1 in 4 NC households aren’t poor but can’t make ends meet. It’s a risk for everyone
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- 28% of NC households are ALICE households — not poor, but struggle to afford basics.
- Four in 10 NC households are below the ALICE Threshold, either ALICE or in poverty.
- A family of four in NC needs $79,596 annually to be above the ALICE Threshold.
More than a quarter of North Carolina households are above the federal poverty level but still don’t have enough money to afford basic expenses.
The national nonprofit United Way has a name for these households, which make up 28% of households in the state: ALICE — an acronym for asset limited, income constrained, employed.
These are families and individuals who don’t qualify for financial assistance or other programs designed to help people in poverty, said Sara Carlson, mission advancement manager for United Way of North Carolina.
“They’re forced to make impossible choices,” Carlson told The News & Observer in a phone interview. “They don’t have enough money for everything, so they need to choose between rent or utilities, or food or filling a prescription.”
Combined with the 13% of households that are in poverty, 41% of North Carolina households are below the ALICE Threshold, meaning their income isn’t enough to afford needs such as housing, food, healthcare, transportation, technology and childcare. That’s according to The State of ALICE in North Carolina report, which was released in June and considers data from 2024.
The majority of North Carolina households are above the ALICE threshold. But ALICE households include people who have jobs that communities depend on, working as childcare providers, cashiers, delivery drivers and food service workers, Sally Gordon, director of mission advancement for United Way of North Carolina, said in an emailed statement.
“ALICE households spend most of their income on necessities and have limited ability to save or invest,” Gordon said.
That can affect whole communities, not just individual families.
“When a large share of residents struggle financially, local businesses may see weaker consumer spending, communities may face workforce instability, and economic growth can be constrained,” Gordon said.
With the share of households below the ALICE Threshold at 41%, North Carolina ranks No. 32 among the 50 states and Washington, D.C. Louisiana has the highest share of households below the ALICE Threshold, 49%, and North Dakota has the lowest, 31%.
Cost of living in North Carolina
In North Carolina, a family of four — two adults and two children requiring childcare — needs an annual household income of $79,596 or more to be above the ALICE Threshold. An individual adult needs to make at least $31,740.
Depending on where in the state you live, though, those income thresholds could be lower or higher.
In Wake County, for example, a single adult needs to make at least $43,332 to make ends meet. A family of four needs a household income of $104,940.
ALICE trends in NC
The percentage of North Carolina ALICE households slowly decreased from a high of 31% in 2022 to 28% in 2024. During that time, the percentage of households in poverty stayed at 13%.
But this trend doesn’t necessarily indicate that things are getting better, Carlson said. You need to look at county-level data.
In 2022, 58% of Orange County households were above the ALICE Threshold. Two years later, only 53% were above that threshold, as households in poverty increased one percentage point, and ALICE households increased three percentage points.
The percentage of households below the ALICE Threshold also varies among different age and racial groups.
Statewide, more than half of Black and American Indian/Alaska Native households, and nearly half of Hispanic households, struggle to afford basic needs. But only 36% of white households are below the ALICE threshold.
Also, 69% of households headed by people under age 25 and half of households headed by people age 65 and older are below the ALICE Threshold.
ALICE in the Triangle
Most Triangle counties have smaller shares of ALICE households and households in poverty compared to the state average. However, Johnston and Orange counties have higher shares of ALICE households, and Orange has a higher share of households in poverty.
Here are statistics for the Triangle:
- Chatham County: 27% of households are ALICE households, and 11% are in poverty
- Durham County: 26% of households are ALICE households, and 9% are in poverty
- Johnston County: 29% of households are ALICE households, and 8% are in poverty
- Orange County: 33% of households are ALICE households, and 14% are in poverty
- Wake County: 22% of households are ALICE households, and 8% are in poverty
This story was originally published July 7, 2026 at 4:19 PM.
