How much money family of 4 needs to live comfortably in U.S. cities

How much money family of 4 needs to live comfortably in U.S. cities

The income a family of 4 needs to live comfortably in 20 major U.S. cities

Mike Winters

cnbc.com

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A family of four needs to make more than $275,000 to live comfortably in some of the most expensive U.S. cities, a recent SmartAsset analysis reveals.

“Comfortable” is defined as the income needed to cover a 50/30/20 budget for a family of two adults and two kids. This budget assumes that 50% of the monthly income can pay for necessities like housing and utility costs, 30% can cover discretionary spending and 20% can be set aside for savings or investments.

SmartAsset extrapolated the income needed for a 50/30/20 budget based on the cost of necessities, using data from the MIT Living Wage Calculator.

Here’s a look how much income a family of four needs to live comfortably in the 20 most expensive U.S. cities: 

1. San Francisco: $339,123
2. San Jose, California: $334,547
3. Boston: $319,738
4. Arlington, Virginia: $318,573
5. New York City: $318,406
6. Oakland, California: $316,243
7. Urban Honolulu, Hawaii: $299,520
8. Irvine, California: $291,450
9. Santa Ana, California: $291,450
10. Portland, Oregon: $289,786
11. San Diego: $289,453
12. Chula Vista, California: $289,453
13. Newark, New Jersey: $285,043
14. Jersey City, New Jersey: $285,043
15. Seattle: $283,712
16. Aurora, Colorado: $280,467
17. Long Beach, California: $280,218
18. Anaheim, California: $280,218
19. Los Angeles: $276,557
20. Washington, D.C.: $275,642

San Francisco is the most expensive overall, with an income of $339,123 needed for a family of four. That’s followed by other cities known for having notoriously expensive housing costs, including Boston, New York City, Honolulu and Los Angeles.

In California, homes are about twice as expensive as the typical U.S. home, according to the Legislative Analyst’s Office, a nonpartisan government agency in that state. The state also has the fourth-highest cost of living in the U.S., based on 2023 Council for Community & Economic Research survey data.

Out of all 99 cities SmartAsset examined, a family of four would need a median of $226,886 to live comfortably. In Houston, the income needed drops to $175,219 — the lowest of all cities examined. But that’s still higher than the median family income in the U.S. of $92,750, according to the most recent U.S. Census bureau data available.

While employers in these high-cost cities tend to offer higher-than-average salaries as a way to attract and retain talent, housing costs can make it difficult to maintain a 50/30/20 budget.

And in large cities, housing costs often exceed 30% of a household income, leaving little room for other necessities like utilities, food and transportation. To make ends meet, families might skip out on homeownership, owning a vehicle or discretionary purchases.

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The 15 best—and worst—US cities for young, growing families

Anna Hecht

cnbc.com

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City life is expensive, especially when raising a family. It’s much more doable, though, if you can nail down which city suits your budget best.

Porch, a website that connects homeowners to local home improvement contractors, narrowed down the best cities for young families using data from the U.S. Census Bureau, review site Yelp and online real estate database Zillow. Porch ranked each city based on the number of millennials living there, child day care availability and rental housing options.

Source: Porch

Out of the 47 cities ranked, these are the top 10 most family-friendly in the U.S.

1. Seattle, Washington

• No. 4 for percentage of millennial residents
• No. 6 for one- and two-bedroom rental availability
• No. 11 for day care availability

2. Portland, Oregon

• No. 14 for percentage of millennial residents
• No. 7 for one- and two-bedroom rental availability
• No. 6 for day care availability

3. Baltimore, Maryland

• No. 24 for percentage of millennial residents
• No. 4 for one- and two-bedroom rental availability
• No. 8 for day care availability

4. New Orleans, Louisiana

• No. 13 for percentage of millennial residents
• No. 15 for one- and two-bedroom rental availability
• No. 9 for day care availability

5. Austin, Texas

• No. 1 for percentage of millennial residents
• No. 36 for one- and two-bedroom rental availability
• No. 4 for day care availability

6. Washington D.C.

• No. 10 for percentage of millennial residents
• No. 31 for one- and two-bedroom rental availability
• No. 5 for day care availability

7. San Francisco, California

• No. 6 for percentage of millennial residents
• No. 45 for one- and two-bedroom rental availability
• No. 1 for day care availability

8. San Diego, California

• No. 3 for percentage of millennial residents
• No. 44 for one- and two-bedroom rental availability
• No. 7 for day care availability

9. San Jose, California

• No. 7 for percentage of millennial residents
• No. 46 for one- and two-bedroom rental availability
• No. 2 for day care availability

10. TIE: Columbus, Ohio

• No. 8 for percentage of millennial residents
• No. 26 for one- and two-bedroom rental availability
• No. 25 for day care availability.

