Can You Afford America's Top 5 Livable Cities on a Middle-Class Salary?
Estimates for what counts as a middle-class income can vary depending on where you live and the national median income. But can the middle-class still afford to live somewhere nice, or are they stuck in the orbits of wherever the jobs are in their field at a disadvantaged income?
Generally, middle-class income falls between $56,000 and $169,800, according to Pew Research Center. Fidelity reports that the average middle-class American can afford a home price of approximately three to five times annual income. At the time of this writing, the average home value in the U.S. is just shy of $361,000, according to Zillow.
We looked at the five most livable cities identified by Livability and compared cost of living, housing and groceries with the national average to see whether they're still affordable for the middle class. We also factored in median household income in each area along with average home value.
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Flower Mound, Texas
Median household income: $159,636
Overall cost of living: 4% higher
Housing: 19% higher
Groceries: 9% lower
Average home value: $593,204
2021 home value: $431,523
While groceries in Flower Mound, Texas are below the national average, the home value is quite a bit above it. Home values in this city have risen over the last five years, but residents who make between $118,600 and $197,700 can still afford homes in Flower Mound. The median household income is $159,636, just below the upper end of the middle-class income range.
Verdict: Still affordable
Carmel, Indiana
Median household income: $142,597
Overall cost of living: 6% lower
Housing: 4% lower
Groceries: 0.2% lower
Average home value: $547,770
2021 home value: $385,802
Groceries and housing costs are slightly lower than the national average and the overall cost of living is 6% lower which can leave more wiggle room for the average household. Those making between $109,500 to $182,600 would be able to afford a home in Carmel, but because the median income is $142,597, many wouldn't fit into the upper end of the range.
Verdict: Not affordable
Sugar Land, Texas
Median household income: $139,402
Overall cost of living: 14% higher
Housing: 28% higher
Groceries: 4% lower
Average home value: $436,193
2021 home value: $323,547
Housing costs in Sugar Land are 28% higher than the national average, so it would be more comfortable for those on the higher end of the median income range. Residents who make between $87,200 to $145,400 could afford a home in Sugar Land, which is doable with the median household income.
Verdict: Still affordable
Naperville, Illinois
Median household income: $148,112
Overall cost of living: 37% higher
Housing: 131% higher
Groceries: 4% higher
Average home value: $586,451
2021 home value: $411,100
A housing affordability span from $117,300 to $195,500 makes the higher end of the range a struggle for those making around the median Naperville income. For residents comfortable paying around five times their household income for housing, Naperville homes could fit into their housing budget. Higher overall housing costs, however, may make homeownership a struggle for the middle class.
Verdict: Not affordable
Roswell, Georgia
Median household income: $131,188
Overall cost of living: 1% higher
Housing: 1% lower
Groceries: 0% lower
Average home value: $639,094
2021 home value: $441,542
Even though the overall cost of living is only 1% higher than, and groceries are even with, the national average, the high average home values mean that the middle class would struggle to afford housing here. Based on the average home values, residents would need to make between $127,800 and $213,000 to afford a home. Based on the median household income, housing is largely unaffordable for middle class residents of Roswell.
Verdict: Not affordable
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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