What does a living income mean? Economists and policymakers can’t agree, and many government guidelines are based on outdated or incomplete measures. The Consumer Price Index (CPI) is as reliable as federal minimum wage levels: not very. Creditnews Research decided to do something about it, and the result of their research is this list of America’s largest metros, ranked by minimum “living income” thresholds.
These thresholds cover the minimum amount of money needed for basic human needs in eight categories:
- Childcare
- Civic engagement
- Food
- Healthcare
- Housing
- Internet and mobile
- Transportation
- Other necessities.
In this scenario, basic needs are covered without public assistance, but there’s no money for left for discretionary spending such as eating out—and especially for savings or retirement accounts. These households are truly living paycheck to paycheck.
Creditnews’ research puts America’s affordability crisis in a whole new light.
Key Findings
The most expensive metros, where a family must earn at least $140,000 annually (an hourly wage of $33, with both parents working full-time) are:
- San Jose, California
- San Francisco, California
- Boston, Massachusetts
- Bridgeport, Connecticut
- Urban Honolulu, Hawaii
- San Diego, California
- New York, New York
- Seattle, Washington
- Oxnard, California
- Denver, Colorado
The least expensive metros, where a family must earn at least $87,000 annually ($20 an hour, with both parents working full-time), are:
- McAllen, Texas
- El Paso, Texas
- Jackson, Mississippi
- Little Rock, Arkansas
- Lakeland, Florida
- Augusta, Georgia
- Wichita, Kansas
- New Orleans, Louisiana
- Knoxville, Tennessee
- Deltona, Florida
Additional findings by Creditnews includes:
- In 85 of the top 100 cities, the average family must earn more than $100,000 just to get by. The nationwide income threshold is just under $75,000.
- The most expensive areas to cover basic needs are on the West Coast and Northeast. Here, basic living expenses mean families must earn $140,000 or more just to survive.
- The minimum income for a family is approximately 2.5 times higher than that of single adult households.
Metros are ranked by hourly wage and annual income thresholds for families. Single-adult thresholds slightly vary, but the discrepancy isn’t big enough for a separate ranking.
Most Expensive Metros
The following is some granular data on the most expensive metros to meet basic needs:
- San Jose-Sunnyvale-Santa Clara, California
- Annual income for a family of four to just get by: $167,271 (an hourly wage of $40.21 per hour per parent, with both parents working).
- Annual income for a single adult to just get by: $68,379.
- A family’s minimum income is approximately 2.45 times that of a single adult.
- San Francisco-Oakland-Berkeley, California
- Annual family income: $164,827 ($39.62 per hour per parent).
- Annual single income: $62,487.
- Family income threshold: roughly 2.64 times that of a single adult.
- Boston-Cambridge-Newton, Massachusets-New Hampshire
- Annual family income: $159,868 ($38.43 per hour per parent).
- Annual single income: $62,122.
- Family income threshold: roughly 2.57 times a single adult.
- Bridgeport-Stamford-Norwalk, Connecticut
- Annual family income: $158,925 ($38.20 per hour per parent).
- Annual single income: $61,393.
- Family income threshold: roughly 2.59 times a single adult.
- Urban Honolulu, Hawaii
- Annual family income: $149,753 ($36.00 per hour per parent).
- Annual single income: $59,695.
- Family income threshold: roughly 2.51 times a single adult.
- San Diego-Chula Vista-Carlsbad, California
- $144,744 ($34.79 per hour per parent).
- Annual single income: $58,320.
- Family income threshold: roughly 2.48 times a single adult.
- New York-Newark-Jersey City, New York-New Jersey-Pennsylvania
- Annual family income: $142,516 ($34.26 per hour per parent).
- Annual single income: $58,143.
- Family income threshold: roughly 2.45 times a single adult.
- Seattle-Tacoma-Bellevue, Washington
- Annual family income: $141,875 ($34.10 per hour per parent).
- Annual single income: $57,346.
- Family income threshold: roughly 2.47 times a single adult.
- Oxnard-Thousand Oaks-Ventura, California
- Annual family income: $140,351 ($33.74 per hour per parent).
- Annual single income: $56,243.
- Family income threshold: roughly 2.50 times a single adult.
- Denver-Aurora-Lakewood, Colorado
- Annual family income: $140,241 ($33.71 per hour per parent).
- Annual single income: $56,176.
- Family income threshold: roughly 2.50 times a single adult.
Least Expensive Metros
The following is some granular data on the least expensive metros to meet basic needs:
- McAllen-Edinburg-Mission, Texas
- Annual income for a family of four to just get by: $87,133 (an hourly wage of $20.95 per hour per parent, with both parents working).
- Annual income for a single adult to just get by: $37,632.
- A family’s minimum income is approximately 2.32 times that of a single adult.
- El Paso, Texas
- Annual family income: $90,239 ($21.69 per hour per parent).
- Annual single income: $37,727.
- Family income threshold: roughly 2.39 times a single adult.
- Jackson, Mississippi
- Annual family income: $93,124 ($22.39 per hour per parent).
- Annual single income: $38,745.
- Family income threshold: roughly 2.40 times a single adult.
- Little Rock-North Little Rock-Conway, Arkansas
- Annual family income: $93,682 ($22.52 per hour per parent).
- Annual single income: $38,933.
- Family income threshold: roughly $2,000.
- Lakeland-Winter Haven, Florida
- Annual family income: $94,024 ($22.60 per hour per parent).
- Annual single income: $39,691.
- Family income threshold: roughly 2.37 times a single adult.
- Augusta-Richmond County, Georga-South Carolina
- Annual family income: $95,441 ($22.94 per hour per parent).
- Annual single income: $40,172.
- Family income threshold: roughly 2.38 times a single adult.
- Wichita, Kansas
- Annual family income: $96,025 ($23.08 per hour per parent).
- Annual single income: $40,515.
- Family income threshold: roughly 2.37 times a single adult.
- New Orleans-Metairie, Louisiana
- Annual family income: $96,519 ($23.20 per hour per parent).
- Annual single income: $40,640.
- Family income threshold: roughly 2.37 times a single adult.
- Knoxville, Tennessee
- Annual family income: $96,954 ($23.31 per hour per parent).
- Annual single income: $40,892.
- Family income threshold: roughly 2.37 times a single adult.
- Deltona-Daytona Beach-Ormond Beach, Florida
- Annual family income: $97,025 ($23.32 per hour per parent).
- Annual single income: $40,929.
- Family income threshold: roughly 2.37 times a single adult.
Click here to read more on the Creditnews’ affordability report.
