What It Takes To Be Middle Class In CA: New Studies Show Why It's So Hard To Get By

LOS ANGELES, CA — America's "middle class" has consistently shrunken over the last few decades as the cost of living continues to outpace annual wages. In California, home to the most expensive places to live nationwide, what it takes to be middle class can be eye-popping.

Two new reports shed light on why it's so hard to get by in the Golden State, where a near-$300,000 salary is considered middle class in some cities.

In 1971, 61 percent of Americans lived in middle-class households. By 2023, about 51 percent of Americans lived in middle-class households, according to a Pew Research Center analysis published in 2024.

The Pew Research Center defines the middle class as having a household income two-thirds to double the national median income, adjusted for family size and local cost of living. Depending on where a person lives, the middle-class range shifts significantly based on factors such as the local job and housing market, according to SmartAsset, an online resource for consumer financial advice and information.

And when comparing median incomes to local housing costs, some working class neighborhoods turn out to be way more expensive for locals than some of the nation's wealthiest communities are for their residents.

That is why the U.S. News and World Report ranked the middle class Orange County city of Westminster as the nation's most expensive place to live. Coming in at number two was Newport Beach, home to athletes, celebrities, and some of the priciest real estate in the country.

Though the median home value in Westminster is $855,339 compared to Newport Beach's $2,408,436, median rents in the two cities are pretty similar: $2,063 in Westminster and $2,765 in Newport Beach. But the median income in Westminster is much lower than in Newport Beach, reflecting the struggle residents face in making ends meet. In Westminster, the median income is $87,310, roughly half Newport Beach's median income of $165,385.

In ranking the most expensive places to live, U.S. News and World Report found the top three were in California, as were 10 of the top 15.

1. Westminster, CA
2. Newport Beach, CA
3. San Rafael, CA
4. Spring Valley, NY
5. El Cajon, CA
6. Atlantic City, NJ
7. Huntington Park, CA
8. Lawrence, MA
9. Inglewood, CA
10. Glendale, CA
11. Hawthorne, CA
12. New Brunswick, NJ
13. Costa Mesa, CA
14. El Monte, CA
15. Newark, NJ

SmartAsset, similarly, released a study analyzing income data in the 100 largest cities in the country using data from the U.S. Census Bureau and the Pew Research Center definition of middle class. The study found that to be middle class in California, a person must earn between $66,766 and $200,298, and the median household income averages $100,149.

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U.S. wages have trailed behind the rising cost of living, and California is home to some of the nation's highest middle-class incomes, according to SmartAsset's analysis.

Golden State cities ranked multiple times in the top 20 U.S. cities that require high incomes to be middle-class.

According to SmartAsset, the top 20 U.S. cities with the highest middle-class incomes include:

1. San Jose, California: middle-class range is $296,452 to $98,817, median $148,226

2. Irvine, California: middle-class range is $291,462 to $97,154, median $145,731

3. Frisco, Texas: middle-class range is $290,888 -to $96,963, median $145,444

4. San Francisco, California: middle-class range is $279,602 to $93,201, median $139,801

5. Arlington, Virginia: middle-class range is $267,164 to $89,055, median $133,5826.

6. Gilbert, Arizona: middle-class range is $249,936 to $83,312, median $124,968

7. Seattle, Washington: middle-class range is $237,490 to $79,163, median $118,745

8. Plano, Texas: middle-class range is $231,802 to $77,267, median $115,901

9. Enterprise, Nevada; middle-class range is $222,256 to $74,085, median $111,128

10. San Diego, California: middle-class range is $222,064 to $74,021, median $111,032

11. Chandler, Arizona: middle-class range is $220,568 to $73,523, median $110,284

12. Washington, DC: middle-class range is $219,414 to $73,138, median $109,707

13. Anchorage, Alaska: middle-class range is $210,712 to $70,237median $105,356

14. Chula Vista, California: middle-class range is $210,202 to $70,067, median $105,101

15. Scottsdale, Arizona: middle-class range is $209,786 to $69,929, median $104,893

16. Oakland, California: middle-class range is $204,470 to $68,157, median $102,235

17. Anaheim, California: middle-class range is $202,290 to $67,430, median $101,145

18. Jersey City, New Jersey: middle-class range is$201,502 to $67,167, median $100,751

19. Boston, Massachusetts: middle-class range is $195,582 to $65,194, median $97,791

20. Henderson, Nevada: middle-class range is $190,830 to $63,610, median $95,415