Minneapolis Ranked As The 10th Least Affordable City For Those Making Six Figures
MINNEAPOLIS (WCCO) -- You'd think people who make more than $100,000 each year would have few problems, but it depends on where they live. Families making six figures still struggle to make ends meet in specific cities.
Minneapolis places as the 10th least affordable city to live for six-figure families.
MagnifyMoney did a study based on data from the U.S. Department of Housing and Urban Development (HUD's) Location Affordability Index, and off of a methodology with the hypothetical family earning $100,000. The goal was to see which cities with families earning $100,000 a year have the least and most money left at the end of the month after expenses are paid.
According to MagnifyMoney, in seven of the reviewed 100 metro areas, the average professional couple spends more than $100,000 on the basics.
Families in San Jose, California were found to have $1,046 in disposable income each month, while those in New York City have about $65.
Minneapolis families that make six figures fall around having an extra $149 after expenses each month.
What eats up the most expenses is housing, with Minneapolis averaging at $1,953 a month. Following housing are transportation and childcare.
Families in Minneapolis spend around $1,342 for transportation expenses, and $922 for childcare.
The best city to live in for those making six-figures is McAllen, Texas. According to MagnifyMoney, families there still average $1,795 left over each month.
The reason for this is low cost of housing, and the lack of a state income tax. Seven out of the ten top cities have no state income tax, allowing families an extra $200 to $400.
MagnifyMoney shows and states that "for the most part, the percentage of the population that makes over $100,000 in these cities inversely correlates with the average amount of disposable income those families have".