Maryland’s rising cost of living leaves 39 percent of its residents struggling to make ends meet

By Makayla Walker 
mwalker@afro.com
AFRO Intern

Nearly four out of every 10 Maryland households cannot afford the state’s basic cost of living despite many adults working full time, according to newly released ALICE data from United Way of Central Maryland. According to 2024’s household survival budget, it costs $42,120 for one adult to afford the essentials of standard living.

The 2026 State of ALICE in Maryland report, released in June, found that 39 percent of Maryland households either live in poverty or fall into the ALICE population—an acronym for Asset, Limited, Income Constrained, Employed. These households earn more than the federal poverty level, which is $15,960 for a single individual and $33,000 for a family of four. Yet cannot consistently afford essential expenses such as housing, child care, food, transportation, health care and technology. 

Aleksey Reshetnikov, senior director of research for United Way of Central Maryland, told the AFRO that 49 percent of Black and 45 percent of Hispanic households fall below the basic survival budget. Data shows that Black households have a poverty rate of 11 percent, which is  twice that of the white households’ rate of 5 percent.

According to the National Library of Medicine Baltimore households are experiencing a wealth and income gap that is heavily dependent on race.

“Baltimore, as an example–our most populated area–is still highly segregated, and it’s so easy to see where pockets of money are and where pockets of money aren’t across the board,” Reshetnikov said, “What we’re seeing, while gentrification is a massive problem, that all costs have increased and we haven’t made up for it in wages for many jobs.” 

Reshetnikov mentioned several programs actively working to assist families seeking opportunities in the greater Baltimore community. 

Young Men United is an immersive mentorship program that’s focused on preparing young men of color for their aspiring careers or academic goals. This program services Benjamin Franklin High School, Vivian T. Thomas Medical Arts Academy and Patterson High School. 

There’s a United Way family center located in Poppleton, Md., which serves as a space to assist families with economic, health and educational inequities. This center has proven to be a catalyst for change by partnering with the University of Maryland West Baltimore campus to provide a 211 coordinator as well as a homeless prevention coordinator. 

“211 is by far the best resource I’ve seen in terms of actually getting in touch with resources,” Reshetnikov said. It’s a confidential helpline that bridges the gap between members of the community and services and support. 

The report identifies 694,650 Maryland households as ALICE in 2024, illustrating a growing affordability crisis fueled by rising living costs that continue to outpace wage growth. 

The cost of essential household expenses in Maryland has increased significantly over the past 17 years. Between 2007 and 2024, the ALICE Essentials Index, which measures the cost of six basic necessities, rose 69 percent, surpassing the 52 percent increase recorded by the Consumer Price Index during the same period. Neighboring states have also been experiencing an increase in the cost of living. 

According to a study conducted in 2024, the average cost of living for Virginians is $55,776 annually. The 2024 MERIC cost of living index indicates that Pennsylvanians pay a minimum of $49,040 annually. 

“Behind these numbers are families making impossible choices every day between groceries and utilities, child care and rent,” said Frankyln Baker, president and CEO of United Way of Central Maryland in a June press release. 

He said the data helps guide the organization’s work with community partners to address immediate needs while creating long-term pathways toward financial stability. 

The report also highlights the expanding gap between wages and the actual cost of living. In 2024, a Maryland family of four needed an annual income of $108,192 simply to cover basic household expenses—more than three times the federal poverty level for a family of that size.

Even two full-time workers employed in common occupations, such as a cook and bank teller, would collectively earn $75, 129 annually which is more than $33,000 less than what is required to meet the state’s basic household survival budget.

Although Maryland’s minimum wage increased $15 an hour in 2024, the report found that a full-time worker earning minimum wage with one school-age child still could not afford basic living expenses in any Maryland county. 

The findings also show that financial hardship extends across every major industry in the state. Workers in food service and accommodation, mining, quarrying and oil and gas extraction, and retail trade experienced some of the highest rates of financial insecurity, with approximately four in 10 households in those industries classified as ALICE.

While Maryland’s poverty rate has remained relatively stable since 2010, the number of ALICE households has steadily increased, suggesting that traditional poverty measures no longer capture the full scope of economic hardship experienced by working families.

National ALICE Director Stephanie Hoopes said the research demonstrates that affordability challenges have been building for years, leaving many households without financial reserves to absorb rising expenses.

“Already stretched thin, ALICE families have no cushion for rising gas or utility costs- forcing tough tradeoffs with other necessities,” Hoopes said in a June press release. “That’s the insight policymakers and community leaders need to build a stronger future for ALICE and all.”

Researchers say the report provides a more comprehensive picture of financial hardship by measuring whether household incomes can realistically cover the cost of basic necessities rather than relying solely on the federal poverty threshold.

The post Maryland’s rising cost of living leaves 39 percent of its residents struggling to make ends meet appeared first on AFRO American Newspapers.