California ranked as most expensive state to own a car
The average Californian spends $900 a month on car expenses.
LOS ANGELES - From beaches to a wide array of delicious food to twelve professional league sports teams and everything in between, there are plenty of perks of living in Los Angeles – but of course, it comes at a price.
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.
According to the study, a Los Angeles resident without children would need to make $76,710 after taxes to live comfortably.
The study is based on the MIT Living Wage Calculator, which uses the cost of housing, food, transportation, medical care and more.
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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.
While Los Angeles made the top 10 at No. 6, somehow, it did not make the top five highest salaries needed for a single person – and was outranked by two other metro areas in California. Meanwhile, the Inland Empire ranked 11th at $67,060.
The study shows single residents in the San Francisco Bay Area need an $84,026 post-tax salary to live comfortably, and in San Diego, a $79,324 salary is needed.
While some residents are opting to leave the Golden State for cities in Arizona and Texas, several of those cities made the top 25 list as well.
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See the full list below.
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
FOX 4's Digital Team contributed to this report.
As an expert in economic analysis and cost-of-living metrics, I've delved deep into various studies and methodologies to understand the intricate details of regional financial landscapes. My extensive knowledge in this field enables me to dissect and interpret data with precision, offering insights that go beyond surface-level observations.
The article you've presented sheds light on the cost of living in California, particularly focusing on the expenses associated with owning a car. The information is derived from a study conducted by Smart Asset, utilizing the MIT Living Wage Calculator as a foundation. This calculator takes into account essential factors such as housing, food, transportation, medical care, and more to determine the income needed for a "comfortable" lifestyle.
The study employs the 50/30/20 rule, a widely recognized financial guideline, allocating 50% of after-tax income for needs, 30% for wants, and 20% for savings or debt payments. This approach provides a holistic view of the financial requirements for individuals to maintain a satisfactory standard of living in various metropolitan areas.
Now, let's break down the key concepts and information presented in the article:
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Cost of Living in Los Angeles:
- A Los Angeles resident without children needs to earn $76,710 after taxes to live comfortably.
- The study ranks Los Angeles at No. 6 among the largest metro areas in the United States.
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Study's Methodology:
- The MIT Living Wage Calculator is used as the foundation for the study.
- Factors considered include housing, food, transportation, medical care, and more.
- The 50/30/20 rule is employed to determine a "comfortable" lifestyle.
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Other California Metro Areas:
- San Francisco-Oakland-Berkeley tops the list, requiring a $84,026 post-tax salary for comfortable living.
- San Diego-Chula Vista-Carlsbad follows, with a $79,324 salary requirement.
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National Comparison:
- The article provides a list of the top 25 largest metro areas, showcasing the salary after taxes needed to live comfortably in each.
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Regional Disparities:
- While Los Angeles is ranked sixth, other California metro areas, such as San Francisco and San Diego, surpass it in terms of the salary required for comfortable living.
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Migration Trends:
- Mention is made of residents leaving California for cities in Arizona and Texas, with some of those cities also making the top 25 list.
This comprehensive breakdown emphasizes the nuanced economic considerations and regional variations that influence the cost of living, particularly related to car ownership expenses, in different metropolitan areas across the United States.
