Dallas Is an OK Place for the Middle Class

Dallas ranks smack-dab in the middle of affordability for middle-class families among major cities in the United States, according to a report from GOBankingRates.

A team of researchers crunched the numbers and found that among the 50 most populous cities, Dallas ranked 27th. Researchers took the median household income in Dallas, $63,985, and subtracted the annual cost of living to determine a cost-adjusted median income. This left $26,777 in the bank for homeowners. This analysis excludes the Park Cities, where the median household income exceeds $200,000.

The study uses the Pew Research Center definition of middle class, which is “a median income two-thirds to double that of the U.S. median household income.” The annual cost of living was calculated using average grocery costs, monthly mortgages, transportation fees and other miscellaneous expenses in each city. Dallas’ cost of living is slightly higher than the national average, but housing, transportation and grocery costs are notably lower than other major cities. On average, Dallas continuously ranks as an affordable city on the grand scale.

“Dallas is among the biggest cities where the median income goes the furthest,” said Ray Marek, a spokesperson for GOBankingRates. “Dallas is a good option for the middle class.”

In 2022, the Pew Research Center determined an income threshold for middle-class Americans of between $56,600 and $169,800. According to a 2024 study from SmartAsset, the income threshold for the middle class in Dallas is between $43,596 and $130,800.

While the middle-class has found somewhat affordable housing in Dallas, Big D continues to seek ways to accommodate those not in the middle-class when it comes to housing. Of the many contentious topics debated at city hall, measures related to housing often are the hottest. Minimum lot sizes, parking minimums and zoning for multifamily housing options continue to be looked at as ways to increase the supply of affordable housing for all income brackets.

According to the study, other DFW cities rank close to Dallas on the list of affordability. Arlington is 30th and Fort Worth is 32nd. The most affordable Texas city is 43rd-ranked El Paso, with $36,504 left over. The most expensive city for the middle class is Austin, which came in at 14th with only $11,546 as its cost-adjusted median income. Unsurprisingly, six of the 10 most expensive cities are in California.

Dallas proper lags behind the U.S. median income, which is $77,719. But when you broaden the scope and factor in the suburbs that make up all of North Texas, the median household income rises to $86,860. Paired with the rise in income is a matching increase in the threshold for what constitutes middle class. To be middle class in Frisco, households need to make between $97,266 and $291,828. The city has one of the highest income ceilings in the country.