As an avid researcher and data enthusiast, I recently embarked on a fascinating journey to uncover the cities in the U.S. where your dollar stretches the furthest.
My curiosity led me to pore over the United States Census Bureau’s 2020 American Community Survey, where I meticulously analyzed and ranked 100 cities. The criteria? They had to boast both a median household income and a mean household income above the national average.
But I didn’t stop there. I wanted to paint a more comprehensive picture, so I delved deeper to uncover the itemized costs of living for necessities in each city.
This included annual median housing, groceries, healthcare, utilities, and transportation costs. By doing so, I was able to calculate the average monthly living expense for each area.
With this data in hand, I subtracted these living expenses from the average yearly income for each city. The result? A clear picture of how much residents could potentially save after covering their expenses.
So, if you’re considering a change of scenery and want your hard-earned money to go further, let my research guide you. I’ve done the number crunching so you can focus on the exciting part – choosing your next adventure!
Let’s Begin
12. Chesapeake, Virginia
- Average household income: $81,261
- Total necessities: $36,536.41
In the charming city of Chesapeake, Virginia, you’ll find that your wallet remains pleasantly plump even after covering all your basic needs. The two primary expenses here are housing and groceries. The annual grocery bill aligns with the national average, coming in at $5,259. Meanwhile, housing costs are slightly above the national average at $15,498.60 annually.
11. Round Rock, Texas
- Average household income: $107,314
- Total necessities: $36,341.93
Round Rock, Texas, offers a lower-than-average annual grocery bill of $4,948.72 and healthcare costs of $5,054.00. While housing and transportation costs may be a bit higher than the national average, the impressive average household income of $107,314 ensures a comfortable cushion for your budget after necessities.
10. Pearland, Texas
- Average household income: $123,869
- Total necessities: $36,294.56
Pearland, Texas, the second Texan city on our list, boasts higher-than-average salaries. While transportation costs are slightly steep at $7,091.14 annually, and housing costs are above the national average at $15,326.25, the average household income of $123,869 leaves a substantial $87,574.44 remaining after covering the essentials.
9. Virginia Beach, Virginia
- Average household income: $101,686
- Total necessities: $36,254.73
Virginia Beach offers below-average expenses for utilities and transportation, costing $4,100.53 and $5,568.36 annually, respectively. Even though healthcare and housing costs are slightly above average, you’ll still have a comfortable $65,431.27 left over after paying for necessities.
8. Minneapolis, Minnesota
- Average household income: $93,145
- Total necessities: $35,502.35
In the vibrant city of Minneapolis, you’ll enjoy lower-than-average costs for utilities and healthcare. Even though housing, groceries, and transportation costs are slightly above average, you’ll still have a reassuring $57,642.65 remaining after covering your basic needs.
7. Raleigh, North Carolina
- Average household income: $98,016
- Total necessities: $35,301.79
Raleigh, North Carolina, offers lower-than-average costs for utilities and transportation, costing $4,184.99 and $5,034.25 annually, respectively. Even with slightly higher costs for housing and healthcare, you’ll still have a substantial $62,714.21 left over after covering your necessities.
6. Olathe, Kansas
- Average household income: $110,757
- Total necessities: $35,180.49
Olathe, Kansas, a gem in the heartland of America, offers a comfortable lifestyle with utilities and transportation costs falling below the national average. Even with slightly higher costs for housing and healthcare, you’ll still have a substantial $75,576.51 remaining after covering your basic needs. This makes Olathe an attractive place for those seeking a balance between income and cost of living.
5. Midland, Texas
- Average household income: $115,667
- Total necessities: $34,077.02
Midland, Texas, is a city where your dollar stretches further. With average annual grocery costs of $5,111.75 and healthcare costs of $5,517.42, you’ll still have a whopping $81,589.99 left over after accounting for all necessities. This surplus makes Midland an appealing destination for those seeking a high standard of living.
4. Charlotte, North Carolina
- Average household income: $98,462
- Total necessities: $33,496.87
Charlotte, North Carolina, not only boasts a robust average household income, but it also offers affordable costs for all major necessities. With the third-lowest average annual housing costs on this list at $13,125.42, you’ll have a comfortable $64,965.13 left over after all necessities are paid. This makes Charlotte an attractive city for those seeking a balance between income and expenses.
