This Bay Area city ranks most expensive in the U.S. to ‘live comfortably’

The Brief

• San Jose has the highest salary needed to live comfortably in the U.S., a new study found.

• The South Bay city surpassed New York, which topped the list last year.

• Other Bay Area cities ranked among the most expensive.

SAN JOSE, Calif. – A new analysis ranked San Jose as the U.S. city with the highest salary needed to “live comfortably.”

By the numbers

The Bay Area’s largest city surpassed New York for this distinction, with San Jose requiring $147,430 for a single adult to live comfortably.

For a family of four, that amount came to $371,571.

The analysis, by financial technology company SmartAsset, found the median household income in San Jose stood at $136,229.

New York, which topped the list last year, requires $136,656 for a single adult, and $306,093 for a family of four, to live comfortably.

Dig deeper

SmartAsset reviewed 100 of the largest U.S. cities as part of its analysis, with researchers applying the popular money management method known as the “50/30/20 budget rule” for both single adults and families of four.

That rule provides a financial framework of allocating 50% of income to necessities, like food and housing, 30% of income to wants— those extra costs like travel and entertainment, and 20% to savings and debt repayment.

SEE ALSO:This East Bay city ranked worst in the U.S. for first-time homebuyers

“Large U.S. cities are ranked based on the projected full-time gross salary needed to cover basic expenses, occasional splurges and allow savings for long-term goals,” SmartAsset said.

Other Bay Area cities came in among the top when it came to salary requirements to “live comfortably.”

Fremont, which didn’t even make it on the top 100 list last year, had the 88th highest salary needed for comfortable living for a single adult, requiring $124,592.

For a family of four, $343,949 is needed, the fifth-highest amount in the country. The median household income in Fremont was $170,934.

Oakland tied at 88th with singles needing $124,592 a year to live comfortably. It matched Fremont for the amount needed for a family of four.

The city’s median income was significantly lower though, at $96,828.

San Francisco got a little less expensive for singles, falling from its 92nd slot last year and landing in 87th place, with $121,930 required for a single adult.

For a family of four, it was the 2nd most expensive city, behind San Jose, requiring a salary of $366,829 to live comfortably. The median income in San Francisco was $126,730.

As for the least expensive city in the U.S. for adults, Indianapolis received that distinction. “It takes an estimated salary of $85,197 to comfortably support a single adult in the capital of Indiana, the lowest among large U.S. cities,” SmartAsset said.

And for a family of four, Memphis, Tennessee had the lowest household salary needed, calculated at $198,349, to live comfortably.