Brookings reports that many U.S. cities, despite conventional wisdom to the contrary, still retain a sizable middle class. Memphis was near the top of the list of cities where the middle class hollowed out as the 20th century ended and 21st century began. Today, among the 72 cities with more than 100,000 households, Memphis ranks #53 for presence of the middle class.
San Francisco ranked first and Detroit was last. Other rankings were Charlotte at #14, Austin at #17, Raleigh at #22, New Orleans at #27, Louisville at #36, Nashville at #39, Baltimore at #43, Indianapolis #53 (tied with Memphis), and #62 St. Louis.
Memphis
29.5% — Less than $21,433
25.1% — $21,433 to $41,109
19.7% — $41,109 to $65,952
14.9% — $65,952 to $106,100
8.0% — $106,100 to $200,000
2.8% — More than $200,000
Percentage of Households Earning more than $41,110:
45.4% — Memphis
57.1% — Nashville
56.4% — Large Cities
56.3% — Southern Cities
Nashville
19.9% — Less than $21,433
23.1% — $21,433 to $41,109
22.8% — $41,109 to $65,952
19.7% — $65,952 to $106,100
11.1% — $106,100 to $200,000
3.5% — More than $200,000
Large U.S. Cities
23.5% — Less than $21,433
20.3% — $21,433 to $41,109
19.4% — $41,109 to $65,952
17.8% — $65,952 to $106,100
13.7% — $106,100 to $200,000
5.5% — More than $200,000
Southern Cities
22.4% — Less than $21,433
21.2% — $21,433 to $41,109
20.3% — $41,109 to $65,952
17.9% — $65,952 to $106,100
13.2% — $106,100 to $200,000
4.9% — More than $200,000
Source: Brookings – How big (or small) is your city’s middle class?
Salary must be indexed to cost of living in a particular city. A household in San Francisco or DC may bring in well over $100K, but that is not nearly enough to buy a home in those cities. However, in Memphis or Birmingham, a person making $50K CAN purchase a home. It is rare to find a (long term) household in Memphis making >$100K but still renting. This is common in a place like SF.
So while SF and Boston have more households making over $100K, that salary doesn’t go as far as half that amount would in smaller, Southern cities.
So, while it appears that expensive cities like SF, DC, Boston and NYC are doing better in terms of “middle class”, that is not the entire story. We need to redefine exactly what “middle class” is for each region/city.
I know Brookings mentions this in the article, but this data is essentially no good to lump Memphis in with San Francisco or Boston. It is more useful to compare Memphis to Louisville, Nashville, Birmingham and New Orleans, where the COL is similar.
“Middle Class” in Memphis is probably starts at a household income of ~ $65-$70K. In SF, that’s not enough to rent a decent apartment – much less afford to form a family and buy a home.
While it Memphis may have many drawbacks, “affordable family formation” is one of its pluses.
You are right. Great points.
We wrote about the difference in cost of living a few months ago and how young professionals can move to Memphis and give themselves a raise because of the cost of living. Here’s the link (check comparisons at bottom of post): http://www.smartcitymemphis.com/2014/05/memphis-millennials-location-of-choice/
That’s why we tried to choose cities that are comparable to Memphis in their costs of living.
These stats are depressing to read