Making a six-figure salary might sound like the ticket to a comfortable life, but in some parts of the country, it's barely enough to scrape by. A new reality bites in Phoenix-area cities Gilbert, Chandler, and Scottsdale, where citizens raking in up to $127,977 still fall into the lower middle class category, according to a recent report carried out by AZfamily.com. The eye-opening figures indicate a broader trend nationwide, with some urban dwellers needing as much as $150,000 to break free from the same economic band, as shown by data from GOBankingRates.
A city that was booming with opportunity, Phoenix metro is now caught in the thorns of inflation, with 13% reported in 2022 by financial advisor Isaac Montano. The dramatic surge in living costs, particularly housing, has put a strain on what used to be the American dream. In an interview obtained by AZfamily, local resident Rene commented on the surreal nature of the current economy, saying "It almost just takes out the middle class all together. So it’s almost like monopoly money. Like a million dollars is now $100,000 from twenty years ago."
In a detailed analysis by Fox News Digital, findings reveal that the financial expectations for middle-class status have been dramatically recalibrated across several U.S. cities. GOBankingRates lead content data researcher Andrew Murray noted the heightened bar for escaping the lower middle class, stating that "To escape the lower middle class, you’ll need to earn as much as $150,000, which is substantially higher than what it used to be."
While some may see these Arizona cities as affluent, Montano suggested that though challenging, buying a home in the Phoenix area is still within grasp. He advised potential homebuyers to move quickly, cautioning "the best time to do things would be now because in ten years we will be dealing with the same exact situation if not worse," in a statement obtained by AZfamily. Montano also observed an increase in people needing a cosigner to get on the property ladder, emphasizing the importance of choosing someone who can contribute and is reliable.
Gilbert, Chandler, and Scottsdale aren't alone in the cost of living crisis. According to the study by GOBankingRates, other cities where a six-figure income is not enough for middle class status include Arlington, San Francisco, and San Jose, with the top earners in the "lower middle class" bracket making between $128,964 and $152,652. And it's not just the cities of the sunny southwest that are taking a hit. Seven California cities made the list because of their spiraling property market, as detailed in the analysis shared by Fox News Digital. The Golden State's homeowners are shelling out close to $30,000 annually on housing according to the Bureau of Labor Statistics, prompting Murray to conclude that "anyone who wants to live comfortably in California will need to be a high income earner." In this pricey paradise, a six-figure income is increasingly becoming the bare minimum.
