Study claims wealthy blue state is America's most affordable, beating states thousands are moving to | Fox Business
Category: News & PoliticsVia: jbb • 3 weeks ago • 1 comments
By: Matteo Cina (Fox Business)
WalletHub released their 2023 analysis: "2023's Best & Worst States to Raise a Family" on Monday.
The analysis took 51 key indicators of family friendliness, such as affordability, median income, and employment rate, and combined the results into one final score.
US REAL ESTATE HAS 'MONUMENTAL OPPORTUNITY' TO SOLVE HOUSING CRISIS IN 2023: EXPERT
The five broad categories that comprised the total score are: family fun, health and safety, education and child care, affordability, and socioeconomics.
Regarding affordability, the report indicates that Connecticut, Massachusetts, and New Jersey are the most affordable states with Arizona, Nevada, and Florida being the least affordable. The researchers came to this conclusion by using features such as credit score, mortgage debt, paid family leave, and median income.
When asked about this methodology WalletHub analyst Jill Gonzales told Fox News Digital "Housing costs are included in the methodology, and other types of costs such as those incurred by child-care are adjusted for the median family income. At the same time, we have taken cost of living into account, as the median annual family income is adjusted for it." She continues, "The assumption is that a person earns the median annual income in that state, and as such higher prices are offset by a higher income so that all states are treated equally."
"Other factors that impact affordability in our ranking include the state of the family finances, credit scores, the ability to put aside money for children's education and the availability of paid family leave. Thus, for the purpose of this report affordability has a broader definition than just grocery costs or the cost of services."
In contrast to this study, the Missouri Economic Institute ranks Massachusetts as the 49th worst state for affordability, behind Hawaii and DC. The Massachusetts Institute of Technology also calculates that two adults both working with two kids, each need to make a salary of at least $63,000 to have a "living wage" in the state.
Additionally, U-HAUL ranks California, the 21st most affordable state according to WalletHub, as the third-fastest shrinking state with Texas, 35th most affordable state according to WalletHub, being the fastest growing in terms of Americans moving.
In terms of socio-economics, calculated based on unemployment rate, job security, poverty level, share of two parent families, states like North Dakota, Vermont, and Montana were the top three with Nevada, Louisiana, and Mississippi at the bottom.