The 25 U.S. cities where a $100,000 salary still isn't enough to get by
Reaching the six-figure salary threshold may be considered a financial victory for many Americans, but in a many big U.S. cities the once aspirational milestone just doesn't cut it anymore.
In one out of four large metro areas in the United States, a family of three with a household income of $100,000 will still struggle to get by, a LendingTree analysis reveals. That's a stark realization for many Americans, who continue to face rising household expenses on everything from a dozen eggs to a bag of coffee. The average median household income in then U.S. was $80,610 in 2023, according to the most recent estimate from the Census Bureau.
"For generations of Americans, $100,000 has long been a magic number. It has been seen as a level of yearly earnings that says: You've made it. You're successful," according to the report. "However, that has changed dramatically in many of the nation's biggest metros. In 25 of the 100 largest metros in this country, a six-figure household income isn't enough to handle the basics."
In determining the metro areas where a $100,000 salary wouldn't stretch far enough, LendingTree considered eight different spending categories a typical family of three might face — such as two-bedroom apartment and infant daycare — and then subtracted the total cost from the $8,333 in monthly income the family would be earning on a salary of $100,000. That left a slew of large metro areas, from Los Angeles to New York, with negative monthly income estimates.
In 25 of the 100 largest U.S. cities LendingTree looked at for its report, researchers found that monthly expenditures – which ranged from food to childcare and health insurance costs – outweighed net monthly income. The analysis didn't factor in debt payments.
"It's a rough time out there. The fact that you can make six figures in many, many cities across this country and still be broke, even before you factor in debt payments, is scary," said Matt Schulz, chief consumer finance analyst at LendingTree and author of the study. "That's the reality for many families today, though, and unfortunately, there's not much reason to think things are going to improve anytime soon. That means that families are going to be forced to make some tough decisions and real sacrifices to get by."
The study comes at a time when consumer confidence has fallen to its lowest levels since the pandemic, as Americans weather a period of economic uncertainty amid the Trump administration's tariff rollout. Americans expect long-term inflation to reach 4.4%, up from 4.1% last month.
Read on to see how your city ranked.
Where is it hardest to get by on $100,000?
In San Jose, the heart of California's pricey Silicon Valley, a family of three with household income of $100,000 a year would find themselves more than $2,000 short every month after covering basic expenses. Researchers say this is attributable to disproportionately high housing and transportation costs. Trailing San Jose are San Francisco and Boston which are the second and third hardest places, respectively, to get by on a $100,000 annual salary.
Notably, the lion's share of locations where family breadwinners making $100,000 might still end up broke were cities on the West or East Coasts. California metro hubs figured prominently on the list, with all 10 of the state's largest cities among the top 25. Colorado, Connecticut, Massachusetts and New York also had multiple metro areas included on the list.
Which cities were the most affordable for a family making $100,000?
In 1 in 3 cities, however, a $100,000 salary "is still magical," even for a family of three. Earners in these areas could still pocket $1,000 or more each month after paying basic expenses, LendingTree found.
McAllen, Texas, located on the U.S. - Mexico border, came in at the top for places where a $100,000 salary will give you the biggest bang for your buck. Residents there would have $1,770 left over after subtracting money for their monthly expenditures. Close behind McAllen are Little Rock, Arkansas and El Paso, Texas, according to the report.
For those facing stubborn costs of living, LendingTree says there are still ways to mitigate the impact whether it's by staying in your rental longer or reducing the interest rate you're paying.
Schulz's advice for consumers: Build your emergency fund.
"Even a small emergency fund can help firm up your financial foundation. It means that your next big unexpected expense won't necessarily have to go right on to your credit card," he told CBS MoneyWatch in an email. "Plus, online high-yield savings accounts are still offering some of the best returns in years, even though they're down from last year's highs."
