The American dream is often associated with stability. Have enough income to live, eat, save and indulge in certain things. However, in practice, achieving that goal, and being considered middle class, does not mean the same thing throughout the United States. The income needed varies by state and can range from less than US$40,000 to close to US$70,000 per year, making location a key factor in achieving that economic stability.
“The main factor is the heterogeneity in economic development between states. In general, greater development is accompanied by a higher cost of living, which raises the income required to belong to the middle class,” explained Remi Stellian, an expert in economic sciences.
According to a SmartAsset study, the highest threshold is in Massachusetts, where about $69,900 is needed annually. They are followed by New Jersey, with US$69,500, and Maryland, with around US$68,600. In these states, the high cost of housing, services and the general price level push up the necessary income. Added to this are higher salaries, which also raise the benchmark compared to other regions.
Other states such as Hawaii, California and New Hampshire also require income above $66,000. In these cases, The high cost of living, especially in urban or high-demand areas, raises the floor of the middle class compared to the rest of the country.
In contrast, the south concentrates the lowest levels. Mississippi ranks last, with a threshold close to $39,400 a year. West Virginia follows, with about $40,500, and Louisiana, with about $40,700. These are territories where the cost of living is lower and average incomes are also lower, which reduces the barrier to entry into the middle class.
Other states such as Arkansas and Kentucky are also located at the bottom of the ranking, with figures close to US$41,000 and US$43,000, respectively. In general, less pressure on expenses explains these differences.
In the west of the country, marked contrasts are evident. States like California and Washington are among the most expensive, with levels above $66,000, driven by large urban centers and dynamic economies. In parallel, Arizona, Idaho and Nevada fall somewhere in between, with incomes close to $54,000.
New Mexico appears further down, with US$45,200, reflecting a lower cost of living compared to other areas of the same geographical block.
Altogether, the gap between the most expensive state and the most affordable exceeds US$30,000 annually, which shows that, in the US, belonging to the middle class depends largely on where you live.
How much is an hour of work worth?
According to figures updated by the United States Department of Labor as of January 1 of this year, The District of Columbia is the state with the highest minimum hourly wage in the country, at $17.95. This applies to most workers. The states of Washington and New York, along with the one mentioned above, are the only ones that exceed US$17. In the first case it is located at US$17.13 and is adjusted annually according to inflation. On the other hand, it is differentiated by region. In New York City and surrounding areas it is US$17, while in the rest of the state it is US$16. Completing the top five are Connecticut and California.
