Introduction to Middle-Class Financial Struggles
A depressing new study has found that middle-class New Yorkers are sinking more than $12,000 every year just to make ends meet. The study analyzed the most populous cities in America to find out where salaries are rising the most, the cost of living in each metropolis, and compared it to the average income there.
Methodology of the Study
To calculate the numbers, the financial site used data from the Bureau of Labor Statistics, the US Census American Community Survey, and Pew Research. This comprehensive approach provides a clear picture of the financial struggles faced by middle-class families in different cities.
The Big Apple’s Financial Burden
The Big Apple is considered one of the worst cities in the country for the middle class. Annual household living costs are estimated at $91,888 – more than the median household income of $79,713. This means the average middle-class New York family spends $12,175 more than they earn just to cover essentials, including food, housing, utilities, transportation, and medical costs.
Comparison with Other Cities
Despite New York City’s reputation as a center for high-paying jobs, the median household income is actually far higher in several other cities. In San Francisco, for example, the median household income is $141,446, while in Seattle it is $121,984. While the cost of essentials is also high in both cities, the average middle-class family in these metros is actually doing far better financially.
Financial Opportunities in Medium-Sized Cities
The study shows that medium-sized cities represent the financial opportunity for middle-class families, where an adequate median household income far exceeds the cost of living. In Oklahoma City, for example, the median household income is $66,072, but the annual cost of living for a middle-class family is only $38,391. This means that an additional $28,311 is saved per year. In Fort Worth, Texas, however, the median household income is $76,602, while annual middle-class spending is $43,383. That leaves $33,219 for discretionary spending or savings.
Conclusion
The financial struggles of middle-class families vary greatly from city to city. While cities like New York pose significant challenges, others like Oklahoma City and Fort Worth offer more financial opportunities. Understanding these differences is crucial for individuals and families looking to make informed decisions about their financial futures.
