These are the best—and worst—U.S. metro areas for the middle class, new study shows

About 50% of the American population is considered middle class, according to 2022 data from the Pew Research Center. And if you’re part of that class, where you live in the U.S. can greatly impact your quality of life — for better or for worse.

The research group Ludwig Institute for Shared Economic Prosperity (LISEP) ranked the 50 largest U.S. Metropolitan Statistical Areas that offer the best and worst quality of life for the middle class.

The study ranked the livability of each city based on the following:

• True living cost (housing, food, childcare, etc.)
• True weekly earnings (wages for the cost of living for all workers)
• True rate of unemployment out of the population (the percentage of the population unable to find a full-time, living-wage job)

“Across the nation we are seeing both ends of the spectrum — communities where middle- and working-class families are faring well and others where financial survival remains a struggle,” Gene Ludwig, chair of the LISEP, said in an analysis of the study’s findings.

The San Jose-Sunnyvale-Santa Clara metro area in California is the best place for the middle class, according to the LISEP report.

While the cost of necessities for a family of four in the area has increased some 75% since 2005 — from about $67,000 to $117,500 — the typical worker has gained nearly 20% in purchasing power during that same time.

Households in the area have, on average, more than 25% of their income leftover after paying for essential expenses including childcare, transportation and groceries, according to the report.

A separate 2023 study from WalletHub ranked San Jose as the second happiest city in the U.S. with high marks for emotional and physical well-being and income and employment.

San Jose is most notable for its connection to Silicon Valley. Major global tech companies like eBay, PayPal and Zoom all have their headquarters in the city.