Cost-of-Living Rankings by Income Level for the Top 20 Most Populated U.S .Cities: January 2012 Snapshot
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February 3, 2012
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Looking to live the big city lifestyle without the big city price tag? You may think about getting some cowboy boots and a ten-gallon hat. ERI Economic Institute’s recent renter’s cost of living by income level rankings pulled in six highly populated Lone Star State locations with relatively lower cost-of-living differentials compared to the U.S. national average.
As expected, New York City tops the list, followed by three California cities and Chicago to round out the top five most expensive cities. The January 2012 table below compares the annual income needed to maintain the same management/professional standard of living as the national average for the 20 most populated cities in the U.S. ERI considers an individual’s cost-of-living differentials to be dependent on his or her earnings level. The comparison provides a snapshot for five levels: 60K, 75K, 90K, 105K, and 120K.
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To illustrate what constitutes this ranking, let’s dig into the underlying data for the Windy City and Fort Worth. In Chicago, a family needs to earn $152,024 to maintain the national average standard of living with an income of $120,000. That’s an estimated 26.7% higher cost of living. Conversely, Fort Worth’s cost of living is about 1.7% lower than the national average; annual earnings of $117,985 will purchase the $120,000 national average lifestyle.
Looking at the graphs below, Higher Rent/Utilities/Insurance costs ($50,574 in Chicago and $26,233 in Fort Worth) and higher Income+Payroll Taxes ($29,501 in Chicago and $23,933 in Fort Worth) are responsible for most of the cost-of-living differentials.
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Mobility professionals analyze these cost-of-living differentials to determine relocation packages for individual employees as well as to prepare for large-scale office or plant relocations. ERI's Relocation Assessor allows users to customize reports by spending level; living areas; home rental or ownership (including mortgage specifications); home size; family size; and automobile information, including value and annual mileage.
