According to Census Data, the Middle Class is Vanishing Fastest in These 15 States

How many times have you heard that the middle class is disappearing? Although it might sound like an exaggeration, there is some truth to it. For instance, according to the Pew Research Center, in 1971, about 61% of American households were middle class, while in 2023, that number shrank down to 51%.

Well, what does this mean? And what is considered 'middle class'? Well, just because the middle class is shrinking doesn't mean people are suddenly earning less money. Interestingly, lower-income households only increased by 3%, while upper-income households went up 8%. It's hard to understand what a middle, upper, or lower-income household earns because it varies by state and even city. For example, it's harder to stretch $50,000 in California than it is in Oklahoma. Still, according to the same research data above, in 2022, the median income for a middle-income household of three people was $106,092. To be considered 'upper-income' would be to double this amount.

In the U.S., as a whole, the middle income depends on household size. For example, in 2022, the range for a middle class income for a household of 3 was $56,600 to $169,800.

Some states are suffering from a shrinking middle class more than others. But which ones? And why? Click through the slideshow to find out. For this slideshow, 24/7 Tempo used sources like Pew Research Center, local news sources, and the American Enterprise Institute.

Imagine making $200,000 and still being considered middle class. Well, this is the case for Californians. One study found that to be middle class in the Sunshine State, you have to make between $63,674 and $191,042. Of course, these numbers change a lot depending on the city. Certain cities are losing their middle class rapidly, like Yorba Linda. From 2017 to 2022, the city lost about 9% of its middle-income households. About 42% of households in Yorba Linda are middle class.

New York has always been an expensive state known for attracting high-income earners. This is especially true of New York City, where the median household income is $79,713. New York is struggling to keep its middle class because of a lack of jobs. During and after the COVID-19 pandemic, the state of New York saw significant job losses for middle-income earners ($69,000-$105,000).

Louisiana is one of the few states left with a relatively low cost of living (depending on where you live). Because of this, you need to make a lot less to be considered middle class. For instance, middle class earners in Louisiana make anywhere from $38,568 to $115,704. So, why is the middle class shrinking in this state? Well, many reasons, but a big one is it's one of the worst states for personal income growth, which is a big problem as everything around us gets more expensive.

Another state where the middle class is shrinking fast is Massachusetts. The income gap in this state is massive. According to Census data, middle-income households earn $71,000 and $213,000 in the state. This is not an easy feat. While 20% of households in Massachusetts make above $200,000, another 27% make less than $50,000.

West Virginia has been losing the middle class for decades because of low wages and a lack of diverse industries. Another point in the wrong direction is the population loss as people move for better opportunities. Only recently has the population in West Virginia increased. For West Virginia, the middle class range is $37,296 to $111,895.

New Mexico is another state that is seeing a shrinking middle class (although all states are to an extent). This is nothing new, as in 2015, reports noted New Mexico as one of the fastest-shrinking states for the middle class. There's been an increase in upper-income earning households and a decrease in lower-income ones. To be considered middle class in New Mexico, you need to earn between $41,508 and $124,536.

Alabama isn't an expensive state. It's considered one of the cheapest ones in the country, and yet they are also seeing a shrinking middle class. Although, like other states, it's trending up as more people are making more money. So, what do you need to make in Alabama to be middle class? Middle-income four-person households earn $65,800 to $197,400.

Also on our list of states where the middle class is quickly shrinking is Kentucky, which has one of the cities where it's shrinking the most. For instance, from 2017 to 2022, Bowling Green, Kentucky, noted a 7.3% decrease in the number of middle-class households. The middle income range in 2022 was $30,541 to $91,624.

Affording a comfortable lifestyle for a middle class family is not as easy as it used to be, as childcare, food, and housing costs outpace wage increases. Georgia, like the rest of the country, is experiencing the same challenges, although some cities are affected more than others. One Georgia city that saw a significant decrease in middle class households is Sandy Springs. Previously, nearly 50% of households were middle class. By 2022, the number went down to a shocking 39.1%.

Maryland is also seeing a shift in the middle class, although some counties have it worse than others. For instance, in Montgomery County, from 2005 to 2022, low-income households saw an increase of 5% while the high-income population saw no change. Maryland is also home to one of the top U.S. cities where the middle class is shrinking rapidly, Rockville. In Rockville, middle-income households fell nearly 10% to 37.2%.

After the COVID-19 pandemic, which saw a huge influx of people, Florida became one of the most expensive states when looking at the cost of living against the median wages. Because of this, the middle class is disappearing. Two Florida cities are especially seeing this change. In five years, Melbourne and North Port lost about 7% of their middle class.

Arkansas is also seeing a rapid change in the middle class, especially in cities like Springdale. It ranked as the top city with the fastest-shrinking middle class. Between 2017 and 2022, Springdale lost 12% of its middle class. Now, only 43.2% of households are considered middle class. The median household income of Springdale is $66,044. What about for the whole state? Well, to be considered middle class in Arkansas, you need to earn between $39,129 and $117,400.

Another state seeing a decrease in the middle class is Indiana. One of its cities even ranked number 2 on a list of the fastest-shrinking middle class cities in the country. In just five years, Carmel saw a 10% decrease in middle class households. Now, only 41.0% of households in Carmel are middle-income earners, which is between $86,888 and $260,664. For the whole state, the middle class is defined by making $46,313 to $138,954.

Texas, like California and Florida, is a massive state with plenty of cities to choose from, which can make it hard to define a specific amount for middle class earners. The state is home to 1,225 Texas municipalities, which include cities, towns, and villages. What you need to earn in Houston won't be the same as what you need to earn in Brownsville to be considered middle income. For Texas as a whole, middle class earners make $50,515 to $151,560.

Last but not least is Hawaii, one of the most expensive states to live in the country. Finding affordable groceries, gas, and housing is not easy, which is what makes living as a middle class household hard. Earning enough to be considered even a lower-end middle class is tough, as the range starts from $63,542 and ends at $190,644. Even middle class people, though, struggle to buy homes. According to Zillow, the median value of a home in Hawaii is $833,984. This is more than eight times as much as low- to middle-class earners make.