10. TIE: Jacksonville, Florida

• No. 26 for percentage of millennial residents
• No. 9 for one- and two-bedroom rental availability
• No. 24 for day care availability

10. TIE: Nashville, Tennessee

• No. 15 for percentage of millennial residents
• No. 10 for one- and two-bedroom rental availability
• No. 34 for day care availability

The worst U.S. cities for young, growing families

However, several cities lacked a large population of millennials, children’s day care services and one- or two-bedroom housing options. The five least family-friendly places according to Porch. are

1. Detroit, Michigan;
2. Miami, Florida; 
3. Dallas, Texas; 
4. Providence, Rhode Island; and 
5. Hartford, Connecticut,

Detroit earned the bottom spot on the list due to a lack of available child care, a low population of millennials and high-priced housing, the report says. Additionally, Detroit’s population has been on the decline for decades, and given the city’s history of economic issues, it’s become known as a difficult place to settle down and plant roots.

Why where you choose to live matters

When deciding where to settle down, it’s also important to consider your annual salary and whether it will be enough to sustain your lifestyle in certain cities.

The median income for middle-class U.S. households was $78,442 as of 2016, according to data from the Pew Research Center. However, in some major metropolitan areas, such as New York and San Francisco, raising a family can require hundreds of thousands of dollars per year.

One way to determine whether a city fits your budget is the 50/30/20 rule, in which 50% of your income goes to necessities such as rent, gas, utilities, transportation, healthcare and groceries, 30% goes to fun and 20% is put in savings. If a location’s cost of living pushes your budget outside of those boundaries, it might not be the best place for your family. 

Another way to figure out if you can afford to live in a certain city is to use an online calculator, such as NerdWallet’s cost of living calculator. With this tool, you can quickly compare various costs across different cities and better understand how much you’d need to earn in order to live well in a new place.

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Don’t miss: This map shows how much money a single person needs to earn to get by in every US state

Salary Needed to Live Comfortably – 2024 Study

Jaclyn DeJohn

smartasset.com

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While cost of living premiums and inflation metrics capture the price increases in goods and services, they do not necessarily account for all the additional costs needed to live comfortably – such as a buffer from the stress of living paycheck to paycheck.

The 50/30/20 budget recommends that for sustainable comfort, 50% of your salary should be allocated to your needs, such as housing, groceries and transportation; 30% toward wants like entertainment and hobbies; and 20% toward paying off debt, saving or investing. Applying the local cost of necessities and taxes to this rule, we can derive the pre-tax salary needed to live comfortably in 99 U.S. cities.

Key Findings

• On average, an individual needs $96,500 for sustainable comfort in a major U.S. city. This includes being able to pay off debt and invest for the future. It’s even more expensive for families, who need to make an average combined income of about $235,000 to support two adults and two children without the pressure of living paycheck to paycheck.
• A family must make over $300k to raise two kids comfortably in six cities. Two working adults need to make a particularly high combined income in 
• San Francisco ($339,123); 
• San Jose ($334,547); 
• Boston ($319,738); 
• Arlington, VA ($318,573); 
• New York City ($318,406); and 
• Oakland, CA ($316,243) 
• to raise two children with enough money for needs, wants and savings.
• It takes the most money to live comfortably as a single person in New York City. This breaks down to $66.62 in hourly wages, or an annual salary of $138,570. To cover necessities as a single person in New York City, you’ll need an estimated $70,000 in wages. 

