Utah Best States for the Middle Class in 2018

 

Rising home prices have been hitting the middle class particularly 

hard, but some states have an easier path forthese shoppers to break into homeownership.

Many of those opportunities are out West, according to a new analysis from SmartAsset, a personal finance website. 

1. Utah
The Beehive State takes the top spot as the best states for the middle class. Utah possesses the largest proportion of middle class households in our study, with just over 49% of households earning between $35,000 and $100,000.

This state has also seen impressive growth in middle-class jobs.
This makes it a great state to be in the middle class and also means the state can support a larger middle class. Utah also has a homeownership rate of 70%, which is a top-10 rate.

The American Dream of homeownership and financial independence is a hallmark of middle-class life. 

Indeed, working hard defines this cohort’s pull-yourself-up-by-your-bootstraps sensibility. But earning and saving up enough money to afford a down payment comfortably and reduce financial stress is getting increasingly difficult.

With inequality on the rise in America, the middle class is getting squeezed on both sides. That has made many Americans in this demographic wonder how much money they can really save and whether they will be prepared come retirement.

Some states, however, are better for the middle class than others. Below we look at metrics related to income, homeownership and taxes to find the best states for the middle class.

SmartAsset researchers found that the best states for the middle class are clustered in the Western part of the U.S., including Utah, Wyoming, and Idaho. Many Midwest states also scored high in the rankings. But the middle class may find the toughest time with affordability in the Northeast.

Key Findings

Go West – The best states for the middle class are clustered in the Western part of the U.S. For example, three of the top five states for the middle class are Utah, Wyoming and Idaho.

Midwest scores well – Other than Western states, it is states in the Midwest that score best. All but one state in our top 10 lies in either the Midwest or the Western portion of the country.

Tough for the middle class in the Northeast – With high tax burdens, low homeownership rates and unaffordable housing, it is not too surprising that states in the Northeast tumble down the ranks. Five of the worst-ranked states are New Jersey, Massachusetts, Rhode Island, New York and Connecticut. (Only Washington, D.C. ranks lower, at dead last.)

SmartAsset ranked the best states for the middle class by examining several factors,including the percent of households in the middle class, percent of households below the middle class, number of new middle-class jobs, percent growth in middle-class jobs, effective property tax rate, the effective income tax rate, median home value, and homeownership value.

Borrowers Finally See Some Relief With Mortgage Rates

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