According to a new MoneyLion analysis, middle-class Texans are earning more than they did five years ago, but their incomes have not kept pace with the rising cost of living. The study found that Texas ranked 22nd nationwide, with middle-class income growth trailing increases in the cost of living by 0.9% between 2019 and 2024.

Income Growth vs. Cost of Living

The study revealed that Texas’ median household income increased from $61,874 in 2019 to $79,721 in 2024. During the same period, the estimated annual cost of necessities rose from $33,418 to $43,361. Although both income and wages increased significantly over the five-year period, living expenses rose at a slightly faster pace, leaving Texas with a net income-versus-cost-of-living change of negative 0.9%.

The analysis measured whether gains in median household income outpaced increases in basic living expenses, including housing, transportation, and other essential costs. Louisiana and Mississippi posted the strongest results in the country, with middle-class income growth exceeding cost-of-living increases by 10.8% and 10.3%, respectively.

While Texas experienced only a modest shortfall, several states saw much steeper declines. Massachusetts ranked last, with income growth lagging behind rising living costs by 23.2%. New Jersey followed at negative 22.8%, while New Hampshire, New York, and Rhode Island also posted double-digit declines.

Overall, 14 states experienced income losses of 10% or more when compared with increases in living expenses. These states included Washington, Utah, Maryland, California, Montana, Wyoming, Virginia, Connecticut, Hawaii, Rhode Island, New York, New Hampshire, New Jersey, and Massachusetts.

Although Texas continues to attract new residents due to its relatively affordable housing and strong job market, the study suggests that inflation and higher household expenses have eroded much of the purchasing power gained through wage increases. Compared with many coastal states, Texas remains relatively affordable. However, the report indicates that even in the Lone Star State, middle-class families are finding it increasingly difficult to stay ahead of rising everyday costs.

Original reporting: The Dallas Express — read the source article.