For generations, the phrase “six-figure salary” has been synonymous with financial success. It represented security, comfort, and the freedom to build a better life. But according to a new analysis from LendingTree, that long-held belief is rapidly becoming outdated. In today’s economy, even families earning $100,000 a year a salary well above the national median are finding themselves stretched thin, breaking even, or falling behind in some of America’s largest and most expensive cities.
This startling revelation raises a critical question:
If $100,000 is no longer enough, what does financial stability even look like in 2025?
The New Cost of Living Crisis
LendingTree’s report examined the 100 largest metropolitan areas in the United States, calculating the average monthly cost of living for a family of three. The analysis covered essential expenses including:
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Rent for a two-bedroom apartment
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Childcare
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Transportation and car ownership
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Health insurance premiums
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Groceries and dining
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Utilities and household essentials
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Entertainment
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State and federal taxes
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Payroll taxes
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401(k) contributions
What they found is striking:
In 25 out of 100 major U.S. cities, a family earning $100,000 ends the month in the negative.
That means the income that once promised financial comfort no longer covers the basics, let alone savings or luxuries, for a typical American household in many urban areas.
“A Magic Number That Doesn’t Feel Magical Anymore”
LendingTree chief consumer finance analyst Matt Schulz describes the findings as sobering:
“$100,000 used to be a magic number that meant someone had made it financially. That’s clearly not the case anymore in much of the country.”
He warns that the trend is likely to worsen as housing prices, childcare costs, transportation expenses, and taxes continue to rise at a pace that outstrips wage growth.
Why Families Feel Broke on $100,000
A salary of $100,000 equals roughly $8,333 in monthly take-home pay before major taxes and 401(k) contributions. But in many cities, essential living expenses exceed that amount sometimes by more than $2,000.
This mismatch is driven by several economic realities:
1. Soaring Housing Costs
In cities like San Jose, San Francisco, Seattle, New York, and Boston, skyrocketing rents alone can consume over half of a family’s monthly income.
2. Childcare Costs Rival Rent
In many metros, childcare can cost as much as or even more than housing, especially for families with infants or toddlers.
3. Transportation and Insurance Costs Keep Climbing
Car payments, gas, maintenance, parking, and insurance all contribute to a ballooning monthly budget.
4. Taxes Vary Dramatically by State
High-tax states reduce take-home pay significantly compared to lower-tax states, widening the affordability gap.
The Most Expensive Cities for Six-Figure Earners
Here are the major cities where a family earning $100,000 still ends up in the red each month:
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San Jose, CA:
Expenses: $10,540 → Net: –$2,207 -
San Francisco, CA:
Expenses: $10,137 → Net: –$1,804 -
Boston, MA:
Expenses: $9,946 → Net: –$1,613 -
Honolulu, HI:
Expenses: $9,824 → Net: –$1,491 -
Washington, D.C.:
Expenses: $9,767 → Net: –$1,434 -
Seattle, WA:
Expenses: $9,376 → Net: –$1,043 -
New York, NY:
Expenses: $9,077 → Net: –$744 -
Denver, CO:
Expenses: $8,963 → Net: –$630 -
Baltimore, MD:
Expenses: $8,842 → Net: –$509 -
Portland, OR:
Expenses: $8,789 → Net: –$456 -
Minneapolis, MN:
Expenses: $8,650 → Net: –$317 -
Hartford, CT:
Expenses: $8,423 → Net: –$90
These numbers highlight a profound shift:
The cost of simply existing in many major cities now outpaces what used to be considered a high income.
The Cities Where $100,000 Still Goes the Distance
Not all metros paint a bleak picture. In 75 U.S. cities, a six-figure income still provides breathing room sometimes even a solid surplus.
These cities offer families a far more comfortable financial life:
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Cleveland, OH → +$1,393 leftover monthly
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Louisville, KY → +$1,281
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Memphis, TN → +$1,272
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New Orleans, LA → +$1,216
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Cincinnati, OH → +$1,207
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Milwaukee, WI → +$1,028
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Pittsburgh, PA → +$1,025
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Indianapolis, IN → +$922
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Detroit, MI → +$885
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Houston, TX → +$883
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Las Vegas, NV → +$835
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Nashville, TN → +$751
These cities show that affordability still exists but increasingly outside the traditional economic powerhouses of the East and West coasts.
The Missing Variable: Household Debt
One major factor is not included in LendingTree’s analysis:
Debt.
This includes:
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Student loans
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Credit card balances
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Auto loans
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Medical debt
The report acknowledges this gap directly, suggesting the situation is even worse than the numbers show:
“If we had included debt payments, the number of metros in which six-figure earners are still broke would be far larger.”
For the average American family which carries over $100,000 in combined debt on average these additional monthly payments can completely erase financial stability.
A New Definition of Financial Success
This study reflects a broader shift in the U.S. economy. Financial stability today depends not just on how much you earn, but also:
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Where you live
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Your cost of housing
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Childcare needs
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Debt burden
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Tax environment
A six-figure salary in Cleveland or Memphis can provide comfort and security.
That same salary in San Francisco, Boston, or New York can leave a family struggling to keep up.
The cultural perception of financial success is changing and fast.
The Bottom Line
The myth of the “comfortable six-figure lifestyle” is fading. As the cost of living continues to rise faster than wages, even well-paid Americans are feeling squeezed.
LendingTree’s report is a wake-up call:
Income alone is no longer a reliable measure of financial well-being. Location and the realities of modern living expenses determines how far your money truly goes.
As Schulz warns, unless affordability improves or wages rise significantly, the gap between income and expenses will only continue to widen.
Source: https://www.pressreader.com/usa/usa-today-us-edition/20250508/281694030665640