Here's How Bad NJ Is For The Middle Class

NEW JERSEY — New Jersey ranks among the worst states in the country for how favorable it is for middle class families, according to a study by SmartAsset. The squeeze that's affecting middle-class families nationwide—the gap grows between the upper and middle classes—is certainly hitting New Jersey hard.

The Midwest region boasts the most states that are the best for middle-class families. According to a new list from the financial technology company SmartAsset, six of the top 10 best states for the middle class are in the Midwest region.

New Jersey ranked 45th on the list. According to SmartAsset's data, 36.3 percent of households in the state are middle class, and the median household income when adjusted for cost of living is $70,950. Only Virginia, New Mexico, Connecticut, New York and Louisiana were ranked worse than New Jersey.

For the purposes of its list, SmartAsset defined middle class as households earning between $35,000 and $100,000. The data used in its report came from the U.S. Census Bureau and the Bureau of Labor Statistics. (You can read SmartAsset's full methodology).

Why is NJ ranked so poorly? According, to SmartAsset's data, only 36.3 percent of households in the state are middle class, and most state's in the top 10 are over 45 percent. New Jersey home ownership rate is 64 percent and most state's in the top 10 are over 70 percent. The median home value in the state is $344,000.

According to SmartAsset, the 10 best states for the middle class are:

1. Utah
2. Idaho
3. Iowa
4. Nebraska
5. Indiana
6. South Dakota
7. Vermont
8. Montana
9. Wisconsin
10. Minnesota

Read the full SmartAsset report.