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, according to a new MoneyLion analysis comparing income growth and living expenses across all 50 states.
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.
While Texas performed better than many higher-cost states, the findings suggest that many households continue to feel financial pressure despite rising wages.
Texas Income Growth Falls Slightly Behind Rising Costs
According to the study, 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.
Southern States Led the Nation
Louisiana and Mississippi posted the strongest results in the country.
Louisiana recorded the largest positive gap, with middle-class income growth exceeding cost-of-living increases by 10.8%, followed closely by Mississippi at 10.3%.
Alabama, South Carolina and West Virginia rounded out the top five states where income gains most outpaced rising living costs.
Many States Saw Larger Financial Declines
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.
Those states included Washington, Utah, Maryland, California, Montana, Wyoming, Virginia, Connecticut, Hawaii, Rhode Island, New York, New Hampshire, New Jersey and Massachusetts.
What the Findings Mean for Texas
Although Texas continues to attract new residents because of its relatively affordable housing and strong job market, the study suggests 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.
How the Study Was Conducted
MoneyLion compared each state’s median household income with estimated annual necessities costs for 2019 and 2024 using data from the U.S. Census Bureau’s American Community Survey, the Missouri Economic Research and Information Center, the Bureau of Labor Statistics Consumer Expenditure Survey, Zillow Home Value Index, and Federal Reserve mortgage rate data.
Researchers calculated the percentage change in both income and cost of living over the five-year period, then measured whether household income growth exceeded — or fell behind — the increase in living expenses. Data was current as of June 3, 2026.
