Economists and policymakers have always struggled to define what a 'living income' means.
Government agencies provide different guidelines, many of which are based on outdated or incomplete measures, such as the Consumer Price Index or federal minimum wage levels.
Others benchmark living incomes against poverty wage estimates from the Department of Health and Human Services.
For a better affordability benchmark, Creditnews Research scoured data from MIT's Living Wage Institute and ranked America's largest metros by minimum "living income" thresholds.
These thresholds reflect the minimum earnings needed to cover the two foundational tiers of Maslow’s hierarchy of needs.
They translate to eight spending components: childcare, civic engagement, food, healthcare, housing, internet and mobile, transportation, and other necessities.
A living income means that a household can cover these basic needs without public assistance but lacks money for discretionary spending, such as eating out and traveling.
The income threshold is also not sufficient for any type of savings, including retirement accounts—which means the household is living paycheck to paycheck.
What we've discovered puts America's affordability crisis in a whole new perspective.
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The most expensive metros are San Jose, CA; San Francisco, CA; Boston, MA; Bridgeport, CT; Urban Honolulu, HI; San Diego, CA; New York, NY; Seattle, WA; Oxnard, CA; Denver, CO. These metros require at least $140,000 annually or an hourly wage of $33 with both parents working full-time;
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The least expensive metros are McAllen, TX; El Paso, TX; Jackson, MS; Little Rock, AR; Lakeland, FL; Augusta, GA; Wichita, KS; New Orleans, LA; Knoxville, TN; and Deltona, FL. In these metros, a family has to earn at least $87,000 annually—or $20 on an hourly basis;
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In 85 of the top 100 most populous metros, the average family has to earn more than six figures to scrape by. By comparison, the nationwide income threshold is just under $75,000;
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The most expensive areas to cover basic needs are on the West Coast and Northeast where families in these areas have to make $140,000 or more just to cover basic living expenses;
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Not surprisingly, there's a significant gap between family and single adult income thresholds. The minimum income for a family is approximately 2.5x higher than that of single adult households.
Full data
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.
The most expensive metros to meet basic needs
1. San Jose-Sunnyvale-Santa Clara, CA
- A family of four needs at least $167,271 annually, which translates to an hourly wage of $40.21 if both parents work;
- Single adults require $68,379 annually;
- A family’s minimum income is approximately 2.45 times that of a single adult.
2. San Francisco-Oakland-Berkeley, CA
- Families need to bring in at least $164,827 annually, equating to an hourly wage of $39.62 for each parent;
- Single adults need $62,487 per year;
- A family's income threshold is around 2.64 times that of a single adult.
3. Boston-Cambridge-Newton, MA-NH
- A family of four must earn $159,868 annually, translating to $38.43 per hour per parent;
- Single adults need $62,122 annually;
- Family income is about 2.57 times that of a single adult.
4. Bridgeport-Stamford-Norwalk, CT
- Families require $158,925 annually, which means an hourly wage of $38.20 for each full-time working parent;
- Single adults need to earn at least $61,393 per year;
- The family income threshold is roughly 2.59 times that of a single adult.
5. Urban Honolulu, HI
- A family needs to bring in at least $149,753 annually, equating to an hourly wage of $36.00 for each parent;
- Single adults need a minimum of $59,695 annually;
- The income threshold for family is around 2.51 times that of a single adult.
6. San Diego-Chula Vista-Carlsbad, CA
- Families must earn at least $144,744 annually, translating to $34.79 per hour per parent;
- Single adults need a minimum of $58,320 per year;
- A family's income threshold is about 2.48 times that of a single adult.
7. New York-Newark-Jersey City, NY-NJ-PA
- A family of four needs $142,516 annually, which translates to an hourly wage of $34.26 if both parents work;
- Single adults require $58,143 annually;
- The family income threshold is approximately 2.45 times that of a single adult.
8. Seattle-Tacoma-Bellevue, WA
- Families need to bring in at least $141,875 annually, equating to an hourly wage of $34.10 for each working parent;
- Single adults need a minimum $57,346 per year;
- A family's income threshold is around 2.47 times that of a single adult.
9. Oxnard-Thousand Oaks-Ventura, CA
- A family must earn $140,351 annually to scrape by, translating to $33.74 per hour per parent;
- Single adults can get by with at least $56,243 annually;
- The income threshold for a family of four is about 2.50 times that of a single adult.
