5 States Offering Luxury Living on a Middle-Class Budget
Written by
Sarah Li Cain
Edited by
Zuri Anderson
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Middle-class incomes are feeling the pinch, even on the higher end of household income. For reference, middle-class income in the U.S. typically sits around $56,600 to $169,800, according to Pew Research Center.
Sure, you may have more purchasing power the more you make, but it may not exactly be “luxury” living. Even more so depending on where you live.
In states where housing is lower and everyday expenses sit below national averages, your income can stretch much further. It could even help you feel like you’re living in luxury if you can live in a larger home and areas with better amenities.
GOBankingRates found five such areas. These states were chosen based on a combination of criteria which includes low cost of living indexes, which allows budgets to stretch further. Plus, these were states with median home values that are typically much lower than the national numbers relative to income.
Having a meaningful gap between your income and cost of living will help you to get some breathing room, and the option to spend on more discretionary items like entertainment costs.
Iowa
Iowa is known to be an affordable area, especially for middle-class families with modest home prices and overall expenses. The annual cost of living costs around $47,891. With a middle class income averaging around $73,147, you’re looking at a surplus of $25,256 to direct elsewhere.
Kansas
Data from the Missouri Economic Research and Information Center found that Kansas has some of the lowest cost of living indexes in the U.S. at about 86.5. The state’s housing index sits at 77.5.
What’s more, average home values are around $226,851 in Kansas, and annual cost of living is an average of $47,741. These numbers mean you get more bang for your buck, leaving you with tens of thousands of dollars to spend elsewhere.
Missouri
With a cost of living index hovering around 89, it seems obvious why Missouri consistently ranks among the country’s more affordable states. Families and single folks alike can afford some lifestyle perks they may not otherwise in other states. That’s because the average home value is around $246,770 and the average resident spends around $48,770 in annual living costs.
Pennsylvania
Even though metropolitan areas like Pittsburgh and Philadelphia have some affordable housing, you can look to places just outside these areas to live very well. Average home value hovers around $266,510 in the state.
With the annual cost of living around $52,550, you’ll have at least $23,000 in surplus depending on what your income is.
Texas
When you think of the Lone Star State, you’re probably thinking about expensive cities like Austin and Dallas. However, if you’re willing to live outside of these areas, your income can stretch a lot farther.
Take San Antonio, for example. Folks who live there have an average cost of living around $41,633 and earn a median of $62,917. Or Fort Worth, where annual costs can be around $46,892 and a median household income of $76,602.
Let’s forget homes. Average home values in Texas are around $301,096, below national figures. With a middle-class income, you can live large if you’re willing to stick to the suburbs and smaller cities.
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