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Here’s how far a middle-class salary goes in San Jose

Tim Vi Tran,
By Jenna Martin and Gary J. Boulanger – Silicon Valley Business Journal

STORY HIGHLIGHTS

  • West Coast cities have high middle-class salary gaps.
  • San Jose’s median income falls short by nearly $60,000.
  • Middle-class salaries stretch furthest in Detroit and Memphis.

With America’s middle class shrinking in both population share and income growth, a recent study looked to see how far such salaries go in the largest U.S. cities.

As for cities where a middle-class salary doesn’t adequately cover mortgage and other living costs, West Coast markets are found at the top. In San Jose, California, the median household income is $136,010 — but there’s a gap of nearly $60,000 for covering annual expenses. San Jose is followed by San Francisco, San Diego, Los Angeles and Seattle.

On the other end, a middle-class salary goes the furthest, respectively, in Detroit; Memphis, Tennessee; Wichita, Kansas; Tulsa, Oklahoma; and Baltimore.

For the study, the personal finance website analyzed the latest U.S. Census data to calculate each city’s median household income. It included expenses such as groceries, health care, housing, utilities, transportation and other indexes to determine a city’s average annual cost of living. Data was collected on Nov. 5.

GoBankingRates used the Pew Research Center’s definition of middle class, which refers to an income that’s two-thirds to double the median household income.

How Far Middle Class Incomes Go In U.S. Cities

This map displays how far middle-class incomes go after adjusting for cost of living. Negative values show shortfalls; positive values show income left after expenses.

Select a city on the map to view its corresponding data.
Rank City Median Household Income Cost-Adjusted Median Income Average Home Value
1 San Jose, California $136,010 -$59,995 $1,509,775
2 San Francisco, California $136,689 -$53,224 $1,395,689
3 San Diego, California $98,657 -$30,864 $1,137,772
4 Los Angeles, California $76,244 -$23,789 $1,007,659
5 Seattle, Washington $116,068 -$15,834 $930,981
6 Long Beach, California $78,995 -$15,668 $900,918
7 New York, New York $76,607 -$14,839 $782,625
8 Oakland, California $94,389 -$11,216 $832,773
9 Boston, Massachusetts $89,212 -$8,959 $801,196
10 Washington, District of Columbia $101,722 -$3,016 $709,467
11 Miami, Florida $54,858 +$1,655 $652,144
12 Denver, Colorado $85,853 +$7,946 $601,778
13 Portland, Oregon $85,876 +$11,064 $549,592
14 Austin, Texas $86,556 +$11,546 $550,856
15 Sacramento, California $78,954 +$14,468 $486,093
16 Las Vegas, Nevada $66,356 +$17,402 $449,356
17 Atlanta, Georgia $77,655 +$18,196 $441,737
18 Mesa, Arizona $73,766 +$18,874 $449,109
19 Nashville, Tennessee $71,328 +$19,474 $444,178
20 Phoenix, Arizona $72,092 +$19,949 $428,799
21 Colorado Springs, Colorado $79,026 +$19,994 $458,947
22 Raleigh, North Carolina $78,631 +$20,174 $449,230
23 Virginia Beach, Virginia $87,544 +$20,952 $416,429
24 Charlotte, North Carolina $74,070 +$22,694 $406,095
25 Bakersfield, California $73,827 +$22,864 $392,267
26 Fresno, California $63,001 +$22,915 $391,533
27 Dallas, Texas $63,985 +$26,777 $326,105
28 Chicago, Illinois $71,673 +$27,187 $310,088
29 Minneapolis, Minnesota $76,332 +$27,378 $337,363
30 Arlington, Texas $71,736 +$27,488 $317,951
31 Tucson, Arizona $52,049 +$28,231 $340,764
32 Fort Worth, Texas $72,726 +$28,567 $303,062
33 Jacksonville, Florida $64,138 +$28,934 $306,835
34 Albuquerque, New Mexico $61,503 +$29,499 $334,404
35 Houston, Texas $60,440 +$30,841 $272,279
36 Omaha, Nebraska $70,202 +$31,168 $280,961
37 Philadelphia, Pennsylvania $57,537 +$31,883 $217,897
38 Columbus, Ohio $62,994 +$33,499 $261,636
39 San Antonio, Texas $59,593 +$33,656 $257,044
40 Louisville, Kentucky $63,114 +$33,974 $248,532
41 Kansas City, Missouri $65,256 +$34,679 $239,547
42 Indianapolis, Indiana $59,110 +$35,782 $231,898
43 El Paso, Texas $55,710 +$36,504 $224,164
44 Milwaukee, Wisconsin $49,733 $36,519 $207,494
45 Oklahoma City, Oklahoma $64,251 $36,658 $205,023
46 Baltimore, Maryland $58,349 $36,688 $185,383
47 Tulsa, Oklahoma $56,648 $36,898 $209,866
48 Wichita, Kansas $60,712 $37,586 $200,864
49 Memphis, Tennessee $48,090 $41,402 $147,747
50 Detroit, Michigan $37,761 $42,423 $73,654

Source: GOBankingRates 2024

Earlier this year, a separate study by personal finance website SmartAsset showed that an individual in San Jose needed to make an annual salary of $136,739 to ‘live comfortably.’ For two working people raising two children in San Jose, they’d need to earn a combined salary of $334,547. This is the second highest on the SmartAsset study only to New York City ($138,570 and $318,406, respectively).

For comparison, the to city with the lowest salaries needed to live comfortably is Houston, Texas, at $75,088 (individual) and $175,219 (two working people raising two children).

That analysis factored in 50% of a person’s budget for needs such as housing, groceries and transportation; 30% earmarked for wants such as entertainment and hobbies; and 20% reserved for paying off debt, saving or investing.

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