10. Denver-Aurora-Lakewood, CO
- A family needs at least $140,241 annually, equating to an hourly wage of $33.71 for each working parent;
- Single adults have to earn at least $56,176 annually to get by;
- The family income threshold is approximately 2.50 times that of a single adult.
The least expensive metros to meet basic needs
1. McAllen-Edinburg-Mission, TX
- A family of four needs to earn at least $87,133 annually, equating to an hourly wage of $20.95 if both parents work;
- Single adults require a minimum annual income of $37,632;
- A family's income threshold is approximately 2.32 times that of a single adult.
2. El Paso, TX
- A family of four must bring in at least $90,239 per year, which translates to an hourly wage of $21.69 for each working parent;
- Single adults need $37,727 annually;
- Family income is around 2.39 times that of a single adult.
3. Jackson, MS
- To scrape by, a family of four needs $93,124 annually, or $22.39 per hour per parent;
- Single adults need $38,745 per year;
- A family’s income threshold is about 2.40 times that of a single adult.
4. Little Rock-North Little Rock-Conway, AR
- A family requires $93,682 per year, equating to an hourly wage of $22.52 for each working parent;
- Single adults have to bring in an annual income of $38,933;
- The family income threshold is roughly 2.41 times that of a single adult.
5. Lakeland-Winter Haven, FL
- Families need at least $94,024 annually, which translates to an hourly wage of $22.60 for each parent;
- To scrape by, single adults require $39,691 annually;
- The family income threshold is around 2.37 times that of a single adult.
6. Augusta-Richmond County, GA-SC
- A family must earn $95,441 annually, translating to $22.94 per hour per parent;
- Single adults need at least $40,172 per year;
- A family's income threshold is about 2.38 times that of a single adult.
7. Wichita, KS
- Families need to make at least $96,025 annually, equating to an hourly wage of $23.08 for each working parent;
- Single adults require to earn at least $40,515 annually;
- The family income threshold is roughly 2.37 times that of a single adult.
8. New Orleans-Metairie, LA
- A family of four requires $96,519 annually, translating to $23.20 per hour per parent;
- To get by, single adults need to rake in at least $40,640 annually;
- The family income threshold is about 2.37 times that of a single adult.
9. Knoxville, TN
- To scrape by, a family needs $96,954 annually, which means an hourly wage of $23.31 for each working parent.
- Single adults have to earn a minimum of $40,892 per year just to cover basic needs;
- The family income threshold is around 2.37 times that of a single adult.
10. Deltona-Daytona Beach-Ormond Beach, FL
- A family must earn at least $97,025 annually, equating to an hourly wage of $23.32 per parent;
- Single adults need $40,929 per year;
- The family income threshold is about 2.37 times that of a single adult.
Methodology
Income threshold for single adult without children
The minimum annual gross income needed to cover the essential costs of a household consisting of one working adult with no children in a given metro area.
While there are many different interpretations of basic needs, the study uses estimates provided by MIT, which relies on the two foundational tiers of Maslow’s hierarchy of needs (physiological needs and safety needs) to identify eight components that offer a minimum but adequate standard of living without reliance on public assistance.
These components are childcare, civic engagement, food, healthcare, housing, internet and mobile, transportation, and other necessities.
All data is adjusted for inflation (December 2023 dollars) using the Consumer Price Index.
Income threshold for family with two working adults and two children
The minimum annual gross income required to cover the essential costs of a household consisting of two working adults and two children in a given metro area.
The most significant cost component of a household with children is childcare.
Since childcare costs vary by age, the estimates assume that the first child uses toddler care, the second uses preschool care, and the third child uses before/after school and two full-time months of summer care.
Data on the cost of childcare primarily comes from the Department of Labor Women’s Bureau’s National Database of Childcare Prices, which includes county-level price data from state-run market rate surveys for childcare between 2008 and 2018.
All data is adjusted for inflation (December 2023 dollars) using the Consumer Price Index for all urban consumers for daycare and preschool (CPI-USeries SEEB03).
The remaining cost components that define a minimum standard of living, such as food and housing, also account for the number of children in the household.
- Living Wage Institute
- The Massachusetts Institute of Technology
- Department of Labor Statistics Women’s Bureau: National Database of Childcare Prices