Understanding the Income Needed for the American Dream
For years, many Americans have expressed that a six-figure salary is essential for financial stability and success. This income level is increasingly seen as mandatory for maintaining a desirable quality of life.
Recent data from GOBankingRates reveals that to secure the American dream and enjoy a comfortable lifestyle, individuals must earn a minimum of $89,000 annually across the nation’s 50 largest cities.
View More: The Living Wage a Family of Four Needs in All 50 States
Discover Next: 5 Things You Must Do When Your Savings Reach $50,000
GOBankingRates assessed the required household income for achieving this ideal by analyzing various factors, including grocery and mortgage expenses in the 50 most populated U.S. cities. The annual cost of living, calculated from average mortgage and expenditure costs, was doubled to determine the income necessary for a comfortable lifestyle.
Explore the salary needed to attain the American dream, ranked from highest to lowest annual earnings.
Correction: The original version incorrectly calculated the cost of living. The ranking has been updated using accurate figures.
1. San Jose, California
- Household income for the American dream: $319K
- Total annual cost of living: $160K
- Grocery costs per year: $10,302
- Average monthly mortgage cost: $9,228
Read Next: How Much Money Is Needed To Be Considered Middle Class in Every State?
2. San Francisco, California
- Household income for the American dream: $297K
- Total annual cost of living: $149K
- Grocery costs per year: $10,565
- Average monthly mortgage cost: $8,110
3. San Diego, California
- Household income for the American dream: $242K
- Total annual cost of living: $121K
- Grocery costs per year: $9,940
- Average monthly mortgage cost: $6,660
4. Los Angeles, California
- Household income for the American dream: $234K
- Total annual cost of living: $117K
- Grocery costs per year: $9,433
- Average monthly mortgage cost: $6,007
5. New York City, New York
- Household income for the American dream: $220K
- Total annual cost of living: $110K
- Grocery costs per year: $10,565
- Average monthly mortgage cost: $4,656
6. Long Beach, California
- Household income for the American dream: $215K
- Total annual cost of living: $108K
- Grocery costs per year: $9,233
- Average monthly mortgage cost: $5,321
7. Seattle, Washington
- Household income for the American dream: $212K
- Total annual cost of living: $106K
- Grocery costs per year: $9,849
- Average monthly mortgage cost: $5,433
8. Oakland, California
- Household income for the American dream: $205K
- Total annual cost of living: $102K
- Grocery costs per year: $10,085
- Average monthly mortgage cost: $4,761
Major U.S. Cities Ranked by Household Income Required for the American Dream
9. Boston
- Household income for the American dream: $199K
- Total annual cost of living: $99K
- Grocery costs per year: $10,094
- Average monthly mortgage cost: $4,685
Learn More: here’s How Much Your State Collects on Every Type of Tax
10. Washington, D.C.
- Household income for the American dream: $187K
- Total annual cost of living: $94K
- Grocery costs per year: $10,339
- Average monthly mortgage cost: $4,165
find Out: How Much You Need To Earn To Be Upper Middle Class in Every State
11. Miami
- Household income for the American dream: $177K
- Total annual cost of living: $88K
- Grocery costs per year: $9,722
- Average monthly mortgage cost: $3,839
12. Denver
- Household income for the American dream: $159K
- Total annual cost of living: $80K
- Grocery costs per year: $9,233
- Average monthly mortgage cost: $3,452
13. Portland, Oregon
- Household income for the American dream: $156K
- Total annual cost of living: $78K
- Grocery costs per year: $9,396
- Average monthly mortgage cost: $3,228
14. Austin, Texas
- Household income for the American dream: $153K
- Total annual cost of living: $77K
- Grocery costs per year: $8,762
- Average monthly mortgage cost: $3,156
Explore Next: 25 Places To Buy a Home If You Want It To Gain Value
15. Sacramento, California
- Household income for the American dream: $150K
