There’s one major U.S. city where making $100,000 may not even cover basic bills (2024)

“The biggest factor in cost of living is housing, and that’s where San Francisco is really pushed over the top in terms of cost,” says Andrew DePietro, the site’s lead researcher and data analyst. “Tack on other costs of living — utilities, health care, etc. — and San Francisco is the only city where $100k isn’t enough.”

Indeed, the rent is too damn high: The median across all units in San Francisco is more than $4,300, according to Zillow data for March 2019. (And for that matter, buying isn’t so easy either, as MarketWatch recently covered.)

Still, it’s important to note that a six-figure salary could better cover your basics if you found a cheaper unit to rent (as many people do) — or moved in with roommates — and slashed other costs. And GoBankingRate’s analysis used median rents and average figures for things like groceries to determine whether you could cover your basics, so, of course, many people making $100,000 a year spend less on these items and thus can afford them.

5 cities where $100,000 barely covers your basics

You’ll notice that all of the top 5 cities are in California, and DePietro notes that’s largely because of housing costs: “SF has monthly rent in excess of $4,000; L.A., Oakland, San Jose all have median rents in excess of $3,000 a month, San Diego follows closely at $2,725,” he says. Plus grocery costs are high in these areas, as are income taxes.

For its part, New York didn’t make the top 10, and DiPietro explains that’s in part because transportation costs are low in the public-transit-dominant city. Plus, “the city’s median rent across all homes is $2,397, “thanks mainly to cheaper rents in boroughs like the Bronx keeping the overall rent price down,” he adds.

So what should you do if you’re struggling to pay your bills in pricey cities like these? Look first at slashing housing costs, which typically take up the lion’s share of your budget. These are “the 800 lb gorilla, if you will,” says Mitchell Hockenbury, a certified financial planner at 1440 Financial Partners in Kansas City, Mo. Speaking of how much people spend each day on things like coffee, he added, “The ‘latte factor’ has nothing on the amount folks spend on housing. If you can cut costs with housing you are better off than any other line on your budget.”

He suggests renting out a room in your home to offset costs, or renting a room in someone else’s home versus renting an entire apartment or home. “If you are from the area and can live at home and pay a cursory amount to your parents ($200/month) it is a great way to build up your cash,” he adds.

And Bobbi Rebell, a certified financial planner and host of the Financial Grownup podcast and co-host of the Money in the Morning podcast, adds that getting a roommate can help too. “Live with roommates but look for apartments and houses that can be configured with more rooms than you are paying for. For example, in New York some one bedrooms have living rooms in which people can build a partition to make a second bedroom. Of course, make sure this is legal and you aren’t violating any building codes.”

Rebell adds that if you can ditch your car, do it: “Do a monthly subscription to another mode of transportation — like a bike, electric scooter [or public transit] — and be sure to see if your employer has a program where you can pay for it with pre-tax dollars.” And she notes that you can cut entertainment costs by getting a city ID if it is offered. “They often give you free admission to many cultural institutions, fun activities and also discounts at many retailers,” she says.