Every state's median household income has increased since 1970 – except one

Is your state better off than it was 50 years ago? A new report is revealing which states have seen the largest swings in median income since 1970 and which factors were most associated with these changes.

For this analysis, the Urban Institute looked at the median household incomes of states between 1970 and 2023 using U.S. Census Bureau data, one-year American Community survey data and IPUMS microdata. 

US households take home 20K more in income than in 1970

By the numbers:

According to the research organization’s findings, the median U.S. household takes home nearly $20,000 more in income today than it did in 1970 after adjusting for inflation.

Based on this number alone, it would suggest that the average person in the U.S. is better off financially now than they were 50 years ago. 

But the Urban Institute noted that this single number fails to capture an underlying reality of the country’s economy: Not every state has experienced the same economic growth.

"No single metric can sum up a state's economy and how that translates for a particular family," Brett Theodos, the lead author of the research said in a statement to FOX Local. "But as a starting point, we thought it was helpful to see how the median household was doing over an extended period of time. The spread is pretty stark."

Inflation-adjusted incomes have grown most in these states

Dig deeper:

In general, inflation-adjusted incomes in Western, mid-Atlantic, and New England states have grown the most since 1970, while incomes in Midwestern states have grown the least. 

Utah saw the greatest percentage growth in median income, whereas West Virginia was the only state to see a median income fall.

"Median household income increased nearly 80 percent in Utah, after adjusting for inflation, and did not grow at all in West Virginia," Theodos continued, adding, "West Virginia was hit especially hard by the long decline of employment in the mining industry. The story here isn’t about a single policy choice - it’s about how deeply the state’s economic base has changed and how challenging it has been to replace those lost high‑wage jobs. The data suggest that long‑term investments in education, workforce development, and new industry growth will likely matter most for reversing that trajectory."

Educational attainment, immigration drive economic growth

Big picture view:

The research found that a state’s educational attainment was the most important factor associated with income change. 

According to the Urban Institute, increasing educational attainment could lead to increased incomes for state residents. In addition, higher-paying jobs could attract people with higher educational attainment into the states, and strong collegiate programs could entice out-of-state students who then stay after graduation.

An increasing share of a state’s foreign-born population was also positively associated with income growth. The research team said the pattern may reflect immigration-driven growth or immigrants’ preference for growing regions.

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In contrast, state sales and income taxes, whether higher or lower, had no association with changes in median household income. In addition, states with colder temperatures and higher property taxes saw greater median income growth, contrary to conventional wisdom.