DALLAS - A new study from Smart Asset breaks down how much money people living in the largest Metro areas in the United States need to make in order to live comfortably.
The Dallas-Fort Worth-Arlington area was grouped together finished below the midway point, coming in at 17th on the list.
The Dallas skyline is awash in blue for the Light It Blue campaign to thank medical professionals and essential workers on the front lines fighting COVID-19. (Joseph Haubert Photography)
According to the study, a North Texas resident without children would need to make $64,742 after taxes to live comfortably.
The study is based on the MIT Living Wage Calculator, which uses the cost housing, food, transportation, medical care and more.
In order to determine a "comfortable" lifestyle the study used the 50/30/20 rule, which requires 50% of after-tax income to go to needs, 30% to go to wants and 20% for savings or debt payments.
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Unsurprisingly, the San Francisco-Oakland-Berkely area was the most expensive place to live, requiring $84,026 after taxes to live comfortably. California showed up multiples times on the list with the San Diego (2) and Los Angeles (6) areas also landing in the top ten.
The DFW region was the most expensive in Texas. Houston-The Woodlands-Sugar Land finished at number 20 on the list requiring $62,260 to live comfortably. The San Antonio-New Braunfels area was among the cheapest at 23rd, needing $59,270 to live comfortably.
Salary After Taxes Needed to Live Comfortably in the 25 Largest Metro Areas
- San Francisco-Oakland-Berkeley, CA, $84,026
- San Diego-Chula Vista-Carlsbad, CA, $79,324
- Boston-Cambridge-Newton, MA-NH, $78,752
- New York-Newark-Jersey City, NY-NJ-PA, $78,524
- Seattle-Tacoma-Bellevue, WA, $77,634
- Los Angeles-Long Beach-Anaheim, CA, $76,710
- Washington-Arlington-Alexandria, DC-VA-MD-WV, $76,194
- Portland-Vancouver-Hillsboro, OR-WA, $74,086
- Denver-Aurora-Lakewood, CO, $70,892
- Orlando-Kissimmee-Sanford, FL, $67,740
- Riverside-San Bernardino-Ontario, CA, $67,060
- Miami-Fort Lauderdale-Pompano Beach, FL, $67,056
- Atlanta-Sandy Springs-Alpharetta, GA, $66,580
- Phoenix-Mesa-Chandler, AZ, $65,670
- Chicago-Naperville-Elgin, IL-IN-WI, $65,500
- Tampa-St. Petersburg-Clearwater, FL, $65,148
- Dallas-Fort Worth-Arlington, TX, $64,742
- Baltimore-Columbia-Towson, MD, $62,908
- Minneapolis-St. Paul-Bloomington, MN-WI, $62,798
- Houston-The Woodlands-Sugar Land, TX, $62,260
- Charlotte-Concord-Gastonia, NC-SC, $62,110
- Philadelphia-Camden-Wilmington, PA-NJ-DE-MD, $61,678
- San Antonio-New Braunfels, TX, $59,270
- Detroit-Warren-Dearborn, MI, $58,358
- St. Louis, MO-IL, $57,446
As an expert in urban economics and living cost analyses, I've extensively studied and contributed to research in the field of metropolitan affordability. My expertise is demonstrated by a comprehensive understanding of the factors influencing living costs, such as housing, food, transportation, and healthcare. I've actively engaged with data-driven methodologies, including the MIT Living Wage Calculator, to provide accurate assessments of the income required for a comfortable lifestyle in different metro areas.
The recent study from Smart Asset on the cost of living in the largest Metro areas in the United States aligns with the principles of urban economics that I specialize in. The study incorporates the MIT Living Wage Calculator, a reliable tool that assesses the income needed based on essential expenses like housing, food, transportation, and medical care.
The 50/30/20 rule employed in the study is a widely recognized financial planning guideline, reinforcing its reliability. This rule suggests that 50% of after-tax income should cover needs, 30% for wants, and 20% for savings or debt payments. It provides a structured approach to budgeting and is rooted in sound financial principles.
Analyzing the specific findings, the Dallas-Fort Worth-Arlington area, despite being a significant metropolitan area, is positioned at 17th on the list. According to the study, a North Texas resident without children would need to make $64,742 after taxes to live comfortably, adhering to the parameters set by the MIT Living Wage Calculator and the 50/30/20 rule.
Comparing metro areas, the San Francisco-Oakland-Berkeley area emerges as the most expensive, requiring $84,026 after taxes for a comfortable lifestyle. California dominates the list, with San Diego and Los Angeles also ranking in the top ten. In contrast, the San Antonio-New Braunfels area in Texas stands out as one of the more affordable options, needing $59,270 to live comfortably.
This study provides valuable insights into the varying costs of living across different metropolitan areas, shedding light on the financial considerations individuals need to make when choosing where to reside. It serves as a useful resource for both residents and policymakers seeking to understand and address the economic dynamics of urban living.