- Total annual cost of living: $75K
- Grocery costs per year: $9,496
- Average monthly mortgage cost: $2,864
see Next: How Long $1 Million in Retirement Will Last in Every State
16. Las Vegas
- Household income for the American dream: $143K
- Total annual cost of living: $71K
- Grocery costs per year: $9,269
- Average monthly mortgage cost: $2,656
17. Atlanta
- Household income for the American dream: $141K
- Total annual cost of living: $70K
- Grocery costs per year: $8,952
- Average monthly mortgage cost: $2,577
Top 10 Cities for Affordable Living in the U.S. Revealed
Discover More: 15 Housing Markets Where Prices Are Falling Ahead Of The Spring Selling Season
1. Mesa, Arizona
- Household income for the American dream: $138K
- Total annual cost of living: $68K
- Grocery costs per year: $8,807
- Average monthly mortgage cost: $2,617
2. Nashville, Tennessee
- Household income for the American dream: $136K
- Total annual cost of living: $68K
- Grocery costs per year: $9,242
- Average monthly mortgage cost: $2,600
3. Phoenix, Arizona
- Household income for the American dream: $136K
- Total annual cost of living: $68K
- Grocery costs per year: $8,816
- Average monthly mortgage cost: $2,485
4. Colorado Springs, Colorado
- Household income for the American dream: $134K
- Total annual cost of living: $67K
- Grocery costs per year: $8,916
- Average monthly mortgage cost: $2,704
5. Raleigh, North Carolina
- Household income for the American dream: $133K
- Total annual cost of living: $67K
- Grocery costs per year: $9,115
- Average monthly mortgage cost: $2,600
6. Virginia Beach, Virginia
- Household income for the American dream: $133K
- Total annual cost of living: $66K
- Grocery costs per year: $9,088
- Average monthly mortgage cost: $2,453
7. Bakersfield, California
- Household income for the American dream: $130K
- Total annual cost of living: $65K
- Grocery costs per year: $8,970
- Average monthly mortgage cost: $2,323
Explore More: here’s the Cost of Living in Every State
8. Fresno, California
- Household income for the American dream: $130K
- Total annual cost of living: $65K
- Grocery costs per year: $8,989
- Average monthly mortgage cost: $2,308
9. Charlotte, North Carolina
- Household income for the American dream: $129K
- Total annual cost of living: $64K
- Grocery costs per year: $8,989
- Average monthly mortgage cost: $2,368
10. Chicago, Illinois
- Household income for the American dream: $121K
- Total annual cost of living: $61K
- Grocery costs per year: $8,807
- Average monthly mortgage cost: $1,813
Key Financial Insights for Major U.S. Cities: A Comprehensive Overview
28. Dallas, Texas
- Household income for the American dream: $121K
- Total annual cost of living: $60K
- Grocery costs per year: $8,979
- Average monthly mortgage cost: $1,873
29. Arlington, Texas
- Household income for the American dream: $120K
- Total annual cost of living: $60K
- Grocery costs per year: $8,889
- Average monthly mortgage cost: $1,858
30. Minneapolis, Minnesota
- Household income for the American dream: $119K
- Total annual cost of living: $60K
- Grocery costs per year: $9,170
- Average monthly mortgage cost: $1,964
For You: How Far $750,000 in Retirement Savings Plus Social Security Goes in Every State
31. Fort Worth, Texas
- Household income for the American dream: $118K
- Total annual cost of living: $59K
- Grocery costs per year: $8,853
- Average monthly mortgage cost: $1,768
32. Tucson, Arizona
- Household income for the American dream: $117K
- Total annual cost of living: $58K
- Grocery costs per year: $8,653
- Average monthly mortgage cost: $1,983
33. Jacksonville, Florida
- Household income for the American dream: $115K
- Total annual cost of living: $58K
- Grocery costs per year: $8,989
- Average monthly mortgage cost: $1,753
34. Albuquerque, New Mexico
- Household income for the American dream: $114K
- Total annual cost of living: $57K
- Grocery costs per year: $8,699
- Average monthly mortgage cost: $1,965
35. Houston, Texas
- Household income for the American dream: $113K
- Total annual cost of living: $57K
- Grocery costs per year: $8,889
- Average monthly mortgage cost: $1,597
36. Philadelphia, Pennsylvania
