Living comfortably in a major U.S. city now requires a six-figure income in more than half of the country’s largest metropolitan areas, according to a new study.
The analysis by by GOBankingRates found that Americans must earn at least $100,000 per year to live comfortably in 26 of the nation’s 50 biggest cities.
The financial website analyzed data from the 2024 U.S. Census American Community Survey, the Bureau of Labor Statistics, and other sources to calculate the income needed to maintain a comfortable lifestyle.
Using the 50/30/20 budgeting rule – allocating 50 percent of income to necessities, 30 percent to discretionary spending, and 20 percent to savings – researchers determined the salary required not just to survive, but to thrive in each city.
San Jose, San Francisco, and San Diego topped the list as the most expensive places to live comfortably – each demanding salaries of over $200,000 annually.
In San Jose, where the average price of a single-family home exceeds $1.5 million, the study found residents need a staggering $264,946 per year to live comfortably alone – the highest of any U.S. city.
San Jose, San Francisco, and San Diego topped the list as the most expensive places to live comfortably – each demanding salaries of over $200,000 annually. Pictured: An aerial view of San Jose, California
New York City ranked fifth, with researchers estimating that singles must earn $184,420 per year to live comfortably in the city that never sleeps. Pictured: An aerial view of New York City, New York
The average monthly mortgage payment in the city best known as ‘The Capital of Silicon Valley’ sits at a whopping $8,563.
Other Californian cities including San Francisco, San Diego, and Los Angeles followed closely behind with ‘comfortable salaries’ listed at $251,398, $206,353 and $194,920, respectively.
New York City ranked fifth, with researchers estimating that singles must earn $184,420 per year to live comfortably in the city that never sleeps.
Using the same budgeting formula, GOBankingRates found $92,210 is the minimum income required simply to cover basic expenses while living alone in New York.
However, the report notes that the data may be skewed for New York, since it is based on mortgage costs rather than rental prices. Because most New Yorkers rent, the true cost of living comfortably could be even higher – though those with roommates may manage on less.
Overall, California cities dominated the ranking, with nine metros – including Long Beach, Oakland, Sacramento, Bakersfield, and Fresno – all requiring six-figure salaries to live comfortably.
San Francisco earned the second spot with an estimated comfortable living salary of $251,398 and an average monthly mortgage cost of $7,899, according to a study by GOBankingRates. Pictured: The Golden Gate Bridge in San Francisco, California
Los Angeles, California ranked fourth with single residents needing to earn a $194,920 salary to ‘live comfortably’ in one of the Golden State’s biggest cities. Pictured: Venice Beach in Los Angeles, California
Meanwhile, in Texas, Austin stood out as the state’s priciest city, with residents needing $122,875 per year to maintain a comfortable lifestyle – the only Texas city in the top tier. Pictured: Austin, Texas skyline
Meanwhile, in Texas, Austin stood out as the state’s priciest city, with residents needing $122,875 per year to maintain a comfortable lifestyle – the only Texas city in the top tier.
At the other end of the scale, Detroit, Michigan, was named the most affordable major U.S. city. Residents there can live comfortably on an annual salary of $65,733, according to the study.
Other cities to make the list include Seattle, Washington, ranking seventh with an average comfortable living salary of $178,520 and Boston, Massachusetts, ranking eighth, with an average comfortable living salary of $169,155.
Additional metros mentioned include, Washington, D.C., Miami, Florida, Portland, Oregon and Denver, Colorado – among others.
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