Business Insider Took A Closer Look At Middle Class in America

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A Business Insider analysis of 2022 US Census Bureau data revealed stark contrasts in the middle-class population across states. Utah leads with 52.7% of its residents in the middle class, while only 42.3% of New Yorkers fall into this category. Pew Research Center defines the middle class as earning between two-thirds and double the state's median income. For example, in Texas, that's $48,200 to $144,600, while in Minnesota, it's $54,900 to $164,700.

Nationally, the median household income was $74,580 in 2022. However, this varies significantly by state, with median incomes ranging from $52,700 to $101,000. Even within the middle class, many struggle to meet daily needs and save for retirement. High earners, dubbed HENRYs (High Earners, Not Rich Yet), often feel financially strained despite their incomes, delaying major life decisions like having kids or buying a home.

Only three states—Utah, Idaho, and Alaska—have half of their households in the middle class. The Midwest shows a more balanced income distribution, while states like New York and Louisiana have less than 44% in the middle class. The South has the lowest median incomes, while the Northeast and Mid-Atlantic states boast higher figures.

Upper-class households are concentrated in states with high median incomes, needing above $178,300, and even $202,000 in Washington, DC. Conversely, states like Mississippi and West Virginia require much lower incomes to be considered upper class. These disparities highlight the diverse economic landscapes across the US.

Read more at Business Insider

Why This Matters To Our Industry:

The variations in middle-class demographics across states directly impact consumer behavior and demand. States with a strong middle class, like Utah and Idaho, might see more consistent purchasing patterns, meaning steadier demand for goods and services. On the flip side, states with fewer middle-class households, like New York, may experience more volatility in consumer demand, which can affect shipping and logistics planning.

Our Take:

Understanding these income disparities can help you predict and adapt to shifting demand patterns. For instance, targeting logistics resources in regions with a robust middle class might lead to more stable and predictable operations.

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