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Midwest Cities Offer Middle-Class Families Financial Relief
Recently, GOBankingRates analyzed data from the 50 largest cities in the United States. They compared the median middle-class income levels to the annual cost of living for homeowners and renters in these cities, revealing how much disposable income remains.
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Initially, the list covered 50 cities, but it has become clear that middle-class incomes struggle to keep pace with living expenses, particularly in the costly Northeast and Western regions of the U.S. To find a more realistic view, GOBankingRates created a focused list of the nine largest cities in the Midwest, where living costs are significantly more manageable, even in the largest urban areas.
Using the median middle-class income of $75,149, we explore how far this salary stretches in the Midwest cities below.
Detroit
- Annual cost of living for homeowner: $32,726
- Surplus of income for median middle-class homeowner: $42,423
- Annual cost of living for renter: $43,657
- Surplus of income for median middle-class renter: $31,492
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Wichita, Kansas
- Annual cost of living for homeowner: $37,563
- Surplus of income for median middle-class homeowner: $37,586
- Annual cost of living for renter: $36,671
- Surplus of income for median middle-class renter: $38,478
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Milwaukee
- Annual cost of living for homeowner:$38,630
- Surplus of income for median middle-class homeowner: $36,519
- Annual cost of living for renter:$39,692
- Surplus of income for median middle-class renter: $35,457
Indianapolis
- Annual cost of living for homeowner: $39,367
- Surplus of income for median middle-class homeowner: $35,782
- Annual cost of living for renter: $40,439
- Surplus of income for median middle-class renter: $34,710
Kansas City, Missouri
- Annual cost of living for homeowner: $40,470
- Surplus of income for median middle-class homeowner: $34,679
- Annual cost of living for renter: $40,144
- Surplus of income for median middle-class renter: $35,005
Columbus, Ohio
- Annual cost of living for homeowner: $41,650
- Surplus of income for median middle-class homeowner: $33,499
- Annual cost of living for renter: $41,555
- Surplus of income for median middle-class renter: $33,594
Also See: How Much Money Is Needed To Be Considered Middle Class in Every State?
Omaha, Nebraska
- Annual cost of living for homeowner: $43,981
- Surplus of income for median middle-class homeowner: $31,168
- Annual cost of living for renter: $40,790
- Surplus of income for median middle-class renter: $34,359
Minneapolis
- Annual cost of living for homeowner:
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Examining Middle-Class Living Costs in Major U.S. Cities
Comparative Costs for Homeowners and Renters
- Annual cost of living for homeowner: $47,771
- Surplus of income for median middle-class homeowner: $27,378
- Annual cost of living for renter: $43,765
- Surplus of income for median middle-class renter: $31,384
Cost Breakdown in Chicago
- Annual cost of living for homeowner: $47,962
- Surplus of income for median middle-class homeowner: $27,187
- Annual cost of living for renter: $51,768
- Surplus of income for median middle-class renter: $23,381
Methodology: GOBankingRates conducted an analysis of the 50 most populous cities based on the 2023 U.S. Census American Community Survey. Data collected included total population, households, and median income. They also gathered cost of living indices for various expenses such as grocery, healthcare, housing, and transportation from Sperlings BestPlaces. Additionally, the average single-family home values were taken from the Zillow Home Value Index for September 2024. The analysis factored in a 10% down payment and the most recent mortgage rates from the Federal Reserve Economic Data to determine average costs of living in each city. The middle-class income range was determined using definitions from the Pew Research Center. All figures were as of November 5, 2024.
Additional Insights from GOBankingRates
This article originally appeared on GOBankingRates.com: How Far Does a Middle-Class Salary Go in Detroit and Other Big Cities in the Midwest?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
