Living in the United States’ priciest cities goes hand-in-hand with a household income well in excess of the nation’s nationwide median of $83,730. GoBankingRates–CNBC research discovered the 10 most expensive American cities enjoy incomes ranging between about $158,000 and well over $265,000 to live a “comfortable” life—where expenses account for no more than 50% of income and the remainder covers discretionary income and savings.
1. San Jose, California: $264,946
The largest city in Silicon Valley rules the nation. With a typical home price four times the national median, San Jose citizens need to earn about $264,946 per year just to have their housing, transportation, food, and other necessities eat up no more than half of their salary.
2. San Francisco, California: $251,398
The Financial District, tech hub, and steep rent costs propel San Francisco into the second rank. The annual salary of $251,398 is barely enough to pay for 50% of area living costs, with very little room left for saving or discretionary expenses.
3. San Diego, California: $206,353
Renowned for its beaches and biotech industry, San Diego requires a family income of about $206,353. While the housing is relatively lower than it is in the Bay Area, the total cost of living in the area—particularly health care and utilities—remains some of the highest in the country.
4. Los Angeles, California: $194,920
Covering entertainment, tourism, and international trade, Los Angeles is nearly $195,000 annually to enjoy life. Rising rent in desirable places like Santa Monica and Hollywood push this figure up.
5. New York, New York: $184,420
Manhattan and the boroughs remain centers of finance and culture—and among the priciest places to live. A household income of $184,420 barely sustains necessary expenditures at 50% of income in this world city.
6. Long Beach, California: $179,359
Too often overshadowed by its larger cousins, Long Beach still comes in at number six. It takes a yearly salary of $179,359 to make sure rent and mortgage payments, transportation, and miscellaneous expenses don’t take up more than half of total income.
7. Seattle, Washington: $178,520
Where Amazon, Microsoft, and a startup tech sector resides, Seattle needs $178,520 per family to survive. Upscale coffee culture, increasing rents, and high property taxes all contribute to Seattle’s expensive cost of living.
8. Boston, Massachusetts: $169,155
With leading universities, finance, and biotech, Boston requires a household income of $169,155 annually. Historic brownstones and tight supply in neighborhoods like Back Bay and Beacon Hill maintain high housing costs.
9. Oakland, California: $163,559
Located just across the Bay from San Francisco, Oakland has witnessed explosive growth in rent recently. To be able to afford living here costs $163,559 per year, both to compensate for housing demand spillover and increasing local amenities.
10. Washington, D.C.: $157,960
The nation’s capital city, government, and professional service sectors fill out the top 10. A $157,960 annual salary accommodates daily commutes, security-clearance charges, and supermarket bills above the mean to remain within an affordable budget segment.
Even in the more city economies that have higher average incomes, the residents are faced with the reality that it takes earning a six-figure income to have little remaining to save after housing, transportation, and other expenses are met. These figures point to the gap between median incomes and regional costs of living in the best cities in America.
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