The Gap Between Rich and Poor Has Never Been Wider In These Towns

24/7 Wall St. Insights

Out of the 40 cities where the middle class is shrinking, six are in California, five in Florida, and four in Texas — but none of these are where the middle class is shrinking the most.
The median family income ranges among the cities on the list from $52,443 to $116,103.
The erosion of the middle class can lead to many negative changes in a city, from less spending and business downturns to shifts in neighborhood populations.
Also: 2 Dividend Legends to Hold Forever

In 2024, a Gallup poll revealed that 54% of Americans identified themselves as belonging to the middle class. While there’s no concrete definition of “middle class,” the Gallup poll did identify factors that make people consider themselves middle class. Those who self-identified as middle class were more likely to make between $40,000 to $99,999 per year, be ages 18 to 54, and have a political affiliation as Republican or Independent — though Democrats are steadily rising in this category. With inflation significantly changing our understanding of finances — and how much everyone needs to live comfortably — more people are adopting the middle class as their defined social class. (Don’t let the talking heads fool you: inflation is running rampant.)

The average income of the middle class has also shrunk over time, from 62% in 1970. Alternately, those who consider themselves as upper class saw aggregate income increase from 29% to 50%. This is widening the divide between social classes, leading to a phenomenon known as “the missing middle.” So where do we see the middle class shrinking the most, and how is this affecting the way our society progresses?

To determine the cities where the middle class is shrinking, 24/7 Wall St. reviewed five-year data on family income from the U.S. Census Bureau’s American Community Survey. Cities were ranked based on the percentage-point change in the share of family households residing in middle-income census tracts from 2012 to 2022. Middle-income census tracts were defined as census tracts in which the median family income is within 25% of the median family income for the city as a whole. Only census tracts that spatially overlap with city boundaries by at least 50% were considered. Census tract and place boundaries were sourced from the U.S. Census Bureau. Only cities with at least 150,000 residents were considered in our analysis.

Most of the cities on the list, where the middle class shrank the most in the past decade, are not very large cities, with between 150,000 to 250,000 residents. Interestingly, while some might assume that in places where the middle class is shrinking the lower-income class would be increasing, this is not always the case. In many of the places on the list, the share of families in the upper-income class rose during that time, sometimes this happened even as the share of families in the lower-income classes fell, and sometimes when it rose.

Why We Need to Talk About the Middle Class

For as long as many people can remember, the middle class represents the backbone of American society. But this is becoming less and less commonly the case. The middle class’ decline in different cities represents significant changes. This trend often signals some level of income inequality, with more stratification between high-earning and low-earning workers. These changes can also affect everything from the education system to the job market, affecting how the city itself grows and progresses.

Here are the 40 cities where the middle class is shrinking:

40. New Orleans, Louisiana

Change in share of families in middle-income tracts, 2012 to 2022: -2.7 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: +8.0 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: -5.3 ppts.
Median family income, 2022: $73,549
Total population, 2022: 380,408

39. Pembroke Pines, Florida

Change in share of families in middle-income tracts, 2012 to 2022: -2.8 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: -1.9 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: +4.6 ppts.
Median family income, 2022: $94,525
Total population, 2022: 170,472

38. Des Moines, Iowa

Change in share of families in middle-income tracts, 2012 to 2022: -2.9 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: -1.8 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: +4.7 ppts.
Median family income, 2022: $76,602
Total population, 2022: 213,164

37. Portland, Oregon

Change in share of families in middle-income tracts, 2012 to 2022: -3.0 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: +2.7 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: +0.3 ppts.
Median family income, 2022: $116,103
Total population, 2022: 646,101

36. El Paso, Texas

Change in share of families in middle-income tracts, 2012 to 2022: -3.0 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: -2.3 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: +5.3 ppts.
Median family income, 2022: $63,067
Total population, 2022: 677,181