Top 10 Cities With the Lowest Salaries Needed to Live Comfortably

1. Houston, Texas
Hourly wage needed for a single adult: $36.10
Annual salary needed for a single adult to live comfortably: $75,088
Combined salaries for two working adults with two children needed: $175,219

2. El Paso, Texas
Hourly wage needed for a single adult: $36.18
Annual salary needed for a single adult to live comfortably: $75,254
Combined salaries for two working adults with two children needed: $180,461

3. Lubbock, Texas
Hourly wage needed for a single adult: $36.24
Annual salary needed for a single adult to live comfortably: $75,379
Combined salaries for two working adults with two children needed: $181,043

4. Toledo, Ohio
Hourly wage needed for a single adult: $37.26
Annual salary needed for a single adult to live comfortably: $77,501
Combined salaries for two working adults with two children needed: $208,416

5. Laredo, Texas
Hourly wage needed for a single adult: $37.72
Annual salary needed for a single adult to live comfortably: $78,458
Combined salaries for two working adults with two children needed: $179,046

6. Milwaukee, Wisconsin
Hourly wage needed for a single adult: $38.30
Annual salary needed for a single adult to live comfortably: $79,664
Combined salaries for two working adults with two children needed: $237,952

7. Lexington, Kentucky
Hourly wage needed for a single adult: $38.46
Annual salary needed for a single adult to live comfortably: $79,997
Combined salaries for two working adults with two children needed: $196,102

8. Tulsa, Oklahoma
Hourly wage needed for a single adult: $38.98
Annual salary needed for a single adult to live comfortably: $81,078
Combined salaries for two working adults with two children needed: $199,430

9. Wichita, Kansas
Hourly wage needed for a single adult: $39.04
Annual salary needed for a single adult to live comfortably: $81,203
Combined salaries for two working adults with two children needed: $186,784

10. Cleveland, Ohio
Hourly wage needed for a single adult: $39.32
Annual salary needed for a single adult to live comfortably: $81,786
Combined salaries for two working adults with two children needed: $217,984

Top 10 Cities With the Highest Salaries Needed to Live Comfortably

1. New York City, New York
Hourly wage needed for a single adult: $66.62
Annual salary needed for a single adult to live comfortably: $138,570
Combined salaries for two working adults with two children needed: $318,406

2. San Jose, California
Hourly wage needed for a single adult: $65.74
Annual salary needed for a single adult to live comfortably: $136,739
Combined salaries for two working adults with two children needed: $334,547

3. Irvine, California
Hourly wage needed for a single adult: $60.96
Annual salary needed for a single adult to live comfortably: $126,797
Combined salaries for two working adults with two children needed: $291,450

4. Santa Ana, California
Hourly wage needed for a single adult: $60.96
Annual salary needed for a single adult to live comfortably: $126,797
Combined salaries for two working adults with two children needed: $291,450

5. Boston, Massachusetts
Hourly wage needed for a single adult: $60.08
Annual salary needed for a single adult to live comfortably: $124,966
Combined salaries for two working adults with two children needed: $319,738

6. San Diego, California
Hourly wage needed for a single adult: $59.04
Annual salary needed for a single adult to live comfortably: $122,803
Combined salaries for two working adults with two children needed: $289,453

7. Chula Vista, California
Hourly wage needed for a single adult: $59.04
Annual salary needed for a single adult to live comfortably: $122,803
Combined salaries for two working adults with two children needed: $289,453

8. San Francisco, California
Hourly wage needed for a single adult: $57.48
Annual salary needed for a single adult to live comfortably: $119,558
Combined salaries for two working adults with two children needed: $339,123

9. Seattle, Washington
Hourly wage needed for a single adult: $57.40
Annual salary needed for a single adult to live comfortably: $119,392
Combined salaries for two working adults with two children needed: $283,712

10. Oakland, California
Hourly wage needed for a single adult: $57.10
Annual salary needed for a single adult to live comfortably: $118,768
Combined salaries for two working adults with two children needed: $316,243

Data and Methodology

SmartAsset used MIT Living Wage Calculator data to gather the basic cost of living for an individual with no children and for two working adults with two children. Data includes cost of necessities including housing, food, transportation and income taxes. It was last updated to reflect the most recent data available on Feb. 14, 2024.

Applying these costs to the 50/30/20 budget for 99 of the largest U.S. cities, MIT’s living wage is assumed to cover needs (i.e. 50% of one’s budget). From there the total wage was extrapolated for individuals and families to spend 30% of the total on wants and 20% on savings or debt payments.

Questions about our study? Contact us at press@smartasset.com

Living Wage Calculator - Living Wage Calculation for California

livingwage.mit.edu

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The living wage shown is the hourly rate that an individual in a household must earn to support themselves and/or their family, working full-time, or 2080 hours per year. The tables below provide living wage estimates for individuals and households with one or two working adults and zero to three children. In households with two working adults, all hourly values reflect what one working adult requires to earn to meet their families’ basic needs, assuming the other adult also earns the same.

