North Carolina income growth has failed to keep pace with the state’s booming economy, according to a new long-term study. While the state has seen rapid economic expansion over the past five decades, the typical household has not shared equally in that success.
North Carolina’s economy has grown sharply since 1970. The state now ranks eleventh in the nation by total economic output. Yet a new report released Tuesday shows that median household income has risen much more slowly than in most other states.
The study reviewed income data from 1970 to 2023. After adjusting for inflation, it found that median household income in North Carolina rose from $56,952 to $70,804. That increase of 24.3 percent places the state 40th nationwide in income growth.
Researchers said this means North Carolina has fallen behind every neighboring state. In 1970, it led South Carolina, Georgia, Virginia, and Tennessee in household income. Today, it ranks below all four.
One researcher explained the gap in simple terms. North Carolina made progress, but other states advanced faster. The state continues to attract people and businesses, yet many workers are not moving into higher-paying jobs.
The contrast is strongest when compared to Virginia. Since 1970, Virginia’s median household income has risen by more than 60 percent. That growth pushed it to nearly $90,000 by 2023. This happened even though Virginia’s overall economic output is smaller than North Carolina’s.
The findings surprised the researchers. North Carolina performed well in areas usually linked to higher income growth. It ranked near the top for growth in college-educated residents. It also ranked highly for growth in foreign-born residents. Both factors are often strong drivers of rising wages.
Despite these strengths, income gains remained modest. The study suggests that population growth alone does not guarantee prosperity. The type of jobs created matters just as much as the number of people moving in.
Researchers pointed to the state’s economic mix as a key issue. While North Carolina has attracted new residents and industries, many jobs have paid lower wages. Without more high-paying roles, income growth stays limited.
The long time span of the study covers major political shifts. It includes decades of Democratic control, followed by more than ten years of Republican leadership. During that time, leaders promoted different strategies. Some focused on education investment. Others focused on cutting taxes to spur growth.
No single political approach stood out as the clear solution in the data. Instead, the numbers showed how outside events shaped income trends.
The strongest impact came from the 2008 financial crisis. From 1970 to 2000, median household income in North Carolina rose by about 22 percent. By 2000, it reached nearly $69,400.
Then the crisis hit. By 2010, most of those gains had vanished. Median household income dropped to under $60,000. At that point, North Carolina ranked 45th in the nation for income growth since 1970.
Only in recent years has the state recovered. Income levels have climbed again, but the rebound has been slower than in many other states. This delay helped push North Carolina further down the national rankings.
The study also challenged a common belief about Sun Belt growth. Warm weather, low taxes, and steady population increases may attract people, but they do not ensure higher incomes. Without strong wage growth, economic expansion does not translate into better living standards.
Researchers stressed that the state is not failing. Growth continues, and many indicators remain positive. However, the benefits are uneven. To close the gap, the state may need to focus more on connecting workers to higher-paying industries.
The findings highlight a central question for the future. As North Carolina keeps growing, leaders face pressure to ensure that economic success reaches more households. Without changes, strong growth may continue alongside stagnant incomes.
The study suggests that the next phase of growth will depend less on size and more on quality. Higher wages, better job matches, and long-term investment may decide whether North Carolina’s income growth finally catches up with its booming economy.
