4 States The Middle Class Should Be Flocking To

In states like New York, California and Hawaii, the cost of housing and daily life is so high that you need an upper-class salary to live a middle-class life.

But on the other end of the spectrum are the states where the barriers to middle-class security are much more forgiving — and you don’t have to sacrifice quality of life just to live somewhere you can afford.

GOBankingRates consulted various experts to identify the states that give middle-class families the best chance to stretch their dollars. Their picks are backed up by minimum middle-class income data from Zippia, average home values from Zillow and cost-of-living data from the Missouri Economic Research and Information Center.

If you’re an average earner considering a move in 2024, these states can give your dollars more purchasing power thanks to affordable housing, low living costs and a more-for-less impact on your income.

• Average home price: $216,115
• Cost of living: 7.8% below the national average
• Minimum middle-class income: $43,949

In 2023, a CNBC analysis ranked Ohio in a two-way tie with Indiana as the No. 3 most affordable state in America. The publication cited, among other things, Ohio’s status as the state with the least expensive homes in the nation.

“Metropolitan areas in Ohio offer some of the most affordable housing options,” said Dan Haeck, a realtor with Coldwell Banker Realty. “In my experience helping clients find homes within their budget, these areas consistently offer quality housing stock and great neighborhoods at reasonable prices. The cost of living is low, but the quality of life is high.”

• Average home price: $320,716
• Cost of living: 3.8% below the national average
• Minimum middle-class income: $51,144

North Carolina’s population grew for 11 out of the 12 years between 2010 and 2022, with nearly 140,000 new residents flocking to the Tarheel State in the year ending in July 2023 alone. That’s because the state has emerged as a thriving alternative to many the congested and expensive East Coast states that many middle-class families are abandoning for greener financial pastures.

“North Carolina has a growing economy and a lower cost of living compared to some other states,” said Haeck. “And research areas such as Raleigh, Durham, and Chapel Hill have a strong job market.”

• Average home price: $309,913
• Cost of living: 9.6% below the national average
• Minimum middle-class income: $50,629

Tennessee added residents every year for all 12 years between 2010 and 2022, with Nashville’s population alone growing by 100 people per day last year. Much of the reason is that dollars go farther there — and the state doesn’t collect revenue from those that you earn.

“Tennessee is an appealing option for middle-class families because it has no state income tax and a low cost of living,” said Alex Coffman, co-owner of Teifke Real Estate, which employs more than 140 agents and staff. “Furthermore, the state has experienced job growth in recent years and provides a wide range of outdoor activities and cultural experiences.”

• Average home price: $296,197
• Cost of living: 7% below the national average
• Minimum middle-class income: $55,605

The Lonestar State added nearly a half-million residents in the last year, a level of population growth unrivaled by any other state in America. Many were middle-class families running from high costs in their former states and toward all the incentives that Texas has to offer.

“Texas stands out for having no state income tax, automatically making it appealing money-wise,” said Dan Belcher, founder and CEO of Short Sale Real Estate. “The cost of living is generally lower than other huge states, and cities like Houston and Austin have thriving job markets without the crazy expenses you’d expect for major cities. This financial advantage comes along with diverse cultural and lifestyle options.”

• Average home price: $232,380
• Cost of living: 9% below the national average
• Minimum middle-class income: $47,044

In 2022, a SmartAsset analysis ranked Michigan as the No. 7 best place for middle-class Americans. It cited a top-10 homeownership rate — 73% of Wolverine State households own their houses — and the people who own those homes spend less than those in all but a handful of other states.

A high percentage of Michigan residents are members of the middle class, and the state grew its number of middle-class jobs by more than 20% between 2017 and 2021.

“Costs for housing, food, childcare, and other family necessities remain relatively reasonable,” said real estate professional Richard Mews, CEO of Sell With Richard. “Average salaries allow for homeownership and other wealth building that is increasingly out of reach on the coasts. The cold winters are a tradeoff, but you save money on cooling bills in the summer.”