3. Rochester, Minnesota
- Average household income: $98,609
- Total necessities: $31,918.25
Rochester, Minnesota, is a city where your income can stretch even further, allowing for a comfortable lifestyle. All necessities in Rochester are cheaper than the national average, leaving a substantial $66,690.75 remaining after covering your basic needs. This surplus, combined with the city’s high quality of life, makes Rochester an appealing destination.
2. Broken Arrow, Illinois
- Average household income: $104,389
- Total necessities: $30,048.38
Broken Arrow, Illinois, is a city where you’ll not only have a hefty $74,340.62 left over after necessities, but you’ll also enjoy the lowest average housing costs on this list, at $9,598.79 annually. While annual healthcare costs are slightly above the national average at $5,969.94, the significant surplus left over after covering all necessities makes Broken Arrow an attractive place to live.
1. Aurora, Illinois
- Average household income: $97,118
- Total necessities: $29,946.70
In Aurora, Illinois, your income will go a long way. After covering annual costs for groceries ($5,059.16), healthcare ($5,223.02), housing ($10,381.01), utilities ($4,146.99), and transportation ($5,136.53), you’ll still have a substantial $67,171.30 left over. This surplus, combined with the city’s high quality of life and vibrant community, makes Aurora the top city on our list for balancing income and cost of living.
Methodology of Research
To identify the best cities offering a blend of high salaries and low cost of living, I embarked on a comprehensive research journey. Initially, I focused on the 100 largest cities in the U.S. that exhibited both (1) a median household income and (2) a mean household income surpassing the national average, as per the United States Census Bureau’s 2020 American Community Survey.
Once I had my list of qualified cities, I delved into the specifics of living costs for essential needs, using data from Sperling’s Best Places. This included (3) the cost of groceries, (4) healthcare expenses, (5) utilities charges, (6) transportation costs, and (7) housing expenditures.
To ensure accuracy, I then adjusted these cost of living indices from factors (3) to (7) using the 2021 Bureau of Labor Statistics Consumer Expenditure Survey. This allowed me to calculate (8) the total annual cost of necessities, which served as the primary ranking factor in my analysis.
This comprehensive approach ensured a robust and reliable ranking, providing a clear picture of where high salaries and low living costs intersect. All data was compiled and analyzed as of September 12, 2022, ensuring the most up-to-date insights.
FAQ
How does the cost of living vary within a city?
The cost of living can vary significantly within a city, depending on factors such as the neighborhood, the type of housing (apartment, single-family home, etc.), and the specific services and amenities available in the area. It’s always a good idea to research specific neighborhoods and housing options when considering a move to a new city.
How can I find out more about the job market in these cities?
You can research the job market in these cities by looking at job posting websites, local newspapers, and the city’s chamber of commerce or economic development website. You can also reach out to professional organizations in your field for information about job opportunities in these cities.
How does the tax situation in these cities affect the overall cost of living?
Taxes can significantly impact the overall cost of living. This includes not only income tax, but also property tax, sales tax, and any other local taxes. Some states, like Texas, do not have a state income tax, which can make a significant difference in your take-home pay and overall cost of living.
How does the quality of healthcare in these cities compare?
The quality of healthcare can vary significantly from city to city. Factors to consider include the availability of medical specialists, hospital ratings, health insurance coverage rates, and public health indicators like average lifespan and rates of chronic disease. Websites like the U.S. News & World Report provide rankings and reviews of healthcare facilities by city and state.
What about the cost of education in these cities?
The cost of education, including tuition for private schools and colleges, can also impact the cost of living. Additionally, the quality of public schools can be a significant factor for families with children. Websites like GreatSchools provide ratings and reviews of schools by city and state.
How can I find out more about the lifestyle and culture in these cities?
To get a sense of the lifestyle and culture in these cities, you can read local news outlets, blogs, and social media groups. You can also visit the city to experience it firsthand. Consider the city’s arts and culture scene, recreational opportunities, community events, and the overall vibe of the city when making your decision.
Epilogue
As we conclude this comprehensive exploration into the cities where high salaries and low costs of living intersect, it’s clear that the American landscape is rich with opportunities.
From the vibrant city life of Minneapolis, Minnesota, to the charming southern hospitality of Chesapeake, Virginia, each city on this list offers its unique blend of economic advantages and lifestyle perks.
