Which Cities Are Seeing the Largest Growth in Middle Class Households?

Updated: January 3, 2025

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Although the middle class has faced headwinds in recent decades, some cities are going against the trend by expanding their share of middle-income households. These areas provide counterpoints to the broader national narrative of middle-class decline and offer glimpses of economic resilience.

To uncover these pockets of growth, MoneyGeek analyzed household data from 608 cities, tracking shifts in the income composition between 2018 and 2023. Our analysis discovered that 40% of all cities in our study experienced growth in the percentage of middle-income households, and six of the top 10 are in western states. Below, we focus on the 246 cities where the middle class grew.

KEY FINDINGS
  • San Tan Valley, Arizona, has seen the biggest increase in middle-income households, with a 10-percentage-point increase between 2018 and 2023.

  • Middle-income households comprise roughly 42% of all households studywide, with the highest percentage found in San Tan Valley (60%) and the lowest in Davis, California (30%). However, this number is down 1% from the 2018 average.

  • One Northeastern city ranks in the top 10 for growth in middle-income households: Nashua, New Hampshire.

Cities With the Largest Increases in Middle Class Households

San Tan Valley, Arizona, and several California cities — including Costa Mesa, Turlock, Alameda and Chino — had some of the most notable increases in middle-income households. The highest percentage comes from San Tan Valley, which saw a 10-percentage-point jump from 2018 to 2023, with 60% of all households now classified as middle-income. Poinciana, Florida (9%), and League City, Texas (8%), followed, with nearly half of their households — 47% or more — falling into the middle-income category.

Rank
City
Difference in Middle-Income Households (2018–23)
Population (2023)
% of Middle-Income Households (2023)

1

San Tan Valley, AZ

10.1%

119.5K

59.6%

2

Poinciana, FL

8.7%

78.8K

50.2%

3

League City, TX

8.2%

117.5K

47.5%

4

Conroe, TX

7.9%

108.2K

51.8%

5

Costa Mesa, CA

7.6%

108.4K

48.9%

6

Turlock, CA

7.2%

72.1K

46.8%

7

Alameda, CA

7.0%

75.3K

45.4%

8

Chino, CA

6.9%

93.1K

51.2%

9

Nashua, NH

6.4%

91.0K

46.5%

10

Redlands, CA

6.2%

72.6K

47.7%

Note: Percentages may appear tied due to rounding; however, the actual values differ slightly.

Middle Class Income in the Largest US Cities

The largest cities in the study reported modest gains in middle-income households, with none exceeding growth of five percentage points. In these cities, 41% of all households are middle-income households on average, and none ranked within the top 50 overall.

Gilbert, Arizona (pop. 275,408), ranks highest and is shy of 3%, while two Texas cities — San Antonio and Lubbock — follow close behind. Three of the 10 largest U.S. cities saw slight increases in middle-income households — San Antonio, Philadelphia and Chicago — though Chicago’s change was virtually flat at under 0.1%.

Rank
City
Difference in Middle-Income Households (2018–23)
Population (2023)
Middle-Income Households (2023)
Middle Income Floor (2023)
Middle Income Ceiling (2023)

57

San Antonio, TX

2.8%

1.5M

42.7%

$41,548

$124,644

198

Philadelphia, PA

0.4%

1.6M

37.6%

$40,201

$120,604

242

Chicago, IL

0.0%

2.7M

38.2%

$49,649

$148,948

-

Dallas, TX

-0.3%

1.3M

41.5%

$46,747

$140,242

-

Houston, TX

-0.3%

2.3M

40.3%

$41,758

$125,274

-

New York, NY

-0.7%

8.3M

36.3%

$51,051

$153,154

-

San Diego, CA

-1.0%

1.4M

41.1%

$70,520

$211,560

-

Los Angeles, CA

-1.1%

3.8M

38.6%

$53,134

$159,402

-

Jacksonville, FL

-2.4%

985.8K

40.6%

$45,379

$136,138

-

Phoenix, AZ

-2.6%

1.7M

41.1%

$53,109

$159,328

Tips to Stretch Your Income

Building financial security in a middle-class household can come down to smart habits and consistent planning. These tips can help you manage expenses, grow savings and prepare for long-term financial stability.

