Where income has declined most nationwide

Just as inflation can drive up costs, macroeconomic shifts, layoffs, or industry downturns can lead to declines in household income, potentially posing challenges to families affording housing, groceries, and other necessities. For some, a dollar doesn't stretch as far when income drops faster than expenses increase. According to the latest Census Bureau data, household income changes can vary widely across cities, and while some cities see incomes outpace inflation, others may experience sharp declines that exacerbate rising costs.

To better understand these trends, SmartAsset analyzed data from 630 cities to rank them based on the percentage decline in median household income over one year, according to the latest data from the Census Bureau.

Key Findings

• This Seattle suburb saw the largest income decline nationwide. Marysville, WA saw the median household income drop from $104,433 in 2022 to $85,708 in 2023—a 17.93% decrease over just one year. The portion of households earning $100,000 or more dropped from 54.0% to 40.6% during the same time, although the portion of households earning over $200,000 increased slightly from 10.0% to 13.1%. 
• Wealth inequality increased in these cities. In addition to Marysville, several other cities saw a drop in median household income as well as the portion earning over $100,000, while the percentage of households earning over $200,000 increased – leading to a larger disparity between earning groups. These cities include Pflugerville, TX; Palm Bay, FL; Melbourne, FL; Atascocita, TX; Georgetown, TX; Malden, MA; Lodi, CA; Missouri City, TX; Rialto, CA; Lorain, OH; and Deerfield Beach, FL, among others.
• 33 cities saw incomes decline by 10% or more over one year. Significant declines in income were most prevalent in California (8 cities), Washington (3 cities), Texas (3 cities) and Pennsylvania (3 cities). In Kendall, FL and Palmdale, CA, these significant declines dropped the local median household income below the U.S. median of $80,610.
• Seven cities had a median income below $40,000. Flint, MI had the lowest median income at $33,141. The six others include Gary, IN ($35,033); Camden, NJ ($38,080); Detroit, MI ($38,080); Reading, PA ($38,814); Cleveland, OH ($39,041); and Canton, OH ($39,692).

Top 10 Places Where Income Declined the Most

Cities are ranked according to the percent change in estimated median household income between 2023 and 2022.

1. Marysville, Washington

• One-year change in median income: -17.93%
• Median income, 2023: $85,708
• Median income, 2022: $104,433
• Percent of households earning $100k or more, 2023: 40.6%
• Percent of households earning $100k or more, 2022: 54.0%
• Percent of households earning $200k or more, 2023: 13.1%
• Percent of households earning $200k or more, 2022: 10%

2. Champaign, Illinois

• One-year change in median income: -17.66%
• Median income, 2023: $46,232
• Median income, 2022: $56,148
• Percent of households earning $100k or more, 2023: 22.5%
• Percent of households earning $100k or more, 2022: 27%
• Percent of households earning $200k or more, 2023: 7.5%
• Percent of households earning $200k or more, 2022: 7.6%

3. Madera, California

• One-year change in median income: -17.54%
• Median income, 2023: $55,622
• Median income, 2022: $67,454
• Percent of households earning $100k or more, 2023: 23.6%
• Percent of households earning $100k or more, 2022: 30.1%
• Percent of households earning $200k or more, 2023: 4%
• Percent of households earning $200k or more, 2022: 3.8%

4. Baton Rouge, Louisiana

• One-year change in median income: -17.20%
• Median income, 2023: $41,651
• Median income, 2022: $50,304
• Percent of households earning $100k or more, 2023: 21.8%
• Percent of households earning $100k or more, 2022: 22.2%
• Percent of households earning $200k or more, 2023: 6.4%
• Percent of households earning $200k or more, 2022: 6.4%

5. Union City, California

• One-year change in median income: -16.22%
• Median income, 2023: $124,383
• Median income, 2022: $148,460
• Percent of households earning $100k or more, 2023: 58.3%
• Percent of households earning $100k or more, 2022: 62.3%
• Percent of households earning $200k or more, 2023: 29%
• Percent of households earning $200k or more, 2022: 34.5%

6. Merced, California

• One-year change in median income: -15.94%
• Median income, 2023: $53,931
• Median income, 2022: $64,160
• Percent of households earning $100k or more, 2023: 26.2%
• Percent of households earning $100k or more, 2022: 28.8%
• Percent of households earning $200k or more, 2023: 5.7%
• Percent of households earning $200k or more, 2022: 3.8%

7. Kendall, Florida

• One-year change in median income: -15.81%
• Median income, 2023: $75,301
• Median income, 2022: $89,441
• Percent of households earning $100k or more, 2023: 41.5%
• Percent of households earning $100k or more, 2022: 44.5%
• Percent of households earning $200k or more, 2023: 17.4%
• Percent of households earning $200k or more, 2022: 18.2%

8. Waterbury, Connecticut

• One-year change in median income: -15.81%
• Median income, 2023: $43,420
• Median income, 2022: $51,572
• Percent of households earning $100k or more, 2023: 16.6%
• Percent of households earning $100k or more, 2022: 23.7%
• Percent of households earning $200k or more, 2023: 1.4%
• Percent of households earning $200k or more, 2022: 3.8%

