The 25 U.S. cities where a $100,000 salary still isn’t enough to get by

Reaching a six-figure salary used to be the ultimate financial goal for many Americans, but in today’s economy, it may not be enough to cover basic expenses in certain big cities. A recent analysis by LendingTree revealed that in one out of four large metropolitan areas in the United States, a family of three with a household income of $100,000 would still struggle to make ends meet.

The study took into account various spending categories that a typical family of three might face, such as housing and childcare costs, and found that in 25 of the 100 largest U.S. cities, monthly expenditures outweighed net monthly income for a $100,000 salary. This highlights the growing disparity between income levels and the cost of living in many urban centers across the country.

Cities like San Jose, San Francisco, and Boston were among the hardest places to get by on a $100,000 salary, largely due to high housing and transportation costs. Interestingly, most of the cities where a $100,000 salary falls short are located on the West or East Coasts, with California metro areas dominating the list.

On the other hand, there are cities where a $100,000 salary still provides a comfortable lifestyle for a family of three. Places like McAllen, Texas, Little Rock, Arkansas, and El Paso, Texas, offer more financial breathing room, with residents having money left over after covering basic expenses.

For those struggling to make ends meet in high-cost cities, LendingTree suggests ways to mitigate the impact, such as staying in your rental longer, building up emergency savings, or reducing interest rates. It’s clear that while a six-figure salary was once seen as a mark of success, it may no longer guarantee financial stability in today’s economy.

As consumer confidence wanes and inflation continues to rise, it’s important for families to carefully consider their financial situation and explore ways to make their income stretch further. By understanding the unique challenges of their city and taking proactive steps to manage expenses, families can navigate the financial pressures of living in a high-cost urban environment.