Here's what it takes to be a middle class earner in Houston in 2024
by the numbers
No one wants to hear that they aren't making enough money to be considered "middle class," but those income ceilings are getting more difficult to maintain year after year across the Houston area. And a new report has revealed The Woodlands has the No. 10 highest income ceiling for American middle class earners in 2024.
According to the 2024 edition of SmartAsset's annual "What It Takes to Be Middle Class in America" report, middle class households in The Woodlands would need to make between $91,548 and $274,670 a year to be labeled "middle class." Additionally, the suburb's median middle class household income comes out to $137,335 a year.
The report used a variation of Pew Research's definition of a middle class household, stating the salary range is "two-thirds to double the median U.S. salary." To determine income limits, the report analyzed data from the Census Bureau's 2022 one-year American Community Survey. New to the 2024 report, SmartAsset widened its analysis of income data from 100 to 345 of the largest American cities.
The Woodlands' middle class income thresholds are egregiously higher than the national average, the study found.
"In a large U.S. city, a middle-class income averages between $52,000 and $155,000," the report says. "The median household income across all 345 cities is $77,345, making middle-class income limits fall between $51,558 and $154,590."
Sugar Land was right behind The Woodlands, ranking No. 13 out of all 345 U.S. cities, with households needing to make between $88,502 and $265,532 a year to maintain their "middle class" status.
In a shocking turn of events, Houston plummeted into No. 254 this year after ranking among the top 100 in SmartAsset's 2023 report. At the time, a Houston household needed to make between $37,184 and $110,998 a year to be considered middle class. But the latest findings from the 2024 report show the necessary salary range to maintain a middle class designation in Houston is now between $40,280 and $120,852 a year.
The study's findings are shedding light on further growing financial stress and affordability struggles throughout the U.S., likely heightened by inflation and cost of living increases.
"As a middle-class American, there is some expectation for living a lifestyle of relative comfort," the report said. "But as costs have increased significantly over the last few years, the middle class is now feeling a squeeze in their finances."
Here’s what it takes to be middle class in other Houston-area cities:
- No. 34 – Atascocita: between $71,748 and $215,266 a year
- No. 39 – League City: between $69,904 and $209,734 a year
- No. 45 – Pearland: between $69,990 and $206,992 a year
- No. 211 – Conroe: between $43,814 and $131,456 a year
- No. 273 – Pasadena: between $38,048 and $114,156 a year
Middle class income thresholds within the top 10 U.S. cities
The Woodlands wasn't the only Texas city to earn a spot in the top 10. Frisco, a suburb outside of Dallas, ranked two spots higher to claim No. 8 in the national comparison of U.S. cities with the highest income thresholds to be labeled middle class.
Middle class households in Frisco need to make between $97,266 and $291,828 a year, with the median household income at $145,914, according to the report.
Unsurprisingly, half of the top 10 cities with the highest middle class income ceilings are in California. The report found households in four of the five cities could be bringing in over $300,000 a year in income and still be classified as middle class.
California’s overall high cost-of-living means residents in the No. 1 city of Sunnyvale would need to make between $113,176 and $339,562 a year to be labeled middle class. Sunnyvale overtook Fremont for the top spot in the report in 2024.
The top 10 cities with the highest middle class ceilings are:
- No. 1 – Sunnyvale, California
- No. 2 – Fremont, California
- No. 3 – San Mateo, California
- No. 4 – Santa Clara, California
- No. 5 – Bellevue, Washington
- No. 6 – Highlands Ranch, Colorado
- No. 7 – Carlsbad, California
- No. 8 – Frisco, Texas
- No. 9 – Naperville, Illinois
- No. 10 – The Woodlands, Texas
The full report and its methodology can be found on smartasset.com.
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This article originally ran on CultureMap.