated with Zillow’s mortgage calculator and using the August 2020 home value, 20% down payment and applicable property taxes as sourced from Tax Foundation and a 30-year fixed mortgage rate of 2.88% as sourced from the Federal Reserve Bank of St. Louis: 30-Year Fixed Mortgage Average in the United States , and (9) home ownership rate as sourced from the United States Census Bureau. All factors were scored and combined, with the lowest total score being best. All factors were weighted equally. GOBankingRates took middle income to be defined as $35,000 – $99,999, based of the 2019 ACS median household income of $65,712 and available data for income brackets. All data was collected on and up to date as of October 5, 2020.
This article originally appeared on GOBankingRates.com: Best and Worst States for America’s Middle Class
