Rising home prices have been hitting the middle class particularly hard, but some states have an easier path for these shoppers to break into homeownership. Many of those opportunities are out West, according to a new analysis from SmartAsset, a personal finance website.
SmartAsset researchers found that the best states for the middle class are clustered in the Western part of the U.S., including Utah, Wyoming, and Idaho. Many Midwest states also scored high in the rankings. But the middle class may find the toughest time with affordability in the Northeast.
“With high tax burdens, low homeownership rates and unaffordable housing, it is not too surprising that states in the Northeast tumble down the ranks,” SmartAsset researchers note.
SmartAsset ranked the best states for the middle class by examining several factors, including the percent of households in the middle class, percent of households below the middle class, number of new middle-class jobs, percent growth in middle-class jobs, effective property tax rate, the effective income tax rate, median home value, and homeownership value.