- Household income for the American dream: $113K
- Total annual cost of living: $57K
- Grocery costs per year: $9,288
- Average monthly mortgage cost: $1,254
View More: here’s How Much You Need To Earn To Be ‘Rich’ in Every State
37. Omaha, Nebraska
- Household income for the American dream: $110K
- Total annual cost of living: $55K
- Grocery costs per year: $8,753
- Average monthly mortgage cost: $1,634
Living Affordably: Key Cities in the U.S. for Your Financial Future
Louisville, Kentucky
- Household income for the American dream: $106K
- Total annual cost of living: $53K
- Grocery costs per year: $8,789
- Average monthly mortgage cost: $1,464
That’s Interesting: 21 Affordable Small Cities To Retire on the East Coast
Columbus, Ohio
- Household income for the American dream: $105K
- Total annual cost of living: $53K
- Grocery costs per year: $8,952
- Average monthly mortgage cost: $1,509
Trending Now: What Salary Single People Need To Live Comfortably in 100 Major US Cities
San Antonio, Texas
- Household income for the American dream: $105K
- Total annual cost of living: $53K
- Grocery costs per year: $8,282
- Average monthly mortgage cost: $1,482
Learn More: 10 Home Features That Have Decreased the Most in Popularity (And How Much Homes with Them Cost)
Kansas City, Missouri
- Household income for the American dream: $103K
- Total annual cost of living: $52K
- Grocery costs per year: $8,771
- Average monthly mortgage cost: $1,388
Baltimore, Maryland
- Household income for the American dream: $101K
- Total annual cost of living: $50K
- Grocery costs per year: $8,880
- Average monthly mortgage cost: $1,059
Indianapolis, Indiana
- Household income for the American dream: $100K
- Total annual cost of living: $50K
- Grocery costs per year: $8,481
- Average monthly mortgage cost: $1,323
Check Out: 6 Key Signs a Housing Market Will Soon Have Massive Price Drops
El Paso, Texas
- Household income for the American dream: $99K
- Total annual cost of living: $50K
- Grocery costs per year: $8,336
- Average monthly mortgage cost: $1,324
Milwaukee, Wisconsin
- Household income for the American dream: $99K
- Total annual cost of living: $49K
- Grocery costs per year: $8,418
- Average monthly mortgage cost: $1,194
Oklahoma City, Oklahoma
- Household income for the American dream: $99K
- Total annual cost of living: $49K
- Grocery costs per year: $8,581
- Average monthly mortgage cost: $1,171
Tulsa, Oklahoma
- Household income for the American dream: $98K
- Total annual cost of living: $49K
- Grocery costs per year: $8,599
- Average monthly mortgage cost: $1,216
Read Next: 3 Best Florida Cities To Buy Property in the Next 5 Years, According To Real Estate Agents
American Dream Costs in Major U.S. Cities: A Closer Look
48. Wichita, Kansas
- Household income for the American dream: $95K
- Total annual cost of living: $48K
- Grocery costs per year: $8,608
- Average monthly mortgage cost: $1,134
49. Detroit, Michigan
- Household income for the American dream: $91K
- Total annual cost of living: $46K
- Grocery costs per year: $8,064
- Average monthly mortgage cost: $421
50. Memphis, Tennessee
- Household income for the American dream: $89K
- Total annual cost of living: $44K
- Grocery costs per year: $8,454
- Average monthly mortgage cost: $842
Methodology: This study by GOBankingRates assessed the 50 largest U.S. cities by population according to the U.S. Census American Community Survey. Cost-of-living indexes were obtained from Sperling’s BestPlaces, while average expenditures were drawn from the Bureau of Labor Statistics Consumer Expenditure Survey. Home value and mortgage data utilized the Zillow Home Value Index for January 2025 and Federal Reserve Economic Data. To find the income necessary for achieving the American Dream, the cost of living was doubled based on the 50/30/20 rule, which allocates 50% of household income to needs, 30% to discretionary expenses, and 20% to savings. All data is current as of March 4, 2025.
This article originally appeared on GOBankingRates.com: Salary Needed To Achieve the American Dream in the 50 Largest Cities
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
