These Are America’s Poorest States, Ranked
Despite being part of the same nation, the average income and living standards vary significantly across the 50 states. Maryland boasts the highest median household income, starkly contrasting with the lower earnings in the poorest states. With a national poverty rate of 10.5% and median income at $68,703, the poorest states in America fall noticeably below these figures. This list spotlights the 25 states struggling the most financially, offering insights and tips to potentially elevate your earnings.
#25: Iowa
Median income per household: $60, 523
Rate of poverty: 11.2%
Iowa’s economy, heavily reliant on manufacturing and agriculture, has recently faced challenges. The 2019 trade war significantly affected corn and soybean demand, while unpredictable weather continues to pose risks to its agricultural sector.
Despite a seven-month drop in unemployment rates, a decrease in Iowa’s labor force to its lowest since 1977 suggests people are moving elsewhere for jobs. Nearly 70% of emigrants cite employment as their primary reason, per United Van Lines data.
#24: Nevada
Median income per household: $60, 365
Rate of poverty: 12.5%
Las Vegas’s allure often worsens the plight of the desperate, contributing to Southern Nevada’s severe homelessness issue, affecting over 6,500 individuals. Many battle addictions, showcasing the region’s deeper socio-economic struggles.
Nevada grapples with insufficient affordable housing and federal aid, lagging by $342 million in combating homelessness. With many relying on low-paying jobs in leisure and hospitality, the COVID-19 pandemic has exacerbated their economic hardships through plummeting tourism and gaming revenues.
#23: Kansas
Median income per household: $59, 597
Rate of poverty: 11.4%
Kansas shines as an affordable haven, boasting a median home value of $166,000, as per Zillow. But weighing the boon of low mortgage rates against scant job prospects is advisable for potential movers.
With Kansas’s minimum wage at the federal floor of $7.25, a bill aiming for $15 by 2027 is notable. Despite a low unemployment rate, over 100,000 children, 15% of them, grapple with poverty, highlighting socioeconomic challenges.
#22: Arizona
Median income per household: $58, 945
Rate of poverty: 13.5%
From 2015 to 2018, Arizona saw the highest drop in poverty levels in the U.S., yet it remains 3% above the national poverty rate. Educational setbacks for children there predict challenging future job markets, despite the older generation’s higher education levels.
Arizona is positioned towards the end of WalletHub’s ranking on school systems, highlighted by significant dropout rates, underwhelming standardized test performances, and a noticeable shortage of educators for available positions.
#21: Georgia
Median income per household: $58, 700
Rate of poverty: 13.3%
Despite its nickname, Georgia’s not the top peach producer; that’s California. However, its $73.3 billion agricultural sector immensely boosts its economy. While having the nation’s lowest minimum wage at $5.15, most workers earn at least $7.25.
In Georgia, 461,000 children live in poverty. Atlanta faces severe income inequality, ranking poorly among major cities. A simple money-saving tip for Georgians is using a free browser extension that scours for deals online, ensuring lower prices on purchases.
