In one-fourth of large US cities, a family can earn a six-figure salary and still feel broke.
According to a report by personal finance website LendingTree, in 25 of the top 100 metropolitan areas, average monthly spending on basic living expenses exceeds monthly income for a family of three earning $100,000.
A $100,000 salary “used to be a magic number that indicated that someone had made it financially. “That is clearly not the case anymore in much of the country,” Matt Schulz, chief consumer finance analyst at LendingTree, told USA Today.
“The fact that you can make six figures and be broke in so many of our largest cities, even before you factor in debt payments, is extremely concerning. Unfortunately, the situation is only likely to worsen.
The median household income in 2023 was $80,610, according to the US Census Bureau.
While a six-figure income exceeds the national average, a $100,000 salary is insufficient in some areas of the country.
A $100,000 income translates into monthly paychecks of $8,333, but many Americans have monthly expenses that exceed this amount.
LendingTree calculated expenses for a typical family of three by taking into account the average cost of renting a two-bedroom apartment, monthly child care costs, transportation costs, health insurance, food, entertainment, utilities, state and federal taxes, payroll taxes, and 401(k) contributions.
LendingTree subtracted each city’s monthly expenses from $8,333 to determine how much money the families had at the end of the month; in some cases, they were left with a negative figure.
For example, in San Francisco, the average monthly expense was $10,137.
This would leave residents earning $100,000 with a net monthly income of -$1,804.
Boston residents had a high average monthly expense of $9,946, resulting in a net monthly income of -$1,613.
San Jose, California, had the highest average monthly expenses, at $10,540.
According to Realtor.com, Atherton, a San Jose suburb, is located in one of the country’s wealthiest ZIP codes.
NBA star Steph Curry lives in Atherton, and a former Google CEO sold his home there in 2024 for a whopping $22.5 million.
Least Affordable Cities
Some popular US cities have monthly expenses exceeding a $100,000 income:
- San Francisco: Monthly expenses total $10,137, for a net monthly income of -$1,804
- Boston: Monthly expenses, $9,946; net monthly income, -$1,613
- Honolulu: Monthly expenses, $9,824; net monthly income, -$1,491
- Washington, D.C.: Monthly expenses, $9,767; net monthly income, -$1,434
- Seattle: Monthly expenses, $9,376; net monthly income, -$1,043
- New York: Monthly expenses: $9,077; net monthly income, -$744
- Denver: Monthly expenses, $8,963; net monthly income, -$630
- Baltimore: Monthly expenses, $8,842; net monthly income, -$509
- Portland, Oregon: Monthly expenses, $8,789; net monthly income, -$456
- Minneapolis: Monthly expenses, $8,650; net monthly income, -$317
- Hartford, Connecticut: Monthly expenses, $8,423; net monthly income, -$90
The median home listing price in Atherton is nearly $9 million, according to realtor.com.
The median household income is slightly less than $400,000, while the recommended household income is approximately $1.8 million.
COMFORTABLY WITHIN REACH
While popular metropolitan areas like San Francisco are naturally more expensive, a $100,000 salary in other parts of the country would suffice to cover monthly expenses and leave some money over.
LendingTree identified 75 large metropolitan areas with average monthly expenses of less than $8,333.
Cleveland, Ohio, for example, is reasonably priced for a household earning $100,000, with a net monthly income of $1,393 after monthly expenses are paid.
Louisville, Kentucky and Memphis, Tennessee were both affordable, with net monthly incomes of $1,281 and $1,272, respectively.
Most Affordable Cities
Some American cities are relatively affordable for families making $100,000:
- Cleveland, where total monthly expenses would leave a net monthly income of $1,393
- Louisville, Kentucky: Net monthly income, $1,281
- Memphis, Tennessee: Net monthly income, $1,272
- New Orleans: Net monthly income, $1,216
- Cincinnati: Net monthly income, $1,207
- Milwaukee: Net monthly income, $1,028
- Pittsburgh: Net monthly income, $1,025
- Indianapolis: Net monthly income, $922
- Detroit: Net monthly income, $885
- Houston: Net monthly income, $883
- Las Vegas: net monthly income, $835
- Nashville, Tennessee: Net monthly income, $751
The LendingTree analysis did not include debt payments like student loans or credit cards.
“If we had done that, the number of metros in which six-figure earners are still broke would be far larger,” said the report’s authors.
As housing costs rise, many Americans are turning to tiny homes as a more cost-effective alternative.
Amazon is selling a prefab tiny home for $7,599, complete with a bathroom, kitchen, and bedroom.
Furthermore, you can now purchase a tiny ranch home on Wayfair for $15,699, which includes a large porch and comes in four sizes.