Don’t Buy a House in These 6 Cities That Have the Lowest Middle-Class Populations
Written by
Choncé Maddox
Edited by
T. Woods
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Choosing a city to buy your first home is a decision that requires careful consideration, especially for middle-class families. According to PEW Research, a middle class income ranges from two-thirds to double the median U.S. household income which is around $74,580.
If you’re earning an annual salary that’s closer to the median income amount, you may want to avoid buying a house in these six cities where you’d need to make a minimum of $101,000 to be considered a middle-class earner according to a 2024 SmartAsset study.
1. Sunnyvale, California
Sunnyvale is known for its tech industry presence, housing many employees from Silicon Valley. However, this has driven the cost of living sky-high, making it challenging for middle-class families to sustain a comfortable lifestyle. The median home price here surpasses $2.1 million, pushing many potential buyers out of the market.
2. Fremont, California
Much like Sunnyvale, Fremont’s proximity to major tech hubs has significantly raised housing prices. Middle-class families often find it hard to afford homes, with median prices hovering around $1.5 million.
3. San Mateo, California
About 20 miles south of San Francisco, San Mateo offers beautiful scenery and close proximity to many attractions. But to be considered middle class you’d need to earn anywhere from $106,173 to $318,550 per year and the average home price is $1.6 million.
4. Santa, Clara
This tech-driven city is just another area where the cost of living has soared. An average middle class income won’t get you far in Santa Clara even though the highest middle-class earners make around $318,550. You’d need to earn a significant amount to afford the average home price of $1.4 million.
5. Bellevue, Washington
While Bellevue is known for its excellent amenities and strong job market, it’s also one of the most expensive places to live in Washington State. The median home price is around $1.4 million, and the average middle class family earns anywhere from $102,509 to $307,558
6. Highland Ranch, Colorado
Highlands Ranch offers scenic views and a high standard of living. However, middle class families tend to earn at least $101,349 and up to $304,076 since median home prices are around $735,137.
Cities with high living costs and competitive real estate markets can make it difficult to achieve financial stability and comfort. Luckily, there were several other cities found in SmartAsset’s study that are more reasonable for middle class earners such as Austin, Texas (with middle class incomes ranging from $59,604 – $178,830) and Modesto, California (with middle class incomes ranging from $48,845 – $146,550).
Use data like this to explore your options when trying to determine whether the cost of living is manageable and will offer a better quality of life after you buy your home.
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