Why middle class status is out of reach for some Pennsylvanians

Pennsylvania's middle class is shrinking, and according to several recent reports, it is becoming harder for Pennsylvanians to reach the middle class tier.

Economist Oliver Rust told Consumer Affairs the middle class is capturing a lower share of income than in the '60s, '70s and '80s.

“Historically, the middle class has been the engine of American economic growth and prosperity," Rust told Consumer Affairs. "In the two decades since the mid-2000s, it has shrunk from roughly 60%, in part due to demographic changes as the population has seen a particularly steep increase at the extreme bottom and top of the economic spectrum."

The Pew research Center generally defines individuals and households with an annual household income of two-thirds to double the national median.

Here's what middle class looks like in the Delaware Valley.

More: Levittown house lists for $700,000. When will we see the first $1 million house?

Middle Class income comparable in Pennsylvania, Delaware; lower than New Jersey

Consumer Affairs utilized a calculator from the Pew Research Center to determine the minimum annual income in each state to be considered middle class.

Consumer Affairs used 2018 complete set data, and then fed those numbers into the inflation calculator provided by the U.S. Bureau of Labor Statistics.

The results indicate that Pennsylvania and Delaware have a lower middle class income threshold in the Delaware Valley.

Top 50 wealthiest towns in Pennsylvania: Do you live in one of Pennsylvania's wealthiest towns? Here are the top 50

In Delaware and Pennsylvania, a household of four needs to have a minimum annual salary of $67,830 to be considered middle class.

In New Jersey, that figure is $80,163.

Delaware and Pennsylvania hover around the middle of the country’s rankings. Maine, Illinois, Minnesota and Utah share the same minimum income as Delaware for middle-class consideration.

Nationally, global securities exchanger and fiscal management advisor Nasdaq noted a 2022 survey conducted by Gallup that indicated roughly half of Americans identified as middle class, 38% as middle class, and 14% as upper middle class, and 2% identified as upper class.

Are you considered middle class in DE?: Find out if you're still considered 'middle class' in Delaware

Reaching middle class easier in Pennsylvania

While maintaining middle class status is one thing, reaching that plateau is another.

Nasdaq notes that it is easier for families to reach middle class status in Pennsylvania than it is in Delaware and New Jersey.

Pennsylvania ranks 19th on Nasdaq's list, New Jersey is ranked 36th, and Delaware nears the bottom of the list, ranking 43rd.

$6.5 million home for sale in New Hope: Step inside and steal a peek at the kind of home $6.5 million will buy you in New Hope

Pennsylvania's median income has remained mostly flat over the past several years, according to Economc Research data.

The median income for Pennsylvania is 2020 was $70,790. In 2021, that figure was $72,630, and in 2022, the median income in Pennsylvania stood at $72,210.

This article originally appeared on Bucks County Courier Times: Middle class is getting harder to reach in Pennsylvania