Mar 6, 2026
The cost of living varies widely from state to state — from taxes to groceries to housing. So does your earning potential.
Between 2019 and 2024, U.S. household incomes rose by an average 21.9%, according to a study by Visual Capitalist.
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But that increase wasn’t universal. Visual Capitalist used data from the U.S. Census Bureau to map where incomes are rising fastest (1).
“But where you live matters a lot,” according to the study. “While some states tracked close to the national average, others saw incomes climb at nearly double the pace, driven by booming local industries and major investment.”
Here’s what that could mean for your paycheck, and how much of it you have to spend to survive, depending on where you live.
The states with the fastest and slowest income growth
According to Visual Capitalist, Colorado saw the fastest-rising change in median household income — up by 46.9% between 2019 and 2024.
This was followed by:
- Georgia (+43.4%)
- Maine (+36.3%)
- Montana (+36.1%)
- Tennessee (+34.0%)
Meanwhile, some states have fallen behind because of aging populations, slower job growth, industry decline and lower labor force participation.
At the bottom of the pack were North Carolina and Oklahoma, which both saw median household income rise a relatively small 9.9%. Other relative laggards included:
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- Hawaii (+11.6%)
- District of Columbia (+12.6%)
- Illinois (+13.2%)
It’s important to factor purchasing power into any discussion of wage growth. From January 2025 to January 2026, nominal average weekly wage growth was 4.3%.
But with inflation at 2.4% during that same period, real wages (reflecting purchasing power) rose only 1.9%, indicating that many people aren’t better off than they were 20 years ago (2).
In dollar terms, the nominal average weekly wage has grown $590 since 2006 — but that works out to just $159 in real wages.
This can cut into wage growth. For example, while Colorado boasts exceptional wage growth, it also ranks second in increased inflation — which spiked 21.8% between January 2021 and December 2024 (4).
In fact, high-income jobs tend to be concentrated in cities with a high cost of living.
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But those higher wages help.
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Improving your income trajectory
If you live in a high-growth state, you can benefit from stronger job markets and demand for talent — impacting everything from career mobility to wealth-building to housing decisions.
“Rising incomes increase purchasing power, allowing buyers to qualify for larger mortgages, compete more aggressively and absorb higher monthly payments,” Hannah Jones, senior economic research analyst at Realtor.com, told Newsweek (4).
Not surprisingly, industry is a strong driver of wage increases.
In Colorado, the tech industry (including software development, bioscience, renewable energy) added more jobs than any other sector between 2018 to 2023, according to Visual Capitalist, boosting income.
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A $27.3-billion investment in the electric vehicle, aerospace and battery manufacturing sectors drove Georgia’s income growth.
Meanwhile, Maine’s strong wage growth was fueled by an 11.4% growth in tech-sector wages and an 8.5% growth in construction wages in 2024. A tight labor market helped.
Of course, many people make moves based on their occupations. Here are where and what sone of the hottest, best-paying jobs are, according to LinkedIn (5):
- Austin: Data annotators
- Chicago: Health-care reimbursement specialists
- Dallas: AI engineers, home sales specialists
- Houston: Home sales specialists
- Los Angeles: Health-care reimbursement specialists
- New York: AI engineers, data annotators and health-care reimbursement specialists
- Orlando: Home sales specialists
- San Francisco: AI engineers
You’d need such well-paying jobs to afford living in New York (most expensive city in the U.S.), San Francisco (fifth most expensive) or L.A. (eighth most expensive, according to Kiplinger (6).
So, if you’re thinking about relocating, switching jobs or upskilling, it’s worth considering industry demand, local wage trends and cost of living — and whether you could meaningfully improve your income trajectory.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Venture Capitalist (1); USA Facts (2); State Inflation Tracker (3); Newsweek (4); LinkedIn (5); Kiplinger (6)
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Vawn Himmelsbach is a veteran journalist who covers tech, business, finance and travel. Her work has been featured in publications such as The Globe and Mail, Toronto Star, National Post, CBC News, Yahoo Finance, MSN, CAA Magazine, Travelweek, Explore Magazine and Consumer Reports.
