Middle-class income in Colorado has jumped more than most states: Data

DENVER (KDVR) –The income that qualifies for “middle-class” has changed drastically over the last decade, and the range for Colorado’s middle-class has jumped more than most states, according to a new report.

From 2013 to 2023, Colorado’s middle-class income saw the third-highest increase of any state, according to the report by GOBankingRates.

The study looked at annual household incomes for each state and defined the middle class as those who make two-thirds to double the median income.

In 2013, the report found that the middle-class income in Colorado ranged from $38,955 to $116,866. According to the U.S. Census Bureau, the median income was $49,549 for individual workers, $65,631 for a family size of two, and $72,259 for a family of three.

In 2023, according to the report, middle-class households in Colorado brought in $61,647 to $184,940 a year. That year, the median income in Colorado was $74,274 for an individual worker, $97,689 for a family of two and $115,443 for a family of three, according to the U.S. Census Bureau.

Here’s how the middle-class income ranges have evolved over the years for the top five states with the biggest changes:

1. Washington

• 2023 middle-class income range: $63,301 to $189,904
• 2013 middle-class income range: $39,652 to $118,956

2. California

• 2023 middle-class income range: $64,223 to $192,668
• 2013 middle-class income range: $40,729 to $122,188

3. Colorado

• 2023 middle-class income range: $61,647 to $184,940
• 2013 middle-class income range: $38,955 to $116,866

4. Utah

• 2023 middle-class income range: $61,167 to $183,500
• 2013 middle-class income range: $39,214 to $117,642

5. Oregon

• 2023 middle-class income range: $53,617 to $160,852
• 2013 middle-class income range: $33,486 to $100,458

Income ranges changed the least in Alaska, from $47,173 to $141,520 in 2013, to $59,557 to $178,672 in 2023.

The finance website published another report in April 2024 looking at things that have impacted the definition of the middle class over the years. Some things experts say have changed include:

• A “middle-class” family now typically requires two incomes, where it used to only require one.
• Homeownership rates are much lower for Millennials and Gen Z as prices have risen faster than inflation, and those generations face more debt from things like student loans. Now, the average middle-class earner is more likely to rent than own a home.
• Being middle-class has become more about financial security and opportunity. The rise of the gig economy led to more people opting for freelance and remote work in place of a traditional 9-5 job, while still having a stable income, health insurance and money to save.
• Where a college degree used to be seen as a ticket to upward mobility, middle-class families now struggle with student loan debt and rising costs of tuition and healthcare.
• A high school diploma used to be enough to set one up for a middle-class life, but now workers often need a degree or specialized training to land jobs that pay decently.
• Housing costs have risen so much that households earning six figures may struggle with a middle-class lifestyle due to high prices in metropolitan areas, all while families at the national median income may be solid in the middle-class in smaller cities.
• Sustainability has become a middle-class value as families are more invested in sustainable living.
• With rising levels of debt, managing debt and financial stability while maintaining a comfortable lifestyle is now viewed as a key aspect of being middle-class.

GOBankingRates used data from the U.S. Census Bureau’s 2023 and 2013 five-year American Community Survey, and used the definition of middle class from Pew Research.