- A Business Insider analysis revealed how much household income it takes to become middle class in major US cities.
- In some parts of the Bay Area, you need to earn more than $100,000 to be considered middle class.
- The middle-class cutoff varies widely by region, being highest in the West and lowest in the South.
While many Americans consider themselves middle class, the reality is that the bar is much higher: in some states, more than 40% of residents qualify as middle class.
This chart shows exactly how much money it takes to be considered upper, middle, or lower class in each major US city.
A Business Insider analysis of US Census Bureau data for nearly 400 metropolitan areas found that in parts of the Bay Area, a household needs a six-figure income to be considered middle class, while in some Southern cities, a six-figure income is considered upper class.
Inspired by the GoBankingRates analysis, BI looked at every metropolitan area tracked by the U.S. Census Bureau in 2022. BI: Pew Research CenterIt defines it as earning between two-thirds and two times the median income in each metropolitan area.
The following table shows the results for all 392 metro areas, ranked from best to worst: You can use the search bar to find where you're from.
In the San Jose-Sunnyvale-Santa Clara metropolitan area in California, middle class means a household income between $99,267 and $297,800. Meanwhile, in Pine Bluff, Arkansas, a middle class household's income is between $29,509 and $88,526.
According to the Census Bureau, the real median household income nationwide in 2022 was $74,580, which would be considered lower than middle class in the San Francisco-Oakland-Berkeley and Washington, DC-Arlington-Alexandria metropolitan areas.
Many of the metro areas with the highest cutoffs are in the West, with seven of the top 20 in California, two each in Colorado and Washington, and the first in Utah. Nearly all of the bottom 20 are in the Southern states, including Arkansas, Texas, and Georgia.
The New York-Newark-Jersey City metropolitan area, with a cutoff of $61,041 to $183,124, was outside the top 20. The Chicago-Naperville-Elgin area, with a cutoff of $55,276 to $165,828, was outside the top 50.
These calculations suggest that while many Americans may be in the middle class, many still struggle to afford basic necessities. Some ALICE members with limited assets and restricted incomes who are employed told BI they worry they may never retire because most of their income goes to expenses like food, rent, and transportation. For many older Americans, Social Security doesn't cover everything, forcing them to work part-time or full-time jobs even after retirement.
This stress often doesn't go away even as Americans earn more. Henry Or, higher-income people who aren't yet wealthy — often making six figures — told BI they feel they don't have enough savings in case of an emergency or job loss, which is why they're putting off having children or buying a home.
Previous BI analyses at the state level found that states such as New York and California had the lowest percentage of middle-class residents, below 45 percent, and more residents in the upper or lower classes. California's statewide cutoff was $61,034 to $183,102, and New York's was $53,038 to $159,114.
Do you consider yourself middle class? Have you moved to another state where you feel more financially stable? Tell this reporter why. nsheidlower@businessinsider.com.
