new york

New York employees making $312,000 need to make almost 3x less in Houston to have the same purchasing power

Unusual Whales

Jun 2, 2023 • 1 min read

Per Bloomberg

New York has been among some of the most expensive cities in the US, and recently, it was reported that those working in the city would need to make 3x less to have the same purchasing power as they would have had in Houston. A New York earner making $312,000 and a Houston earner making $125,00 reportedly had the same purchasing power.

It was also noted that to bring home $100,000 after taxes and cost of living adjustments, those living in the three most expensive cities had to make over $300,000. This was reportedly true for those living in New York, San Francisco, and Honolulu.

SmartAsset analysis studied the Council for Community and Economic Research, which showed that in the priciest cities in the country, residents needed to make over $180,000 for around $100,000 mark purchasing power.

It was also reported that California cities had the highest gross income requirements of any state. In the Bay Area, for example, it was noted that people had to make at least $147,000 to experience middle-class comfort.

Although Miami was among the places with a high cost of living, it was revealed that lower taxes made it more affordable to live there compared to Chicago, Sacramento, and Baltimore.

It was also noted that the increase in remote work has resulted in professionals considering relocating to certain places like Texas and Florida. In these places, the cost of living and taxes were reportedly lower.

In mid-April, Bloomberg reported the different cities that had the lowest take-home pay for a $100,000 salary. It was found that in New York City, a $100,000 salary had a take-home pay of just $35,791 while in Honolulu, Hawaii, the same salary had a take-home pay of just $36,026.

See flow at unusualwhales.com/flow.

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