35. Santa Rosa, California

Change in share of families in middle-income tracts, 2012 to 2022: -3.2 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: +10.6 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: -7.4 ppts.
Median family income, 2022: $110,196
Total population, 2022: 178,221

34. Escondido, California

Change in share of families in middle-income tracts, 2012 to 2022: -3.3 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: -3.7 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: +7.0 ppts.
Median family income, 2022: $89,970
Total population, 2022: 151,114

33. Peoria, Arizona

Change in share of families in middle-income tracts, 2012 to 2022: -3.3 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: +3.2 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: +0.1 ppts.
Median family income, 2022: $102,661
Total population, 2022: 191,292

32. Glendale, Arizona

Change in share of families in middle-income tracts, 2012 to 2022: -3.4 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: +6.0 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: -2.6 ppts.
Median family income, 2022: $77,602
Total population, 2022: 248,083

31. Jackson, Mississippi

Change in share of families in middle-income tracts, 2012 to 2022: -3.6 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: +1.0 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: +2.6 ppts.
Median family income, 2022: $52,443
Total population, 2022: 153,271

30. Boston, Massachusetts

Change in share of families in middle-income tracts, 2012 to 2022: -3.6 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: +4.6 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: -1.0 ppts.
Median family income, 2022: $106,015
Total population, 2022: 665,945

29. Madison, Wisconsin

Change in share of families in middle-income tracts, 2012 to 2022: -4.0 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: +1.5 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: +2.6 ppts.
Median family income, 2022: $111,576
Total population, 2022: 268,516

28. Spring Valley, Nevada

Change in share of families in middle-income tracts, 2012 to 2022: -4.8 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: -2.7 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: +7.4 ppts.
Median family income, 2022: $79,763
Total population, 2022: 220,114

27. Birmingham, Alabama

Change in share of families in middle-income tracts, 2012 to 2022: -5.1 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: -3.6 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: +8.7 ppts.
Median family income, 2022: $55,541
Total population, 2022: 200,431

26. Baton Rouge, Louisiana

Change in share of families in middle-income tracts, 2012 to 2022: -5.3 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: +3.4 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: +1.9 ppts.
Median family income, 2022: $68,228
Total population, 2022: 225,500

25. Chesapeake, Virginia

Change in share of families in middle-income tracts, 2012 to 2022: -5.4 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: +6.3 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: -0.9 ppts.
Median family income, 2022: $109,923
Total population, 2022: 249,377

24. Atlanta, Georgia

Change in share of families in middle-income tracts, 2012 to 2022: -5.6 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: +11.9 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: -6.3 ppts.
Median family income, 2022: $103,886
Total population, 2022: 494,838

23. Fayetteville, North Carolina

Change in share of families in middle-income tracts, 2012 to 2022: -5.7 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: +8.4 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: -2.8 ppts.
Median family income, 2022: $63,485
Total population, 2022: 208,697

22. Corpus Christi, Texas

Change in share of families in middle-income tracts, 2012 to 2022: -6.0 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: +3.5 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: +2.5 ppts.
Median family income, 2022: $78,428
Total population, 2022: 317,804

21. Amarillo, Texas

Change in share of families in middle-income tracts, 2012 to 2022: -6.7 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: -0.2 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: +6.9 ppts.
Median family income, 2022: $76,749
Total population, 2022: 200,360

20. Henderson, Nevada

Change in share of families in middle-income tracts, 2012 to 2022: -8.1 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: +0.0 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: +8.0 ppts.
Median family income, 2022: $100,794
Total population, 2022: 318,063

19. Santa Ana, California

Change in share of families in middle-income tracts, 2012 to 2022: -8.3 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: +2.3 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: +6.0 ppts.
Median family income, 2022: $83,689
Total population, 2022: 311,379

18. Newport News, Virginia

Change in share of families in middle-income tracts, 2012 to 2022: -8.8 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: +0.8 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: +8.0 ppts.
Median family income, 2022: $77,483
Total population, 2022: 185,118