9. Allentown, Pennsylvania

• One-year change in median income: -15.68%
• Median income, 2023: $47,175
• Median income, 2022: $55,949
• Percent of households earning $100k or more, 2023: 17.8%
• Percent of households earning $100k or more, 2022: 19.1%
• Percent of households earning $200k or more, 2023: 4%
• Percent of households earning $200k or more, 2022: 2.9%

10. Bellingham, Washington

• One-year change in median income: -15.26%
• Median income, 2023: $54,867
• Median income, 2022: $64,748
• Percent of households earning $100k or more, 2023: 27.7%
• Percent of households earning $100k or more, 2022: 29.1%
• Percent of households earning $200k or more, 2023: 8.2%
• Percent of households earning $200k or more, 2022: 7.6%

Top 10 Places With the Lowest Median Income

Cities are ranked according to the lowest estimated median household income in 2023.

1. Flint, Michigan

• Median income, 2023: $33,141
• Median income, 2022: $33,036
• One-year change in median income: 0.3%
• Percent of households earning $100k or more, 2023: 9.6%
• Percent of households earning $100k or more, 2022: 7.9%
• Percent of households earning $200k or more, 2023: 1.2%
• Percent of households earning $200k or more, 2022: 0.8%

2. Gary, Indiana

• Median income, 2023: $35,033
• Median income, 2022: $36,153
• One-year change in median income: -3.1%
• Percent of households earning $100k or more, 2023: 13.2%
• Percent of households earning $100k or more, 2022: 14.7%
• Percent of households earning $200k or more, 2023: 3.7%
• Percent of households earning $200k or more, 2022: 2.2%

3. Camden, New Jersey

• Median income, 2023: $35,129
• Median income, 2022: $37,075
• One-year change in median income: -5.2%
• Percent of households earning $100k or more, 2023: 14.3%
• Percent of households earning $100k or more, 2022: 14.3%
• Percent of households earning $200k or more, 2023: 0.6%
• Percent of households earning $200k or more, 2022: 1.6%

4. Detroit, Michigan

• Median income, 2023: $38,080
• Median income, 2022: $36,453
• One-year change in median income: 4.5%
• Percent of households earning $100k or more, 2023: 15%
• Percent of households earning $100k or more, 2022: 12.7%
• Percent of households earning $200k or more, 2023: 2.7%
• Percent of households earning $200k or more, 2022: 2.2%

5. Reading, Pennsylvania

• Median income, 2023: $38,814
• Median income, 2022: $43,496
• One-year change in median income: -10.8%
• Percent of households earning $100k or more, 2023: 13.2%
• Percent of households earning $100k or more, 2022: 12.3%
• Percent of households earning $200k or more, 2023: 3%
• Percent of households earning $200k or more, 2022: 1.6%

6. Cleveland, Ohio

• Median income, 2023: $39,041
• Median income, 2022: $37,351
• One-year change in median income: 4.5%
• Percent of households earning $100k or more, 2023: 15.7%
• Percent of households earning $100k or more, 2022: 14%
• Percent of households earning $200k or more, 2023: 3.1%
• Percent of households earning $200k or more, 2022: 3.1%

7. Canton, Ohio

• Median income, 2023: $39,692
• Median income, 2022: $40,711
• One-year change in median income: -2.5%
• Percent of households earning $100k or more, 2023: 8.9%
• Percent of households earning $100k or more, 2022: 9.8%
• Percent of households earning $200k or more, 2023: 1.3%
• Percent of households earning $200k or more, 2022: 2.1%

8. Erie, Pennsylvania

• Median income, 2023: $41,377
• Median income, 2022: $43,839
• One-year change in median income: -5.6%
• Percent of households earning $100k or more, 2023: 15.3%
• Percent of households earning $100k or more, 2022: 13.5%
• Percent of households earning $200k or more, 2023: 2.1%
• Percent of households earning $200k or more, 2022: 3.7%

9. Lorain, Ohio

• Median income, 2023: $41,480
• Median income, 2022: $46,592
• One-year change in median income: -11.0%
• Percent of households earning $100k or more, 2023: 18.1%
• Percent of households earning $100k or more, 2022: 19.3%
• Percent of households earning $200k or more, 2023: 4%
• Percent of households earning $200k or more, 2022: 1.8%

10. Scranton, Pennsylvania

• Median income, 2023: $41,601
• Median income, 2022: $48,279
• One-year change in median income: -13.8%
• Percent of households earning $100k or more, 2023: 18.2%
• Percent of households earning $100k or more, 2022: 20.5%
• Percent of households earning $200k or more, 2023: 2.7%
• Percent of households earning $200k or more, 2022: 3.6%

Data and Methodology

SmartAsset examined data for estimated local median household incomes from the Census Bureau for 2023 and 2022 for 630 cities with available data and a population of at least 65,000. The percentage of households earning at least $100,000 and at least $200,000 each year was also examined.

This story was produced by SmartAsset and reviewed and distributed by Stacker.