Yahoo Finance 6 Cities The Middle Class Won’t Be Able To Afford 5 Years From Now
In the United States, households making a little under $40,000 to a little over $119,000 are considered middle class. With housing prices and the cost of living soaring, the middle class will not be able to keep up.
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GOBankingRates reached out to real estate experts to determine some cities that will become virtually out of the question for anyone in the middle class come 2029.
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Knoxville, Tenn.
Knoxville’s population has been rapidly growing. The city has seen an increase of about 40,000 people just since 2020.
Eric Preston, CEO and founder of Agent Launch, said that quick population growth will make Knoxville harder to afford for the average American.
“Their population might increase by 16% by 2040, which will drive housing prices as should a surge in new construction development,” he said.
Preston said a large reason people were attracted to Knoxville was its cost of living (COL). Goods and services cost 13.5% less than the nation’s average. If prices continue to rise, that will no longer be true, given the projected home value in Knoxville is already $13,000 higher than the U.S. median projected home value.
Bakersfield, Calif.
We all know California is an expensive state to live in, but Bakersfield has been one of the more affordable places to live in the state. Hannah Jones, a realtor and home improvement expert, said that’s about to change.
“The year-over-year price increase for real estate is around 13% and the average home price in 2025 is expected to be somewhere around $520,000.” For comparison, the average home price in the United States is $495,100.
Currently, the average home price in Bakersfield is $386,119 — still under the nation’s average. But, that’s up 6.1% from last year. It makes sense that home prices will soon be higher than the nation’s average.
Orlando, Fla.
“With great sunny weather and lavish tourist attractions, this place holds a great appeal for homebuyers, which is exactly why its home prices and real estate market are booming,” Jones said. Orlando’s average home price right now is $388,798. That’s up 5.1% from last year.
As far as COL, Orlando is only slightly behind the nation’s average. According to Numbeo, a family of four’s estimated monthly costs are $4,130 without including rent. Nationwide, that figure is $4,152. With the way housing prices have increased, we can expect COL to increase with it. Groceries in Orlando already cost about 3% more than what people pay on average.
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Boise, Idaho
Boise’s current average home price is $491,295. That’s up 4.8% since last year at this time.
“Technological growth and beauty have attracted many new residents,” Ben Johnson, the CEO of Big Ben, explained. “The influx has raised housing prices, making it ever more difficult for middle-class people to afford housing.”
Boise’s COL is currently 8% higher than the national average, and housing prices are 26% higher than the rest of the nation. Boise is quickly creeping out of the middle class’s price range.
Raleigh, NC
“Good schools and quality of life have forced many young families and professionals into the city, making it one of the fastest-growing areas of the state,” Johnson said. “With its population boom, property values, as well as rental prices, have become quite expensive.”
The average home price in Raleigh is $448,240, up 3.9% from last year. However, the COL is 4% lower than the national average.
However, if housing prices keep rising, that’s bound to change — especially by 2029. Healthcare prices in the city are already 3% higher than you’ll find elsewhere in the country.
Nashville, Tenn.
Another Tennessee city makes the list.
Johnson said that, like Knoxville, Nashville has seen dramatic population growth, which means housing prices have gone up.
“Housing demand has increased tremendously amid the new residents, especially in the entertainment and healthcare sectors, which has pressured home values and rents.”
Right now, the average price of a Nashville home is $444,640, up almost 2% since last year. The COL is 2% lower than the national average, but could become more expensive as home prices go up. The cost of homes is currently 6% higher than the national average.
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This article originally appeared on GOBankingRates.com: 6 Cities The Middle Class Won’t Be Able To Afford 5 Years From Now
