10 States the Middle Class Should Flee From

It’s no secret that people are packing up and moving across the country in the interest of affordability. This is especially true for the middle class, who can afford to move and are increasingly looking to escape expensive areas.

To find states where the middle class is struggling, GOBankingRates analyzed each state by looking at the cost of living, mortgage payments, and income levels.

Find out: The minimum salary you need to buy a home in all 50 states in 2024

Read More: How to Get Rich in Real Estate Starting with Just $1,000

The study pulled data from places like the Missouri Economic Research and Information Center, Bureau of Labor Statistics, Zillow, and the U.S. Census to figure out the average expenses and mortgage costs for each state. It compared those costs to the national average and calculated how much a middle-class household could save after covering expenses. Each state was ranked based on income, mortgage costs, and remaining savings to show which states the middle class should consider leaving.

Hawaii

Minimum middle class income: $81,935
Average monthly mortgage costs: $5,617
Total monthly living expenses: $8,387
Total cost of living per year: $100,640
General cost of living index: 186.2

The cost of living in Hawaii is a whopping 86% higher than the national average. The monthly average mortgage cost is more than double the national average, and so is the total monthly cost of living. Additionally, Hawaiians are -$18,705 in the red each year when it comes to savings.

Find out more: This Is the Income It Takes to Be in the Top 1% in All 50 States

Move Here: 3 Best States to Buy Real Estate in the Next 5 Years, According to Experts

California

Minimum middle class income: $87,145
Average monthly mortgage costs: $4,553
Total monthly living expenses: $7,032
Total cost of living per year: $84,385
General cost of living index: 145

The cost of living in the Golden State is 45% higher than the national average due to higher monthly mortgage payments and a total cost of living that is thousands more. And while the minimum middle-class income is not lower than the total annual cost of living in California, it is not quite $3,000 higher. That means Californians only have a measly $2,761 left in savings each year.

See More: 50 Safest and Most Affordable US Cities to Live In

Montana

Minimum middle class income: $60,095
Average monthly mortgage costs: $2,674
Total monthly living expenses: $4,702
Total cost of living per year: $56,422
General cost of living index: 94.6

Living in a state where the cost of living is about 5% lower than the national average sounds promising, but not when you realize that the remaining savings is only $3,673. For example, the monthly mortgage payment and total monthly living expenses are more than $600 per month higher than the national average — and could rise.

EJJohnson Photography/Getty Images/iStockphoto

Maine

Minimum middle class income: $61,066
Average monthly mortgage costs: $2,312
Total monthly living expenses: $4,504
Total cost of living per year: $54,053
General cost of living index: 111.3

In Maine, the average monthly mortgage and total living expenses are hundreds above the national averages each month and year. The average savings left is around $7,000. However, if the cost of living continues to rise, that number could drop.

Alaska

Minimum middle class income: $73,735
Average monthly mortgage costs: $2,145
Total monthly living expenses: $4,836
Total cost of living per year: $58,036
General cost of living index: 125.1

While the average monthly mortgage cost in Alaska isn’t far off the national average of $2,064, the total monthly living costs are nearly $800 higher than the national average of $4,070. This could spell trouble for middle-class Americans living in Alaska.

Watch: How I Went From Middle Class to Upper Middle Class

Oregon

Minimum middle class income: $68,887
Average monthly mortgage costs: $2,896
Total monthly living expenses: $5,087
Total cost of living per year: $61,046
General cost of living index: 114.1

The total cost of living in Oregon is $12,210 higher annually than the national average. Part of this additional cost is the monthly average mortgage payment, which is more than $800 higher than the U.S. average.

Idaho

Minimum middle class income: $61,853
Average monthly mortgage costs: $2,611
Total monthly living expenses: $4,599
Total cost of living per year: $55,184
General cost of living index: 101.1

Idaho’s biggest concerns for the middle class are the average monthly mortgage costs, which are nearly $550 higher than the national average, and the total monthly living costs, which also exceed the national average by more than $500. Unfortunately, those expenses are likely to continue to rise, leaving the middle class looking for a more affordable place to build a home.

Nevada

Minimum middle class income: $65,303
Average monthly mortgage costs: $2,619
Total monthly living expenses: $4,722
Total cost of living per year: $56,660
General cost of living index: 102.7

Like Idaho, Nevada’s cost of living isn’t much higher than the national average — only about 3% higher. However, the average monthly mortgage payment is more than $550 higher than the U.S. average and could rise, eventually pricing the middle class out of their home state.

Learn More: How Long $1 Million in Retirement Lasts in Each State

Rhode Island

Minimum middle class income: $71,007
Average monthly mortgage costs: $2,746
Total monthly living expenses: $4,950
Total cost of living per year: $59,403
General cost of living index: 113.4

The overall cost of living for Rhode Island is 13.4% higher than the national average. The average monthly mortgage payment is about $700 higher and the monthly cost of living is about $900 higher. If the numbers get any higher, some middle-class residents may have to pack their bags.

Washington

Minimum middle class income: $81,920
Average monthly mortgage costs: $3,482
Total monthly living expenses: $5,747
Total cost of living per year: $68,959
General cost of living index: 115.1

The cost of living in Washington is 15% higher than the national average. But the biggest concern for the middle class in the Evergreen State is that the average monthly mortgage payment is more than $1,400 higher than the national average.

Methodology: For this study, GOBankingRates analyzed each state to find the states that the middle class should flee to. First, GOBankingRates found the cost of living indexes as sourced from the Missouri Economic Resource Information Center and by using the national average expenditures for all residents as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey, the average expenditures for each state can be calculated. The total population, total households, median household income, mean household income are all sourced from the US Census American Community Survey. The average value of single family homes was obtained from Zillow Home Value Index and by assuming a 10% down payment and using the national average 30-year fixed mortgage rate as sourced from the Federal Reserve Economic Data, the average mortgage costs for each state can be calculated. Using the average mortgage and expenditure costs, the total cost of living can be calculated. The cost of living was also compared to the national average by comparing the overall cost of living index for each state. The middle class is considered to be two-thirds of the median household income, and the minimum household income to be in the middle class was calculated for each state. Assuming a household earns the minimum to be considered middle class, the average savings after the average cost of living can be calculated. Median household income was scored and weighted at 1.00, expenses were scored and weighted at 1.00, mortgage costs were scored and weighted at 1.00, and the remaining savings for households earning the minimum income to be considered middle class was scored and weighted at 1.00. All scores were sorted and added together to show the places the middle class should flee to. All data was collected on and is current through August 27, 2024.

More from GOBankingRates

This article originally appeared on GOBankingRates.com: 10 States the Middle Class Should Flee From