In a surprising turn of events, South Dakota emerged as the top state for income growth in 2023, with a staggering 17% surge in household incomes. This spike far surpasses the national average increase of 4% reported by the latest Census Bureau Current Population Survey estimates.
South Dakota Leads the Way
South Dakota experienced the largest increase in both dollars and percentage growth, with the median household income jumping from $69,850 in 2022 to $81,740 in 2023. This $11,890 increase reflects the significant economic boom the state has been experiencing.
Attracting High Earners
The state's rapid population growth, highlighted in a Pew analysis of Census Bureau data, has been attracting individuals with higher salaries. South Dakota ranked 21st in SmartAsset's list of states with the highest net inflow of households earning $200,000 or more annually.
Income Growth Across the Nation
The top six states where household incomes experienced substantial growth all saw increases of over 10%. Surprisingly, states like Arkansas and West Virginia, historically known as lower-earning states, also recorded significant annual income boosts.
States Facing Declines
On the flip side, 11 states witnessed a decline in household incomes in 2023. Maryland took the biggest hit, with a 9% decrease in its median household income, dropping from $102,000 in 2022 to $91,500 in 2023. The state's economy has been stagnant, leading to a notable exodus of high-earning households.
Challenges for Maryland
The state's economic woes have also impacted its business rankings, as Maryland slipped nine spots to 31st in CNBC's annual best states for business rankings. Factors like deteriorating infrastructure and a less business-friendly environment have contributed to this decline.
North Dakota's Decline
Following closely behind Maryland, North Dakota experienced a 6% decrease in its household median income. The state faced challenges in maintaining its income levels, pointing to broader economic uncertainties.
In conclusion, the shifting landscape of household incomes across states reflects the dynamic nature of the U.S. economy. While some states enjoy remarkable growth, others are grappling with economic setbacks. Stay informed with CNBC for the latest updates on financial trends and strategies to navigate these changes.