Pew study sees a shrinking middle class in major US cities

[KamaAina]

https://www.yahoo.com/finance/news/pew-study-sees-shrinking-middle-210032023.html

A widening wealth gap is moving more households into either higher- or lower-income groups in major metro areas, with fewer remaining in the middle, according to a report released Wednesday by the Pew Research Center....

Pew defines the middle class as households with incomes between two-thirds of median income and twice the median, adjusted for household size and the local cost of living. The median is midway between richest and poorest. By Pew's definition, a three-person household was middle class in 2014 if its annual income fell between $42,000 and $125,000.

Middle class adults now make up less than half the population in such cities as New York, Los Angeles, Boston and Houston.

That sharp shift reflects a broader erosion that occurred from 2000 through 2014. Over that time, the middle class shrank in nine out of every 10 metro areas, Pew found.

[NV Whino]

1. Ya think?

[KamaAina]

2. Note that it's not just California and the East Coast anymore

Middle class adults now make up less than half the population in such cities as New York, Los Angeles, Boston and Houston.

[NV Whino]

3. A sad state of affairs.

[LisaM]

4. EXACTLY the comment I was going to make

And here's a major reason: R E N T S.

Skyrocketing out of control.

[abelenkpe]

5. +1000 nt

[GummyBearz]

7. I agree rent in big cities is a problem

I've been there. 1 bedroom apartment that ate up half my months pay check at good paying job. But that didn't kick me out of the middle class. Lack of jobs and lack of salary increases makes the middle class disappear

[LisaM]

9. But it's kicking some middle class people out of the cities...

I'm in Seattle and a lot of people are being evicted, old places are being knocked down, and they're just building tons fancy apartments, with the median for a one-bedroom being over $1500 per month.

[GummyBearz]

10. I get it

I know its a problem. 3 years ago I was paying $1750 per month in LA for a 1 bedroom condo. That makes it pretty damn hard to save up and buy something of your own. It doesn't kick you out of the middle class though since you are still making good money. It just makes you a wage/rent slave for life.

OK... maybe that breaks the typical definition of "middle class". Maybe you are right

[LisaM]

11. No, no, sorry if I was unclear.

I meant that people who are technically middle class are being kicked out of cities (not that they are no longer middle class). There are parallel problems going on here, one is that cities themselves are turning into tax havens for rich property owners (often foreign) or are catering to a wealthy younger workforce, mostly in the tech industry (AirBnB is causing other problems along these lines, too).

Then, the middle class itself is shrinking generally.

I wasn't disagreeing with you at all.

[taught_me_patience]

6. This doesn't account for the aging population and many boomers retiring

Makes the numbers look much worse than they really are.

[HuckleB]

8. Alas, I am not shocked.

Of course, I also wonder how much housing prices play a part in this.