Enjoying a nice, comfortable life in a major Californian city is now out of reach for most American families, according to new research.
A family of four to live comfortably in San Francisco needs an annual salary of $408,000, topping a new list of American cities.
San Jose, an hour south, comes in second at $403,000. The Bay Area’s Oakland comes in third with an eye-watering $371,000 required to enjoy a comfortable life.
A graph showing the income needed for a family of four to live comfortably in U.S. cities. Visual CapitalistThe new list, published by SmartAsset, ranks 56 major American cities by annual family income, measured by the MIT Living Wage Calculator, which takes into account the cost of basic necessities like housing, food, utilities, transportation, and hobbies.
The measure follows the 50/30/20 rule, which breaks down budgeting where “50% of your post-tax income goes to needs, 30% of your wants, and 20% gets set aside for the future.”
In Southern California, Irvine in Orange County is eighth in the nation, requiring a family salary of $327,000, while further south San Diego comes in 12th with $313,000.
The median household income for a family of four in America is just $124,990, meaning most would struggle to live in any major Californian metro.
A view of Irvine, which ranks eighth in the nation, requiring a family salary of $327,000. Getty Images
People sitting down on the hill of Alamo Square Park in San Francisco, California Getty ImagesOne of the main reasons for California cities dominating the list is due to a severe housing shortage, a high tax rate and strict state regulations.
A median single-family home price in the Golden State is $930,260 according to the California Association of Realtors, which is the highest among U.S. states in America. The median price in the Bay Area was $1.45 million while San Francisco was at a staggering $2.2 million in May.
The state also leads the nation with a top marginal income tax rate of 13.3% for top earners.
While California cities dominate the top 20 list, places such as Boston, New York, and Washington, D.C. continue to rank among the most expensive areas in the country as well.
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