Discover the Regions with the Biggest and Smallest Income Growth Over the Last 50 Years

Americans have experienced a rise in incomes over the past half-century, yet a closer look reveals a starkly uneven distribution across different states.

According to an analysis by the Urban Institute, the average U.S. household earns nearly $19,000 more now than it did in 1970, once inflation is accounted for—a commendable increase of 32%. However, this overall figure conceals significant discrepancies when broken down by state.

States such as Utah and Colorado have seen household incomes soar by 77.6% and 66.6% respectively, more than doubling the national growth rate. In contrast, states like Michigan and West Virginia have barely seen any positive change, with increases of just 2.9% and a slight decline of 0.4%, respectively.

The Urban Institute’s research indicates that income growth has been most pronounced in Western, New England, and mid-Atlantic states. States such as New Hampshire, California, and Arizona have experienced substantial income growth, with increases of 62.2%, 61.0%, and 60.2%, respectively, far outpacing the national average.

On the flip side, states like Missouri, Indiana, and Pennsylvania have lagged, with income growth rates of just 13.3%, 14.1%, and 15.2%, respectively, highlighting a significant regional disparity in economic progress over the decades.

Income trends don’t necessarily reflect wage growth alone, the study noted — they’re also shaped by who moves in or out of each state.

Scroll down to see how incomes have changed in all 50 states.

What explains the gap between states?

Educational attainment was the most important factor associated with a state’s income change, the Urban Institute found.

States that saw larger increases in residents with bachelor’s degrees tended to be the ones with bigger gains in median household income — but there are several possible reasons for that, according to the study:

• Higher educational attainment could directly boost residents’ earning potential
• States with more high-paying jobs may attract workers who already have college degrees
• Strong college programs can draw people from out of state who then stay after graduation

The other factor strongly associated with income growth: an increase in the share of immigrants within a state’s population.

“This could reflect that immigration leads to economic growth, that immigrants seek out areas that have demonstrated high economic growth, or both,” the report noted.

Changes in natural resource extraction are also part of the story. Major coal producers in the 1970s — West Virginia, Kentucky, Pennsylvania and Ohio — saw job losses as the industry contracted, slowing income growth in several Appalachian states.

Other variables often thought to promote economic development — lower taxes, warmer
temperatures and population growth — did not significantly correlate with income growth, researchers said.

How have incomes actually changed?

Utah saw the largest growth in median household income from 1970 to 2023, rising from about $52,600 to $93,400. That jump moved it from 35th highest in the nation to eighth.

The report attributed the increase to the state’s “booming tech sector” and “growing financial sector” while emphasizing its diversified economy.

At roughly $93,000, Colorado now ranks 9th in median household income, up from 30th in 1970. Arizona has also climbed sharply, going from 44th to 20th overall.

Other states haven’t kept pace. Alaska had the highest median household income in 1970 ($73,168 inflation-adjusted) but now ranks 12th at $86,631.

West Virginia is the only state where household income has actually declined after adjusting for inflation, dropping from 28th ($56,161) in 1970 to 49th ($55,948) — only Mississippi currently ranks lower ($54,203), according to the analysis.

Median household incomes are highest in Massachusetts, at $99,858, followed by New Jersey ($99,781) and Maryland ($98,678).

The findings come from an analysis of U.S. Census data by the Urban Institute, with all median household income figures expressed in 2024 dollars.

U.S. states ranked by the change in median household income from 1970 to 2023 (Urban Institute, Jan. 2026)

1. Utah: 77.6%
2. Colorado: 66.6%
3. New Hampshire: 62.2%
4. California: 61.0%
5. Arizona: 60.2%
6. Virginia: 60.1%
7. Texas: 48.5%
8. Idaho: 48.0%
9. Massachusetts: 47.7%
10. Washington: 45.9%
11. Kansas: 45.8%
12. New Jersey: 42.5%
13. Rhode Island: 41.3%
14. Maryland: 41.0%
15. Florida: 40.4%
16. Minnesota: 39.7%
17. Hawaii: 39.3%
18. Vermont: 38.7%
19. North Dakota: 38.2%
20. Montana: 36.7%
21. South Dakota: 36.5%
22. Maine: 35.1%
23. Arkansas: 34.9%
24. Georgia: 33.8%
25. Alabama: 33.3%
26. Connecticut: 33.2%
27. Nebraska: 32.8%
28. Tennessee: 32.6%
29. Oklahoma: 32.0%
30. South Carolina: 31.9%
31. New York: 30.5%
32. Illinois: 30.2%
33. Kentucky: 29.9%
34. Delaware: 28.6%
35. Wyoming: 27.6%
36. Oregon: 26.7%
37. Nevada: 26.2%
38. New Mexico: 26.0%
39. Louisiana: 25.8%
40. North Carolina: 24.3%
41. Mississippi: 22.4%
42. Iowa: 20.4%
43. Wisconsin: 18.7%
44. Alaska: 18.4%
45. Ohio: 16.6%
46. Pennsylvania: 15.2%
47. Indiana: 14.1%
48. Missouri: 13.3%
49. Michigan: 2.9%
50. West Virginia: -0.4%

U.S. states ranked by 2023 median household income (expressed in 2024 dollars) (Urban Institute, Jan. 2026)

1. Massachusetts: $99,858
2. New Jersey: $99,781
3. Maryland: $98,678
4. New Hampshire: $96,838
5. California: $95,521
6. Hawaii: $95,322
7. Washington: $94,605
8. Utah: $93,421
9. Colorado: $92,911
10. Connecticut: $91,665
11. Virginia: $89,931
12. Alaska: $86,631
13. Minnesota: $85,086
14. Rhode Island: $84,972
15. New York: $82,095
16. Delaware: $81,361
17. Vermont: $81,211
18. Illinois: $80,306
19. Oregon: $80,160
20. Arizona: $77,315
21. North Dakota: $76,525
22. Nevada: $76,364
23. Texas: $75,780
24. Idaho: $74,942
25. Georgia: $74,632
26. Wisconsin: $74,631
27. Nebraska: $74,590
28. Pennsylvania: $73,824
29. Maine: $73,733
30. Florida: $73,311
31. Wyoming: $72,415
32. South Dakota: $71,810
33. Iowa: $71,433
34. North Carolina: $70,804
35. Montana: $70,804
36. Kansas: $70,333
37. Indiana: $69,477
38. Michigan: $69,183
39. Missouri: $68,545
40. South Carolina: $67,804
41. Ohio: $67,769
42. Tennessee: $67,631
43. New Mexico: $62,268
44. Alabama: $62,212
45. Oklahoma: $62,138
46. Kentucky: $61,118
47. Arkansas: $58,700
48. Louisiana: $58,229
49. West Virginia: $55,948
50. Mississippi: $54,203