10 States the Middle Class Should Be Fleeing

It’s no secret that people are packing up their belongings and moving across the country in the interest of affordability. This is especially true for the middle class, who can afford to move and increasingly want to escape from high-cost areas.

To find states where the middle class is struggling, GOBankingRates analyzed each state by reviewing cost of living, mortgage costs and income levels. 

The study pulled data from places like the Missouri Economic Research and Information Center, Bureau of Labor Statistics, Zillow and the U.S. Census to figure out average expenses and mortgage costs for each state. It compared these costs to the national average and calculated how much a middle-class household could save after covering expenses. Each state was ranked based on income, mortgage costs and leftover savings to show which states the middle class should consider fleeing. 

• Minimum middle-class income: $81,935
• Mortgage monthly average cost: $5,617
• Total cost of living monthly: $8,387
• Total cost of living annually: $100,640
• Cost-of-living index: 186.2

Hawaii’s cost of living is a whopping 86% higher than the national average. Mortgage monthly average costs are over double the national average and so is the total cost of living monthly. Additionally, Hawaiians are $18,705 in the hole when it comes to leftover savings each year. 

• Minimum middle-class income: $87,145
• Mortgage monthly average cost: $4,553
• Total cost of living monthly: $7,032
• Total cost of living annually: $84,385
• Cost-of-living index: 145

The cost of living in the Golden State is 45% higher than the national average due to higher mortgage monthly average costs and total cost-of-living expenses that are thousands more. And while the minimum middle-class income isn’t less than the total annual cost of living in California, it’s not quite $3,000 higher. That means Californians will only have a mere $2,761 in leftover savings each year.

• Minimum middle-class income: $60,095
• Mortgage monthly average cost: $2,674
• Total cost of living monthly: $4,702
• Total cost of living annually: $56,422
• Cost of living overall index: 94.6

Living in a state where the cost of living is approximately 5% lower than the national average sounds promising, but not when you realize that leftover savings equals just $3,673. For example, monthly mortgage costs and the total monthly cost of living are over $600 a month higher than the national average — and could increase. 

• Minimum middle-class income: $61,066
• Monthly mortgage average cost: $2,312
• Total cost of living monthly: $4,504
• Total cost of living annually: $54,053
• Cost of living overall index: 111.3

In Maine, the monthly mortgage average cost and the total cost of living monthly and annually are hundreds above the national average figures. Average leftover savings is right around $7,000. However, if the cost of living keeps climbing, that number could dwindle. 

• Minimum middle-class income: $73,735
• Mortgage monthly average cost: $2,145
• Total cost of living monthly: $4,836
• Total cost of living annually: $58,036
• Cost-of-living index: 125.1

While the mortgage monthly average cost in Alaska isn’t far off from the national average of $2,064, the total cost of living monthly is almost $800 higher than the national average of $4,070. This could spell trouble for middle-class Americans living in Alaska.

• Minimum middle-class income: $68,887
• Monthly mortgage average cost: $2,896
• Total cost of living monthly: $5,087
• Total cost of living annually: $61,046
• Cost-of-living index: 114.1

The total cost of living annually in Oregon is $12,210 higher than the national average. Part of this added expense is the monthly mortgage average cost, which is over $800 higher than the U.S. average. 

• Minimum middle-class income: $61,853
• Monthly mortgage average cost: $2,611
• Total cost of living monthly: $4,599
• Total cost of living annually: $55,184
• Cost-of-living index: 101.1

The major concerns in Idaho for the middle class are the monthly mortgage average cost, which is almost $550 higher than the national average, and the total cost of living monthly which also exceeds the national average by over $500. Unfortunately, those expenses will likely continue to increase, leaving the middle class searching for a more affordable place to make a home. 

• Minimum middle-class income: $65,303
• Monthly mortgage average cost: $2,619
• Total cost of living monthly: $4,722
• Total cost of living annually: $56,660
• Cost-of-living index: 102.7

Like Idaho, the cost of living in Nevada isn’t that much higher than the national average — only about 3% higher. However, the monthly mortgage average cost is over $550 higher than the U.S. average and could increase, eventually pricing middle-class residents out of their home state. 

• Minimum middle-class income: $71,007
• Monthly mortgage average cost: $2,746
• Total cost of living monthly: $4,950
• Total cost of living annually: $59,403
• Cost-of-living index: 113.4

The cost of living overall for Rhode Island is 13.4% higher than the national average. Monthly mortgage average costs are about $700 higher and monthly cost of living is about $900 higher. If the numbers creep even higher, some middle-class residents might need to pack up. 

• Minimum middle-class income: $81,920
• Monthly mortgage average cost: $3,482
• Total cost of living monthly: $5,747
• Total cost of living annually: $68,959
• Cost-of-living index: 115.1

The cost of living in Washington is 15% higher than the national average. But the major concern for the middle class in the Evergreen State is that the average monthly mortgage cost is over $1,400 more than the national average. 

Methodology: For this study, GOBankingRates analyzed each state to find the states where the middle class should be fleeing. First GOBankingRates found the cost-of-living indexes as sourced from the Missouri Economic Resource Information Center and by using the national average expenditure costs for all residents as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey, the average expenditure cost for each state can be calculated. The total population, total households, household median income, household mean income are all sourced from the US Census American Community Survey. The average single-family home value was sourced from Zillow Home Value Index and by assuming a 10% down payment and using the national average 30-year fixed mortgage rate, as sourced from the Federal Reserve Economic Data, the average mortgage cost can be calculated for each state. Using the average mortgage and expenditure costs the total cost of living can be calculated. The cost of living was also compared to the national average by comparing the overall cost-of-living index for each state. The middle class is considered to be two-thirds to double the average household income, and the minimum household income to be in the middle class was calculated for each state. Assuming a household earns the minimum to be considered middle class, the average savings after the average cost of living can be calculated. The household median income was scored and weighted at 1.00, the expenditure cost was scored and weighted at 1.00, the mortgage cost was scored and weighted at 1.00 and the leftover savings for households that earn the minimum income to be considered middle class was scored and weighted at 1.00. All the scores were sorted and summed to show the places where the middle class should be fleeing. All data was collected on and is up to date as of Aug. 27, 2024.