How much does it cost to live the ‘American Dream’ in PA? What one analysis says
Americans are consistently worried about inflation and the cost of living, and a recent analysis bears that out, finding the minimum household income needed to live comfortably in the country’s 50 largest cities is approaching six figures.
Drawing data from various sources, the analysis from finance website GoBankingRates puts the national minimum income needed at $89,000 annually, considering factors such as grocery cost and average mortgage expenses. The analysis drew data from Sperling’s BestPlaces, the U.S. Bureau of Labor Statistics Consumer Expenditure Survey and Zillow’s Home Value Index, among other sources.
What it means to live the “American dream” obviously varies between individuals, so in its analysis, GoBankingRates followed the 50/30/20 rule as a baseline assumption. The rule states 50% of household income should go to essentials, 30% to discretionary spending and 20% to savings and debt repayment.
Philadelphia was included GoBankingRates’ analysis. Here’s a look at the costs that inform that ranking and how the country’s largest cities compare.
How much does it cost to live comfortably in Philadelphia, PA?
Philadelphia falls roughly near the middle of the pack in GoBankingRates’ cost-of-living analysis, ranking 36th. That makes it a much more affordable alternative than the most expensive cities, such as San Jose, Calif., at No. 1.
Philadelphia is roughly comparable to Houston, Texas, and Omaha, Neb., sitting just between the two in terms of cost of living.
GoBankingRates puts the minimum household income needed to live comfortably in Philadelphia at $113,259. The baseline cost of living is half of that at $57,000. Living the “American dream” under the website’s analysis means earning double the annual cost of living. Its analysis considers expenses for households with married couples who have children.
The median household income in Pennsylvania stands at $73,824, according to 2023 estimate from the U.S. Census Bureau’s American Community Survey. For married couples specifically, the median household income in Pennsylvania is higher at $111,664, also per 2023 Census data, the latest available.
In Philadelphia, Census data puts the median household income at $60,302.
For the purpose of the analysis, grocery costs per year in Philadelphia amount to $9,288. The average monthly mortgage cost is $1,254.
How do other major cities compare to Philadelphia on the ‘American dream?’
Here are the top 10 large U.S. cities where the living the “American dream” has the highest income threshold, according to GoBankingRates:
1. San Jose, Calif.: $319,000
2. San Francisco: $297,000
3. San Diego, Calif.: $242,000
4. Los Angeles: $234,000
5. New York City: $220,000
6. Long Beach, Calif.: $215,000
7. Seattle: $212,000
8. Oakland, Calif.: $205,000
9. Boston: $199,000
10. Washington, D.C.: $187,000