Inflation is slashing middle-class incomes. Here’s where it’s worst

State Watch Inflation is slashing middle-class incomes. Here’s where it’s worst Comments: by Alix Martichoux - 07/25/26 9:00 AM ET Comments: Link copied by Alix Martichoux - 07/25/26 9:00 AM ET Comments: Link copied

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(NEXSTAR) – You probably don’t need the data to tell you that money has gotten a little tighter for most people.

Wage growth for many middle-class households isn’t keeping up with inflation, especially with the major spikes in home prices during COVID and energy costs since the start of the Iran War.

A new analysis by personal finance site MoneyLion found only two states have seen healthy growth in middle-class income compared to inflation. Between 2019 and 2024 (the most recent year of data available), middle-class income grew more than 10% in Louisiana and Mississippi.

Most Americans were not so lucky. Fourteen states actually saw middle-class incomes decrease by at least 10% over the same time period, when compared to the rising cost of living:

1. Massachusetts

Median household income 2024: $104,828
Median household income 2019: $81,215
Necessities cost of living annually 2024: $75,571
Necessities cost of living annually 2019: $49,633
5-year % change in income compared to 5-year % change in cost of living: -23.2%

2. New Jersey

Median household income 2024: $104,294
Median household income 2019: $82,545
Necessities cost of living annually 2024: $65,009
Necessities cost of living annually 2019: $43,583
5-year % change in income compared to 5-year % change in cost of living: -22.8%

3. New Hampshire

Median household income 2024: $99,782
Median household income 2019: $76,768
Necessities cost of living annually 2024: $61,191
Necessities cost of living annually 2019: $41,061
5-year % change in income compared to 5-year % change in cost of living: -19.1%

4. New York

Median household income 2024: $85,820
Median household income 2019: $68,486
Necessities cost of living annually 2024: $58,287
Necessities cost of living annually 2019: $40,673
5-year % change in income compared to 5-year % change in cost of living: -18%

5. Rhode Island

Median household income 2024: $83,504
Median household income 2019: $67,167
Necessities cost of living annually 2024: $60,322
Necessities cost of living annually 2019: $42,429
5-year % change in income compared to 5-year % change in cost of living: -17.9%

6. Hawaii

Median household income 2024: $100,745
Median household income 2019: $81,275
Necessities cost of living annually 2024: $100,914
Necessities cost of living annually 2019: $71,200
5-year % change in income compared to 5-year % change in cost of living: -17.8%

7. Connecticut

Median household income 2024: $96,049
Median household income 2019: $78,444
Necessities cost of living annually 2024: $58,212
Necessities cost of living annually 2019: $41,558
5-year % change in income compared to 5-year % change in cost of living: -17.6%

8. Virginia

Median household income 2024: $92,090
Median household income 2019: $74,222
Necessities cost of living annually 2024: $52,309
Necessities cost of living annually 2019: $37,053
5-year % change in income compared to 5-year % change in cost of living: -17.1%

9. Wyoming

Median household income 2024: $75,532
Median household income 2019: $64,049
Necessities cost of living annually 2024: $47,448
Necessities cost of living annually 2019: $35,170
5-year % change in income compared to 5-year % change in cost of living: -17%

10. Montana

Median household income 2024: $75,340
Median household income 2019: $54,970
Necessities cost of living annually 2024: $55,211
Necessities cost of living annually 2019: $36,791
5-year % change in income compared to 5-year % change in cost of living: -13%

11. California

Median household income 2024: $100,149
Median household income 2019: $75,235
Necessities cost of living annually 2024: $83,327
Necessities cost of living annually 2019: $57,429
5-year % change in income compared to 5-year % change in cost of living: -12%

12. Maryland

Median household income 2024: $102,905
Median household income 2019: $84,805
Necessities cost of living annually 2024: $55,507
Necessities cost of living annually 2019: $41,648
5-year % change in income compared to 5-year % change in cost of living: -11.9%

13. Utah

Median household income 2024: $96,658
Median household income 2019: $71,621
Necessities cost of living annually 2024: $59,875
Necessities cost of living annually 2019: $40,880
5-year % change in income compared to 5-year % change in cost of living: -11.5%

14. Washington

Median household income 2024: $99,389
Median household income 2019: $73,775
Necessities cost of living annually 2024: $68,413
Necessities cost of living annually 2019: $46,916
5-year % change in income compared to 5-year % change in cost of living: -11.1%

MoneyLion used Census data on household income and sourced cost-of-living data from the Missouri Economic and Research Information Center to complete its analysis.

Unfortunately, it doesn’t seem like average Americans are getting much of a break this year when it comes to cost of living. The average long-term U.S. mortgage rate climbed this week to its highest level in nearly 12 months, pushing up borrowing costs for prospective homebuyers at a time when rising oil prices are already squeezing household budgets.

The benchmark 30-year fixed rate mortgage rate rose to 6.58% from 6.55% last week, mortgage buyer Freddie Mac said Thursday. The rate has ticked higher three weeks in a row.

Higher mortgage rates can add hundreds of dollars a month in costs for borrowers, limiting homebuyers’ purchasing power.

Rates have been mostly rising this year as the conflict in Iran has driven crude oil prices sharply higher, stoking expectations of hotter inflation, just as it had begun to decelerate by more than economists expected. That in turn could push the Federal Reserve to raise interest rates.

The Associated Press contributed to this report.

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