17. Hialeah, Florida

Change in share of families in middle-income tracts, 2012 to 2022: -9.0 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: +9.5 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: -0.5 ppts.
Median family income, 2022: $55,066
Total population, 2022: 222,996

16. Augusta, Georgia

Change in share of families in middle-income tracts, 2012 to 2022: -10.0 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: -0.4 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: +10.4 ppts.
Median family income, 2022: $60,664
Total population, 2022: 201,615

15. Tulsa, Oklahoma

Change in share of families in middle-income tracts, 2012 to 2022: -10.0 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: +2.7 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: +7.4 ppts.
Median family income, 2022: $74,430
Total population, 2022: 411,938

14. Irvine, California

Change in share of families in middle-income tracts, 2012 to 2022: -10.2 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: +3.3 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: +6.9 ppts.
Median family income, 2022: $153,615
Total population, 2022: 304,527

13. Sunnyvale, California

Change in share of families in middle-income tracts, 2012 to 2022: -10.4 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: -3.2 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: +13.5 ppts.
Median family income, 2022: $190,031
Total population, 2022: 154,573

12. Oxnard, California

Change in share of families in middle-income tracts, 2012 to 2022: -11.3 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: +0.5 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: +10.8 ppts.
Median family income, 2022: $89,908
Total population, 2022: 202,279

11. Tampa, Florida

Change in share of families in middle-income tracts, 2012 to 2022: -11.6 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: +11.0 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: +0.6 ppts.
Median family income, 2022: $84,185
Total population, 2022: 388,768

10. Urban Honolulu, Hawaii

Change in share of families in middle-income tracts, 2012 to 2022: -12.1 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: +8.1 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: +4.0 ppts.
Median family income, 2022: $106,192
Total population, 2022: 348,547

9. Paradise, Nevada

Change in share of families in middle-income tracts, 2012 to 2022: -12.5 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: +13.8 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: -1.3 ppts.
Median family income, 2022: $68,168
Total population, 2022: 189,733

8. Anchorage, Alaska

Change in share of families in middle-income tracts, 2012 to 2022: -12.7 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: +9.4 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: +3.3 ppts.
Median family income, 2022: $115,272
Total population, 2022: 290,674

7. Paterson, New Jersey

Change in share of families in middle-income tracts, 2012 to 2022: -12.8 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: +4.4 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: +8.4 ppts.
Median family income, 2022: $59,976
Total population, 2022: 157,864

6. Orlando, Florida

Change in share of families in middle-income tracts, 2012 to 2022: -12.9 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: +6.5 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: +6.4 ppts.
Median family income, 2022: $74,980
Total population, 2022: 307,738

5. Clarksville, Tennessee

Change in share of families in middle-income tracts, 2012 to 2022: -14.0 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: +5.8 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: +8.3 ppts.
Median family income, 2022: $73,333
Total population, 2022: 167,882

4. Laredo, Texas

Change in share of families in middle-income tracts, 2012 to 2022: -15.6 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: +5.4 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: +10.2 ppts.
Median family income, 2022: $66,315
Total population, 2022: 255,293

3. Fort Lauderdale, Florida

Change in share of families in middle-income tracts, 2012 to 2022: -16.6 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: +9.3 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: +7.3 ppts.
Median family income, 2022: $87,676
Total population, 2022: 182,673

2. Murfreesboro, Tennessee

Change in share of families in middle-income tracts, 2012 to 2022: -16.7 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: +2.1 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: +14.6 ppts.
Median family income, 2022: $90,863
Total population, 2022: 153,487

1. Jersey City, New Jersey

Change in share of families in middle-income tracts, 2012 to 2022: -20.1 ppts.
Change in share of families in upper-income tracts, 2012 to 2022: +10.4 ppts.
Change in share of families in lower-income tracts, 2012 to 2022: +9.7 ppts.
Median family income, 2022: $102,072
Total population, 2022: 287,899

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