Six-figure income falls short of basic expenses in 25 major US metros, study finds

In a quarter of America’s largest metropolitan areas, families earning $100,000 annually cannot cover their basic monthly expenses, according to a new LendingTree analysis released Monday.

The study found that a family of three with a six-figure income would still face a monthly deficit in 25 of the nation’s 100 largest metro areas after paying for essentials like housing, child care and transportation.

“In much of America, a six-figure salary still leaves you and your family broke, even before you put a cent toward paying down debt,” the report stated.

San Jose, California, topped the list of metros where $100,000 incomes fall shortest, with families facing a monthly deficit of $2,207 after covering basic expenses. The Silicon Valley hub has the highest housing costs among areas analyzed, with two-bedroom rentals averaging $2,881 monthly, and the steepest transportation costs at $1,586 per month.

San Francisco and Boston followed closely, with families in those cities facing monthly shortfalls of $1,804 and $1,613 respectively.

California metros hit hardest

All ten California metropolitan areas included in the nation’s 100 largest appeared on the list of places where six-figure incomes fail to cover basics. Other states with multiple metros in deficit territory included Connecticut with three, while Colorado, Massachusetts and New York each had two.

The LendingTree analysis didn’t factor in debt payments, which would likely increase the number of metros where $100,000 earners struggle financially.

Regional affordability variations

In stark contrast, McAllen, Texas emerged as the most affordable major metro area, where families earning $100,000 would have $1,770 left over monthly after covering essential expenses. Little Rock, Arkansas and El Paso, Texas followed closely behind.

Ohio dominated the affordability rankings with four metros — Toledo, Dayton, Cleveland and Akron — among the ten most budget-friendly major population centers.

Study methodology

Researchers based their calculations on a family of three with an annual income of $100,000 before taxes. Basic expenses included housing (two-bedroom rental), child care (center-based infant care), transportation, health insurance premiums, food, entertainment, utilities, taxes and a monthly $500 contribution to a 401(k) retirement account.

The findings highlight growing regional economic disparities and the erosion of purchasing power for what has traditionally been considered a comfortable middle-class income in many parts of the country.

“For generations of Americans, $100,000 has long been a magic number,” the report noted. “It has been seen as a level of yearly earnings that says: ‘You’ve made it. You’re successful.'”

The 25 communities