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The Income Needed to Live Comfortably in America's Priciest Cities

Living comfortably in some of the largest U.S. cities requires a household income exceeding $200,000, according to a recent GoBankingRates analysis. This figure is more than double the U.S. median household income of $83,730.

The study evaluated the 50 most populous U.S. cities using Sperling’s BestPlaces cost-of-living index, which compares local prices for essentials like housing, groceries, and transportation to the national average. The analysis adjusted Bureau of Labor Statistics spending data to account for local cost differences and incorporated Zillow home values with a 6.35% mortgage rate to estimate monthly homeowner payments. (Note: The study excluded renter housing costs.)

Using the 50/30/20 budgeting rule—where 50% of income covers necessities—the analysis doubled the income needed for essentials to determine a “comfortable” salary. High housing costs, the largest household expense, drive the income requirements in these cities.

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Top 10 U.S. Cities Requiring the Highest Income to Live Comfortably

  1. San Jose, California

    • Average single-family home value: $1,529,160

    • Income needed for necessities: $132,473

    • Income needed to live comfortably: $264,946

  2. San Francisco, California

    • Average single-family home value: $1,410,552

    • Income needed for necessities: $125,699

    • Income needed to live comfortably: $251,398

  3. San Diego, California

    • Average single-family home value: $1,140,127

    • Income needed for necessities: $103,176

    • Income needed to live comfortably: $206,353

  4. Los Angeles, California

    • Average single-family home value: $1,025,128

    • Income needed for necessities: $97,460

    • Income needed to live comfortably: $194,920

  5. New York City, New York

    • Average single-family home value: $846,342

    • Income needed for necessities: $92,210

    • Income needed to live comfortably: $184,420

  6. Long Beach, California

    • Average single-family home value: $919,269

    • Income needed for necessities: $89,679

    • Income needed to live comfortably: $179,359

  7. Seattle, Washington

    • Average single-family home value: $941,803

    • Income needed for necessities: $89,260

    • Income needed to live comfortably: $178,520

  8. Boston, Massachusetts

    • Average single-family home value: $839,566

    • Income needed for necessities: $84,578

    • Income needed to live comfortably: $169,155

  9. Oakland, California

    • Average single-family home value: $797,148

    • Income needed for necessities: $81,779

    • Income needed to live comfortably: $163,559

  10. Washington, D.C.

    • Average single-family home value: $749,377

    • Income needed for necessities: $78,980

    • Income needed to live comfortably: $157,960

Why These Cities Are So Expensive

The cities listed have home prices significantly above the national average of $363,932, per Zillow. San Jose’s average home value, for instance, is over four times the national average. California dominates the list due to restrictive zoning, high construction costs, and strong demand from high-income workers. Other metros like New York, Seattle, and Boston face similar pressures, with limited housing supply and competition from high earners inflating prices.

Elevated home prices also increase rents, as more residents remain in the rental market or move to suburbs when homeownership is out of reach. While higher salaries in these cities help offset costs, the financial strain remains significant. Realtor.com’s “Hottest ZIP Codes” list highlights that affordable suburbs near expensive metros like Boston and New York are increasingly popular.

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Nothing in this newsletter is financial advice. Always do your own research and think for yourself.

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