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Home Celebrity

Making $150k? You’re Considered Lower Middle Class In These Places

rmtsa by rmtsa
February 19, 2024
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Making 0k? You’re Considered Lower Middle Class In These Places
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In the past, a lower six-figure salary would place most people in a comfortable place in their lives, but not anymore. Thanks mostly to inflation, individuals earning $100k+ are considered lower middle class in some parts of the country according to new research from GOBankingRates.

The banking platform released a report that takes a closer look at how far lower six figure salaries go in different places across the country when factoring in living costs, and in some states, the amount falls flat.

Northern California tops the list of places that price out $150k annual earners.

“In San Francisco, the median home price hit $1.2 million in December 2023. If you’re making $150K a year before taxes, that puts you in a tough spot for buying a home,” said Jeff Rose, founder of Alliance Wealth Management per the report. “Monthly payments on a $1.2 million home, even with a substantial down payment, could easily exceed $5,000 or more, depending on the mortgage terms and interest rates. This could account for more than 40% of your gross monthly income [if you make $150K], far above the recommended 30% or less.”

Arlington, Va is another location that qualifies those making ~$90,000-$150,000 as lower middle class.

“Clients I work with in Arlington are seeing that impact with the cost of housing, transportation, healthcare, education and general lifestyle,” Financial advisor Rodney Griffin told GOBankingRates. “While $150,000 may be a comfortable salary in some places, high demand from many people with comparative salaries can create an increased cost of living.”



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