New research reveals that living comfortably in a major Californian city is becoming increasingly unattainable for most American families.
To lead a comfortable life in San Francisco, a family of four requires an annual income of $408,000, placing it at the top of a new list of American cities.
San Jose, located an hour to the south, ranks second with a required income of $403,000. Oakland, also in the Bay Area, is third on the list, with a necessary income of $371,000.
The list, published by SmartAsset, ranks 56 major American cities based on the annual family income required to live comfortably.
The income estimates are calculated using the MIT Living Wage Calculator, which considers expenses such as housing, food, utilities, transportation, and leisure activities.
The budgeting guideline used follows the 50/30/20 rule, dividing post-tax income into 50% for needs, 30% for wants, and 20% for savings.
In Southern California, Irvine in Orange County ranks 8th nationwide, necessitating a family income of $327,000, while San Diego ranks 12th with a requirement of $313,000.
With the median household income for a family of four in the U.S. at $124,990, living in any major Californian metro area poses a challenge for most families.
California cities dominate the list largely due to a severe housing shortage, high tax rates, and stringent state regulations.
The median price for a single-family home in California is $930,260, according to CAR, the highest in the U.S. In the Bay Area, the median home price is $1.45 million, with San Francisco reaching $2.2 million as of May.
California also has the highest top marginal income tax rate in the country, at 13.3% for top earners.
While California cities are prevalent in the top 20 list, cities like Boston, New York, and Washington, D.C. remain among the most expensive in the country as well.
