In California, earning $100,000 annually now places households in the lower-middle class, according to new data from MoneyLion. This shift reflects the rising cost of living in one of the most expensive states in the U.S.
Using benchmarks from the Pew Research Center, the study defines “middle class” as households earning between two-thirds and double a state’s median income. In California, where the median household income is just above $100,000, the ceiling for lower-middle-class status stretches to about $111,277. As a result, even six-figure earners may struggle to make ends meet.
The financial strain is particularly evident in Los Angeles, where housing costs consume much of a $100,000 income. Median home prices remain high, and rents continue to climb in neighborhoods from Koreatown to Culver City. Basic annual expenses in California, including housing, food, transportation, and healthcare, approach $81,674, leaving little room for savings or investments.
California is not alone in this trend. Eleven other states, including Massachusetts, New Jersey, and Washington, show similar patterns. However, California stands out for how deeply the cost-of-living crisis affects daily life. Many Californians report living paycheck to paycheck despite earning what was once considered a “good” salary.
For those considering relocation, states in the South and Midwest, such as Arkansas and Oklahoma, offer a lower cost of living. However, jobs, family ties, and industry hubs keep many Californians anchored despite the financial challenges.
The middle class in California has not disappeared but has stretched and shifted, making it harder to recognize. Six figures used to symbolize upward mobility, but for many Californians, it now represents just staying afloat.
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