Tuesday, March 26, 2024
Year : 2, Issue : 13
A new study has figured out the minimum annual income required for a family of four to be considered middle class in each state – and the NYC area shouldn’t be surprised that these numbers are sky-high for the Tri-State. The middle class is capturing a lower share of income than in the 1960s, 1970s, and 1980s, according to Oliver Rust, head of product at independent inflation data aggregator Truflation.
Rust said during an interview with Consumer Affairs that in the two decades since the mid-2000s, the portion of the country that is middle class has shrunk from roughly 60%. Instead, there
has been a steep increase at the extreme bottom and top of the economic spectrum.
Inflation has surged in the past few years, peaking at 9% in June 2022. That means some families who were middle class in 2020 may no longer be in that category. The Pew Research Center says the share of adults who live in middle-class households fell from 61% in 1971 to 50% in 2021.
So what is the minimum annual income required in 2023 for a family of four to be middle class in NY, NJ and CT? Consumer Affairs found that number by using a calculator provided by the Pew Research Center and an inflation calculator provided by the U.S. Bureau of Labor Statistics.
New York$81,396.
New Jersey$80,163.
Connecticut$80,163.
Which state tops the list?
Hawaii tops the list, with an annual income of $82,630 required to be considered middle class.
D.C. is tied with New York in second place, at $81,396. New Jersey and New York are tied for third, and Massachusetts ranks 4th at $76,463.
The bottom five include Alabama, Arkansas, Arizona, West Virginia and Mississippi, with only $60,431 needed to be considered middle class in the Magnolia State.
The nation’s median household income was $70,784 in 2021, according to census data.
Another study from SmartAsset revealed that it takes the most money to live comfortably as a single person in New York City, requiring $66.62 in hourly wages, or an annual salary of $138,570. New York’s also one of six U.S. cities where a family must make over $300k to raise two kids comfortably: $318,406, to be exact.
FOX 5 DC contributed to this report
