24/7 Wall St. Insights
- A recent analysis revealed that South Dakota had the largest increase in household income in the United States.
- Is farm income the reason for that gain?
- Also: Dividend legends to hold forever.
According to the Census Bureau, household income in the United States rose 4% between 2022 and 2023, as measured from July to July. The total hit $80,610. However, the figure varied widely from state to state. One of America’s smallest states by population had the largest increase.
South Dakota’s median household income rose 17% to $81,740. Based on population, it ranks 47th, at 828,797. The state with the second largest gain is Vermont. Its median household income rose from 13.5% to $85,190. It ranks 49th in population, at 647,818.
Why did South Dakota do so well? The exact answer is unknown. The largest employers in the state are agriculture, tourism, and forestry. Beef prices rose last year, but according to the USDA, wheat prices fell. Despite the fall, wheat prices remained near record levels. Farm income may have helped state income rise. The Dakota Institute claims farm incomes are a primary reason for residents’ financial success.
Labor force participation is high in South Dakota compared to most states. However, there is no direct correlation between this number and household income. One theory is that people who moved to the state have higher incomes than the country’s balance. There is no solid proof that this is true either.
No simple answer readily explains why household income rose so much in South Dakota between 2022 and 2023.
This State’s Population Is Vanishing Before Our Eyes
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