The poverty wage and state minimum wage are for reference purposes. Poverty wage estimates come from the Department of Health and Human Services’ Poverty Guidelines for 2024 and have been converted from an annual value to an hourly wage for ease of comparison. The state minimum wage data is sourced from the Labor Law Center and includes the minimum wage in a given state as of January of that year.

For further detail, please reference the Methodology page. The data on this page was last updated on February 14, 2024.

	1 ADULT				2 ADULTS (1 WORKING)				2 ADULTS (BOTH WORKING)
	0 Children	1 Child	2 Children	3 Children	0 Children	1 Child	2 Children	3 Children	0 Children	1 Child	2 Children	3 Children
Living Wage	$27.32	$47.96	$61.58	$82.16	$36.35	$44.11	$49.10	$54.51	$18.17	$26.21	$33.26	$40.24
Poverty Wage	$7.24	$9.83	$12.41	$15.00	$9.83	$12.41	$15.00	$17.59	$4.91	$6.21	$7.50	$8.79
Minimum Wage	$16.00	$16.00	$16.00	$16.00	$16.00	$16.00	$16.00	$16.00	$16.00	$16.00	$16.00	$16.00

Typical Expenses

The table below shows the costs of each basic need that go into estimating the living wage. Like with the living wage, their values vary by location and family size.

	1 ADULT				2 ADULTS (1 WORKING)				2 ADULTS (BOTH WORKING)
	0 Children	1 Child	2 Children	3 Children	0 Children	1 Child	2 Children	3 Children	0 Children	1 Child	2 Children	3 Children
Food	$4,508	$6,645	$9,967	$13,247	$8,264	$10,287	$13,248	$16,153	$8,264	$10,287	$13,248	$16,153
Child Care	$0	$14,433	$28,866	$41,020	$0	$0	$0	$0	$0	$14,433	$28,866	$41,020
Medical	$2,603	$8,317	$8,205	$8,668	$5,886	$8,205	$8,668	$8,263	$5,886	$8,205	$8,668	$8,263
Housing	$21,079	$28,944	$28,944	$38,263	$23,371	$28,944	$28,944	$38,263	$23,371	$28,944	$28,944	$38,263
Transportation	$10,665	$12,343	$15,548	$17,890	$12,343	$15,548	$17,890	$17,869	$12,343	$15,548	$17,890	$17,869
Civic	$3,032	$5,335	$6,715	$7,776	$5,335	$6,715	$7,776	$7,269	$5,335	$6,715	$7,776	$7,269
Internet & Mobile	$1,538	$1,538	$1,538	$1,538	$2,133	$2,133	$2,133	$2,133	$2,133	$2,133	$2,133	$2,133
Other	$4,739	$8,459	$8,994	$12,431	$8,459	$8,994	$12,431	$11,950	$8,459	$8,994	$12,431	$11,950
Required annual income after taxes	$48,163	$86,013	$108,776	$140,833	$65,790	$80,825	$91,090	$101,899	$65,790	$95,258	$119,956	$142,920
Annual taxes	$8,661	$13,750	$19,315	$30,062	$9,812	$10,934	$11,032	$11,488	$9,812	$13,785	$18,401	$24,496
Required annual income before taxes	$56,825	$99,763	$128,091	$170,895	$75,602	$91,759	$102,122	$113,388	$75,602	$109,043	$138,357	$167,415

Typical Annual Salaries

The average annual salaries for various occupations in the table below comes from the latest state-level data from the Bureau of Labor Statistics’ Occupational Employment and Wage Estimates. When available, this data is specific to a given metro area.

Occupational Area	Typical Annual Salary
Management	$155,120
Business & Financial Operations	$94,210
Computer & Mathematical	$143,670
Architecture & Engineering	$116,250
Life, Physical, & Social Science	$97,210
Community & Social Service	$65,450
Legal	$153,910
Education, Training, & Library	$75,880
Arts, Design, Entertainment, Sports, & Media	$107,330
Healthcare Practitioners & Technical	$119,400
Healthcare Support	$37,760
Protective Service	$64,790
Food Preparation & Serving Related	$37,220
Building & Grounds Cleaning & Maintenance	$41,940
Personal Care & Service	$42,080
Sales & Related	$58,040
Office & Administrative Support	$52,170
Farming, Fishing, & Forestry	$36,710
Construction & Extraction	$69,630
Installation, Maintenance, & Repair	$63,170
Production	$48,670
Transportation & Material Moving	$46,880