A six-figure income is used to symbolize financial success in America. But in many of the nation’s largest cities, even $100,000 a year isn’t enough to keep a family of three afloat. A recent LendingTree analysis paints a troubling picture of just how far a once-comfortable salary can fall short in today’s high-cost urban centers.
In a comprehensive review of monthly expenses across the 100 largest U.S. metro areas, LendingTree found that in 25 cities, average costs for necessities exceed the monthly take-home pay of a family earning $100,000 per year. That means families making what was once considered a benchmark of middle-class comfort are now operating at a deficit, just trying to cover rent, childcare, food, and other essentials.
“The fact that you can make six figures and be broke in so many of our biggest cities… is definitely troubling,” said Matt Schulz, chief consumer finance analyst at LendingTree. “$100,000 used to be a magic number that meant someone had made it financially. That’s clearly not the case anymore in much of the country.”
To determine affordability, LendingTree calculated average monthly costs for a family of three. The categories included rent for a two-bedroom apartment, child care, transportation, including car ownership, health insurance premiums, food, entertainment, utilities, state and federal taxes, payroll taxes, and 401(k) contributions. Notably, debt payments such as student loans and credit card bills were not included. According to the report, “If we had done that, the number of metros in which six-figure earners are still broke would be far larger.”
At the top of the unaffordability list is San Jose, where monthly expenses average $10,540—more than $2,200 above the $8,333 monthly income that comes from a $100,000 annual salary. Following San Jose are other high-cost metros: San Francisco ($10,137), Boston ($9,946), Honolulu ($9,824), Washington, D.C. ($9,767), and Seattle ($9,376). Even cities like New York, Denver, Baltimore, Portland, and Minneapolis have basic living expenses that exceed the $100,000 income threshold.
In New York City, for example, the average family of three would run a $744 monthly deficit just trying to meet standard expenses. In Denver, that figure is $630. And in Portland, Oregon, the shortfall is $456.
The flip side of the report highlights the 75 cities where six figures still offer financial breathing room. Cleveland leads with a monthly surplus of $1,393, followed by Louisville ($1,281), Memphis ($1,272), New Orleans ($1,216), and Cincinnati ($1,207). Cities such as Milwaukee, Pittsburgh, Indianapolis, Detroit, Houston, Las Vegas, and Nashville also offer net monthly income ranging from $751 to $1,028 after expenses are paid.
These findings illustrate the growing disparity in the cost of living across urban America. For example, the median U.S. household income in 2023 was $80,610—well below the $100,000 benchmark examined in the study. That suggests families earning at or near the national average would be under even greater pressure in many of the unaffordable cities listed.
For middle-income families, the implications are significant. A salary that once meant stability and comfort is now barely enough—or not enough at all—in dozens of cities. As inflation continues and housing costs soar, many households may be forced to cut back on savings, relocate to more affordable regions, or even take on additional work just to break even.
The LendingTree report serves as a warning: without major changes to housing policy, wage growth, or cost-of-living relief, a growing number of Americans will find that making six figures no longer guarantees a financially secure life.