    debtConsolidation icon

    Tackle debt strategically

    To reduce financial strain, prioritize paying off high-interest debts like credit cards. Consider debt consolidation or refinancing strategies to lower interest rates and simplify payments.

    wage icon

    Pay yourself first

    Treat savings like a bill — set up automatic transfers to a savings or retirement account as soon as you get paid. This makes saving effortless and consistent.

    creditCard2 icon

    Use credit cards strategically

    Take advantage of credit cards rewards programs and cash back offers for purchases you’d make anyway. Pay off balances in full each month to avoid interest charges.

    freelancer icon

    Boost your earning potential

    Pursuing certifications, completing online courses or professional development programs and upskilling can lead to promotions or higher-paying opportunities.

    insurance2 icon

    Evaluate your insurance policies

    Review health, auto and home insurance annually to ensure you’re adequately covered without overpaying. Compare providers and look for discounts, such as for bundling policies.

Methodology

MoneyGeek analyzed income data from the U.S. Census's one-year American Community Survey (ACS) for over 600 cities to uncover where the middle class is growing most. Of those, 246 showed increases in the percentage of middle-income households between 2018 and 2023. We excluded cities that had zeros reported for any household income brackets.

We calculated the middle-class income range in each location using the Pew Research Center, which defines “middle class” as two-thirds to double the median household income. We then used the lognormal distribution and the cumulative distribution function to estimate the proportion of households in the local middle-income range. We used the lower limit ($200,000) as the bin center because we didn't have an upper limit for the bin for the "$200,000 or more" income range.

We did this process for both 2018 and 2023 income data. Our final ranking is based on the percentage point difference between the percentage of middle-income households in 2023 and 2018. The top city had the largest increase in the proportion of middle-income households.

In this analysis of the middle class's share of income in U.S. cities, we use the phrase "middle class" alongside "middle income." However, it is important to note that middle class and middle income are not entirely interchangeable, and other factors contribute to the perception of "being middle class."

Full Dataset

Below is the data that informed our analysis. We used income as our key indicator to determine the middle-income range in each city and to calculate the number of households within these parameters. Note: Cities with 0% for a five-year percentage point difference appear so due to rounding but did have minor decreases overall.

Rank
City
Difference in Middle-Income Households (2018–23)
Middle-Income Households (2023)
Middle Income Floor (2023)
Middle Income Ceiling (2023)
Population (2023)

1

San Tan Valley, AZ

10.1%

59.6%

$61,975

$185,926

119,497

2

Poinciana, FL

8.7%

50.2%

$47,433

$142,300

78,799

3

League City, TX

8.2%

47.5%

$78,983

$236,950

117,520

4

Conroe, TX

7.9%

51.8%

$51,351

$154,054

108,244

5

Costa Mesa, CA

7.6%

48.9%

$67,622

$202,866

108,367

6

Turlock, CA

7.2%

46.8%

$54,397

$163,190

72,099

7

Alameda, CA

7.0%

45.4%

$81,211

$243,634

75,344

8

Chino, CA

6.9%

51.2%

$69,457

$208,370

93,122

9

Nashua, NH

6.4%

46.5%

$65,111

$195,334

90,997

10

Redlands, CA

6.2%

47.7%

$65,295

$195,886

72,552

About Anja Solum, CEPF


Anja Solum, CEPF headshot

Anja Solum is a certified educator in personal finance and the Data Journalism Manager at MoneyGeek. For over six years, she has produced data analyses and studies for agency and in-house teams across multiple verticals.

Solum holds a bachelor's degree in communication arts from Florida International University. She's passionate about using data to tell compelling, informed stories that empower readers.