A new analysis reveals that earning $100,000 a year is no longer enough to cover basic living expenses in many major U.S. cities, including Los Angeles and San Francisco, where families are falling into a cost of living deficit of over $1,200 per month.
According to a study by LendingTree, one in four of the 100 largest metropolitan areas in the country showed that a three-person household earning $100,000 annually cannot meet basic expenses. The study calculated average monthly expenditures for a family of three—covering rent for a two-bedroom apartment, childcare, groceries, health insurance, and other essentials—and subtracted these from the monthly income of $8,333 to determine net affordability.
Deficit Cities Top the List for Cost Burden
In cities like San Jose, families earning $100,000 face the steepest financial shortfall, with monthly expenses exceeding income by $2,207. San Francisco follows with a $1,804 deficit, and Boston with $1,613. Los Angeles ranks 7th, where families run a $1,254 monthly deficit, and San Diego comes in 8th, with a $1,248 shortfall.
In total, 25 of the top 100 cities had monthly essential expenses that outpaced the $100K income threshold, especially in coastal regions. All ten of California’s largest cities ranked within the top 25 most unaffordable cities.
Middle-Class Stability Under Pressure
Matt Schulz, Chief Credit Analyst at LendingTree, noted that while a $100K salary once signaled middle-class stability, it is no longer sufficient in many parts of the U.S. “This study doesn’t even include debt repayment, which means the real situation is likely worse,” he said, emphasizing the need for strong savings and emergency fund strategies.
Cities in New York, Massachusetts, Connecticut, and Colorado also made the list, highlighting the ongoing financial pressures in both East and West Coast urban centers.
Cities Without a Cost of Living Deficit
Not all cities are facing deficits. McAllen, Texas, located near the Mexico border, emerged as the most affordable city in the ranking, where a $100K income leaves families with a monthly surplus of $1,770.
Experts advise that cost disparities stem largely from regional variations in housing and transportation. They recommend long-term leases and leveraging low-interest loans as possible ways to ease financial pressure.
BY EUNYOUNG LEE [lee.eunyoung6@koreadaily.com]
