Michigan Ranks 17th for Middle-Class Affordability

A new study from Upgraded Points has identified where in the U.S. a middle-class income stretches the furthest.

As economic pressures mount, middle-class families across the U.S. are finding it increasingly difficult to cover essential living expenses while maintaining a comfortable lifestyle. Rising costs for housing, healthcare, childcare, and transportation have placed additional strain on household budgets, leaving many unable to save or spend on discretionary items. While these financial pressures affect families nationwide, the degree to which a middle-class income stretches varies significantly depending on location.
This report examines where in the United States middle-class families can achieve the most financial security. By comparing the income required to cover essential expenses to the median family income in each location, the findings highlight areas where households have the most financial breathing room. To control for variations in family size and composition across locations, all of the statistics used are for 2-adult households with 2 children. The results shed light on how regional differences in cost of living and wages impact the ability of middle-class families to invest in more than just getting by — whether that means saving for retirement, spending on recreation and entertainment, or taking a vacation.
This juxtaposition highlights the challenges middle-class families face at both ends of the cost spectrum. In high-cost states, strong economies and higher incomes aren’t always enough to make up for rising prices, while in lower-cost states, incomes often fail to provide the financial stability families need to get ahead.

Here is a summary of the data for Michigan:
Available income after necessities: $28,249
Median family income: $125,000
Income required to cover necessities: $96,751
Housing costs: $13,351
Food costs: $11,699
Childcare costs: $19,284
Transportation costs: $18,158
Healthcare costs: $13,564
Other necessities costs: $8,868
Income taxes: $11,827

For reference, here are the statistics for the entire United States:
Available income after necessities: $21,939
Median family income: $130,000
Income required to cover necessities: $108,061
Housing costs: $17,221
Food costs: $12,456
Childcare costs: $19,896
Transportation costs: $17,587
Healthcare costs: $16,254
Other necessities costs: $10,507
Income taxes: $14,137