The Income You Need to Live Comfortably in the 10 Most Expensive US Cities
Living the American dream comes with a hefty price tag in certain corners of the country. In some metros, you’d need a household income exceeding $200,000, which is more than double the national median salary. A study by GoBankingRates examined the 50 most populous cities using cost-of-living indexes, Zillow housing data, and the 50/30/20 budgeting rule to determine what ‘comfortable’ really means. Spoiler alert: steer clear of California.
San Jose, California
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Silicon Valley doesn’t mess around when it comes to housing costs. Average homes run over $1.5M. You’ll need $264,946 annually to live comfortably, and necessities alone devour $132,473 of your income. The tech giants headquartered in the region have created a concentration of wealth that pushes prices skyward. Even engineers pulling six figures can find themselves priced out of single-family homes.
San Francisco, California
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Living comfortably in San Francisco demands a household income of about $251,398 per year. The figure reflects an average single-family home value of $1,410,552, with housing dominating monthly expenses even for high earners. Groceries, transportation, and utilities all cost more than the national average. Tech salaries help explain how residents make it work, but even strong paychecks can feel stretched once mortgage payments and everyday costs add up.
San Diego, California
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Balboa Park and year-round sunshine make this city irresistible, but the sticker shock is real. The biotech industry has boomed in the region alongside tourism and the military presence. Housing averages $1,140,127 per home, pushing the comfortable living threshold to $206,353. Some families opt for longer commutes from inland areas such as Escondido or Chula Vista.
Los Angeles, California
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The Hollywood sign might symbolize dreams, but the reality involves serious financial calculations. We’re talking $194,920 annually for comfortable living, with single-family homes averaging $1,025,128. Residents include executives, tech workers in Santa Monica, and aspiring actors. Despite LA’s massive footprint, desirable neighborhoods near job centers command premium prices.
New York City, New York
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Despite the views of Central Park and proximity to Broadway, most residents deal with cramped, expensive apartments and grocery bills that sting. The Big Apple requires $184,420 to live comfortably, with the mean necessities costing $92,210 annually. Food, transportation, and taxes all add pressure, even as higher wages offset part of the burden. The city’s job diversity keeps demand high.
Long Beach, California
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Just south of Los Angeles, most people in Long Beach will need around $179,359 to live comfortably. At least they’d be closer to tourist attractions like The Queen Mary. California’s statewide housing challenges also affect locals here, meaning strict zoning laws and expensive construction keep housing supply tight. Some residents commute to higher-paying jobs in neighboring cities, accepting the traffic on the 405 in exchange for slightly lower housing costs.
Seattle, Washington
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Living here will mean proximity to the tech giant, Amazon. The company’s downtown towers house thousands of employees whose paychecks have transformed Seattle’s housing market significantly. Homes now average $941,803, and living comfortably means spending $178,520 annually. Pike Place Market still charms visitors, and high salaries help attract talent. Still, nearby neighborhoods have relatively high price tags reflecting the tech boom.
Boston, Massachusetts
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Historic preservation keeps Boston looking unique, but it also keeps housing supply tight. Biotech firms and teaching hospitals pack the metro with professionals earning six-figure salaries, while universities ensure constant demand for housing. Realtor.com data shows home buyers hunting in suburbs like Newton and Brookline partly because they’d need $169,155 to live comfortably in Boston. Single-family homes on average cost $839,566, and essentials alone mean spending $84,578 per year.
Oakland, California
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California makes it to the list once more, albeit for the last time. Most people in Oakland appreciate Jack London Square for its thriving arts venues, diverse food scenes, and vibrant neighborhoods. The state’s regulatory maze also affects development in Oakland, while proximity to San Francisco partly accounts for the average home value of $797,148. Transportation and food costs are high, yet buyers often accept smaller homes in exchange for access to the Bay Area.
Washington, D.C.
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The monuments are free to visit, but the irony isn’t lost on anyone house-hunting in the nation’s capital. Government work provides stable paychecks, and the lobbying industry ensures a steady stream of high earners bidding on inventory that spans only 68 square miles. Homes in D.C. proper average $749,377. Living comfortably requires a household income of $157,960, and essentials alone account for $78,980 of that figure.