Living in a major US city comes with its perks – vibrant culture, diverse communities, and endless opportunities. However, it also comes at a significant price tag, as revealed by a recent study conducted by researchers at SmartAsset.
The study delved into the income required to achieve a comfortable lifestyle in the nation's 99 largest metropolitan areas. Employing the widely recognized 50/30/20 rule, which allocates 50 per cent of income to basic living expenses, 30 per cent to discretionary spending, and 20 per cent for savings or debt payments, researchers sought to define what it means to live comfortably.
On average, an individual needs a hefty $96,500 annually to sustain comfort in a major U.S. city. But for families, the bar is set even higher. The study suggests that to support two adults and two children without the looming pressure of living paycheck to paycheck, the average combined income should be around $235,000.
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However, the costs vary drastically from city to city. Unsurprisingly, it takes the most money to live comfortably as a single person in the bustling metropolis of New York City, where an hourly wage of $66.62 or an annual salary of $138,570 is required to maintain a comfortable standard of living.
For families, the financial demands soar even higher. In six cities including San Francisco, San Jose, and New York City, a combined income exceeding $300,000 is needed to raise two children with enough financial security for needs, wants, and savings.
But amidst these staggering figures, there are pockets of affordability. The study identified the top 10 cities with the lowest salaries needed to live comfortably, with Houston, Texas, taking the lead. Here, a single adult needs an hourly wage of $36.10 or an annual salary of $75,088 to enjoy a comfortable lifestyle.
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On the other end of the spectrum, cities like New York City and San Jose demand astronomical figures to achieve the same level of comfort, underlining the stark contrast in the cost of living across different parts of the country.
Top 10 Cities With the Lowest Salaries Needed to Live Comfortably
Houston, Texas
Hourly wage needed for a single adult: $36.10
Annual salary needed for a single adult to live comfortably: $75,088
Combined salaries for two working adults with two children needed: $175,219
El Paso, Texas
Hourly wage needed for a single adult: $36.18
Annual salary needed for a single adult to live comfortably: $75,254
Combined salaries for two working adults with two children needed: $180,461
Lubbock, Texas
Hourly wage needed for a single adult: $36.24
Annual salary needed for a single adult to live comfortably: $75,379
Combined salaries for two working adults with two children needed: $181,043
Toledo, Ohio
Hourly wage needed for a single adult: $37.26
Annual salary needed for a single adult to live comfortably: $77,501
Combined salaries for two working adults with two children needed: $208,416
Laredo, Texas
Hourly wage needed for a single adult: $37.72
Annual salary needed for a single adult to live comfortably: $78,458
Combined salaries for two working adults with two children needed: $179,046
Milwaukee, Wisconsin
Hourly wage needed for a single adult: $38.30
Annual salary needed for a single adult to live comfortably: $79,664
Combined salaries for two working adults with two children needed: $237,952
Lexington, Kentucky
Hourly wage needed for a single adult: $38.46
Annual salary needed for a single adult to live comfortably: $79,997
Combined salaries for two working adults with two children needed: $196,102
Tulsa, Oklahoma
Hourly wage needed for a single adult: $38.98
Annual salary needed for a single adult to live comfortably: $81,078
Combined salaries for two working adults with two children needed: $199,430
Wichita, Kansas
Hourly wage needed for a single adult: $39.04
Annual salary needed for a single adult to live comfortably: $81,203
Combined salaries for two working adults with two children needed: $186,784
Cleveland, Ohio
Hourly wage needed for a single adult: $39.32
Annual salary needed for a single adult to live comfortably: $81,786
Combined salaries for two working adults with two children needed: $217,984
Top 10 Cities With the Highest Salaries Needed to Live Comfortably
New York City, New York
Hourly wage needed for a single adult: $66.62
Annual salary needed for a single adult to live comfortably: $138,570
Combined salaries for two working adults with two children needed: $318,406
San Jose, California
Hourly wage needed for a single adult: $65.74
Annual salary needed for a single adult to live comfortably: $136,739
Combined salaries for two working adults with two children needed: $334,547
Irvine, California
Hourly wage needed for a single adult: $60.96
Annual salary needed for a single adult to live comfortably: $126,797
Combined salaries for two working adults with two children needed: $291,450
Santa Ana, California
Hourly wage needed for a single adult: $60.96
Annual salary needed for a single adult to live comfortably: $126,797
Combined salaries for two working adults with two children needed: $291,450
Boston, Massachusetts
Hourly wage needed for a single adult: $60.08
Annual salary needed for a single adult to live comfortably: $124,966
Combined salaries for two working adults with two children needed: $319,738
San Diego, California
Hourly wage needed for a single adult: $59.04
Annual salary needed for a single adult to live comfortably: $122,803
Combined salaries for two working adults with two children needed: $289,453
Chula Vista, California
Hourly wage needed for a single adult: $59.04
Annual salary needed for a single adult to live comfortably: $122,803
Combined salaries for two working adults with two children needed: $289,453
San Francisco, California
Hourly wage needed for a single adult: $57.48
Annual salary needed for a single adult to live comfortably: $119,558
Combined salaries for two working adults with two children needed: $339,123
Seattle, Washington
Hourly wage needed for a single adult: $57.40
Annual salary needed for a single adult to live comfortably: $119,392
Combined salaries for two working adults with two children needed: $283,712
Oakland, California
Hourly wage needed for a single adult: $57.10
Annual salary needed for a single adult to live comfortably: $118,768
Combined salaries for two working adults with two children needed: $316,243
