The cost of living in the United States varies widely from one city to another. Some cities make it easier to stretch a $100,000 salary, while others make it difficult to live comfortably on that income.
This disparity is caused by a mix of factors like housing costs, groceries, healthcare, and taxes. Let’s explore which U.S. cities offer good value for your money and which ones might leave you struggling despite a six-figure income.
Understanding the Cost of Living in the U.S.
When we talk about the “cost of living,” we’re referring to how much it costs to live in a particular city. This includes the price of things like rent, food, utilities, transportation, healthcare, and taxes. Cities where the cost of living is high will eat up a large portion of your income, leaving you with less money for savings or leisure.
The cost of living is especially important for people planning to move, retirees, or those looking for better job opportunities. A city with a lower cost of living can make a big difference in your lifestyle and financial freedom.
Cities Where $100,000 Goes the Furthest
If you live in a city with a lower cost of living, a $100,000 salary can give you more financial freedom. In these cities, you’ll be able to cover all your living expenses and still have room to save, invest, or spend on things you enjoy.
El Paso, Texas: The Best Place for $100,000
El Paso, Texas, is one of the top cities where $100,000 stretches the furthest. The median home price here is much lower than the national average, and the cost of living is 12% below the national norm. With no state income tax, residents of El Paso can keep more of their earnings.
In addition to affordable housing, other living expenses, including utilities and groceries, are also reasonably priced. This makes El Paso an attractive place for families, retirees, and young professionals looking to make the most of their income.
Oklahoma City, Oklahoma: Affordable and Comfortable
Oklahoma City offers great value for money, with a low cost of living and affordable housing. The average home price is just under $200,000, making it one of the more affordable places to buy a home in the country. With reasonable rent and utility costs, Oklahoma City stands out as a place where your money can go much further.
Other Affordable Cities for $100,000
Several other cities offer great value for a $100,000 salary. These include:
- Memphis, Tennessee: Known for its rich cultural history, Memphis offers affordable housing, groceries, and healthcare costs.
- Corpus Christi, Texas: A coastal city with lower living costs and access to beautiful beaches.
- San Antonio, Texas: Famous for its historic sites, San Antonio has a cost of living 10% below the national average.
These cities, along with El Paso and Oklahoma City, are great choices if you want to live comfortably without spending a large portion of your salary on rent or groceries.
Cities Where $100,000 Doesn’t Go Very Far
While many cities offer affordable living, others can drain your finances quickly, even with a $100,000 salary. These cities typically have high housing costs, expensive healthcare, and high taxes, all of which eat into your income.
Manhattan, New York: The Most Expensive City
Manhattan is by far the most expensive city in the U.S. Even with a $100,000 salary, residents are left with just $30,914 after paying for living expenses. Rent alone can take up most of your income, and groceries and healthcare costs are significantly higher than the national average. While Manhattan offers many job opportunities, those living here often find it hard to save or enjoy a comfortable lifestyle due to the high living costs.
San Francisco, California: A Tech Hub with a High Price Tag
San Francisco, California, is another city where $100,000 doesn’t go far. While the city is home to many tech jobs, the high cost of housing makes it a challenge to live here on a single income. After paying for rent, groceries, and taxes, residents are left with very little disposable income.
Other Expensive Cities for $100,000
If you’re considering moving to other big cities, be aware of the high costs of living in places like:
- Honolulu, Hawaii: Expensive housing and a high cost of living make Honolulu a difficult city to live in on $100,000.
- Los Angeles, California: Known for its entertainment industry, LA has high housing costs and taxes, making it hard to save money.
- Washington, D.C.: The capital city also has a high cost of living, with expensive rent and utilities.
These cities are not ideal if you want to make the most out of your salary. The high cost of living here means that even a $100,000 salary may not provide the comfort or financial freedom you might expect.
Cities with High Living Costs Despite a Good Median Income
Some cities have both high living costs and relatively high median incomes. In these places, you may earn a decent salary, but the cost of living can still make it difficult to save money or live comfortably. Here are a few cities with notable differences between living costs and median incomes:
Jackson, Wyoming
- Total cost of living: $190,371
- Household median income: $101,477
Jackson, Wyoming, has one of the highest costs of living in the U.S., despite the relatively average household median income. The combination of high housing costs and essential expenses makes it hard to live comfortably even with a decent salary.
Edwards, Colorado
- Total cost of living: $177,684
- Household median income: $89,399
In Edwards, Colorado, the total cost of living is much higher than the median income, creating a financial strain for residents. The high price of housing and overall expenses make it difficult for many to make ends meet without a significant additional income.
Steamboat Springs, Colorado
- Total cost of living: $139,995
- Household median income: $93,280
Steamboat Springs is another example where high living costs don’t match the median income. The cost of housing and other living expenses significantly outpaces the average salary in this area.
San Jose, California
- Total cost of living: $137,721
- Household median income: $136,010
In San Jose, the cost of living is almost equal to the median income. While you might expect to live comfortably on $100,000, the expenses here can quickly make that impossible.
Breckenridge, Colorado
- Total cost of living: $136,304
- Household median income: $129,481
Breckenridge is a ski town, and as expected, it comes with a higher cost of living, especially in terms of housing and general expenses.
Why Do These Differences Exist?
The large difference in living costs between cities is mainly due to factors like:
- Housing Prices: Cities like San Francisco and Manhattan have sky-high housing costs, both for renting and buying a home. In contrast, cities like El Paso and Oklahoma City have much more affordable housing options.
- Taxes: Some states, like Texas, don’t have a state income tax, which helps residents keep more of their earnings. Meanwhile, states like California and New York have high tax rates, further increasing the cost of living.
- Job Market and Income Levels: In cities with high-paying industries, such as tech in San Francisco, the cost of living can rise quickly. In contrast, smaller cities with lower wages may have more affordable living costs.
Conclusion: Choosing the Right City for Your Budget
When deciding where to live, it’s essential to consider the cost of living and how far your salary will stretch. Cities like El Paso and Oklahoma City offer great value for your money, while cities like Manhattan and San Francisco can quickly drain your finances, even with a six-figure income.
By understanding the cost of living and comparing cities, you can make an informed decision that will help you maintain a comfortable lifestyle while also saving money for the future.
This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.
Filza specializes in simplifying financial topics for everyday readers. Whether breaking down Canada’s tax guides or U.S. benefits like SNAP and VA Disability, Filza’s relatable writing style ensures readers feel confident and informed. Follow her insights on LinkedIn or reach out via email at shewrites.health@gmail.com.
