Hard-hitting new data has revealed how much Americans need to earn to live comfortably in the country’s largest cities.
By analyzing data from the US Census, the Bureau of Labor Statistics and the Zillow housing market, GOBankingRates found that to afford living in the most expensive US cities, Americans need a salary of at least $125,000 .
Even in the most affordable city on the list, Detroit, residents still need an annual income of nearly $65,000 to live comfortably.
He study judged to “live comfortably” according to the 50/30/20 rule.
This is where 50 percent of a person’s income covers living costs, 30 percent is expendable, and 20 percent goes toward savings.
Your browser does not support iframes.
Of the eight cities where Americans need the highest salaries to live comfortably by this measure, six are located in California.
In San Jose, which is the most expensive city on the list, Americans need to earn a staggering salary of $265,926 to cover a cost of living of $132,963 a year, and have plenty of money to save and spend.
In San Francisco, locals need to earn at least $252,878, versus $207,332 in San Diego and $194,500 in Los Angeles.
Meanwhile, in Long Beach, Americans still need to earn $177,553 to live comfortably, or $171,898 in Oakland.
Other major and notoriously expensive cities, such as New York, Washington, DC, Boston and Miami, require an annual salary of at least $140,000 to live comfortably, GOBankingRates found.
According to the Bureau of Labor Statistics, the median salary in the United States is $59,228.
This is below the income needed to live comfortably in Detroit, which is the most affordable major city on the list of 50 compiled by GOBankingRates.
It is also well below other less expensive cities, such as Memphis, Indianapolis or Oklahoma City, where the annual cost of living is $37,605, but residents need a salary of $75,211 for a comfortable life.
The grim figures come as the cost of living has risen across the United States in recent years.
The cost of many essential items has skyrocketed, leaving households feeling the strain.
In San Jose, which is the most expensive city on the list, Americans need to earn a staggering salary of $265,926 to cover a cost of living of $132,963 a year, and have plenty of money to save and spend.
In San Francisco, locals need to earn at least $252,878 to live comfortably
The cost of many essential items has skyrocketed in the US in recent years, leaving households feeling the squeeze.
While the inflation rate has slowed since hitting a 40-year high of 9.1 percent in June 2022, it is still above the Federal Reserve’s 2 percent target.
The annual inflation rate was 2.5 percent according to the latest data in August, down from 2.9 percent in July.
But food prices have risen 20 percent in the past five years, according to Labor Department data.
Decades-high mortgage rates and record home prices mean the average home loan payment this year is also double what it was in 2000.
But mortgage rates have been falling in recent weeks following a huge interest rate cut by the Federal Reserve last month, which could provide some respite for potential home buyers.
The average 30-year fixed-rate mortgage is 6.12 percent according to the latest data from Freddie Mac on October 3.
