AUSTIN, Texas – A new study from Upgraded Points found that median wages fail to keep pace with the cost of living in most parts of the United States, leaving many Americans struggling to cover basic expenses.
The study compared median annual wage data from the U.S. Bureau of Labor Statistics with living wage estimates from the Economic Policy Institute’s Family Budget Calculator for all 50 states and the nation’s 100 largest cities. Researchers also surveyed more than 2,400 U.S. adults about income, spending and saving habits.
According to the survey, 45% of respondents said they do not earn enough to cover basic living expenses, while another 35% reported earning just enough to get by.
Respondents said they need an annual income of about $50,000 to cover basic necessities, $70,000 to live comfortably and $100,000 to feel financially well off.
The survey also found that 65% of Americans said rising costs have made everyday expenses more difficult to afford, while 78% reported reducing discretionary spending.
Among the nation’s largest metropolitan areas, only 35 of the 100 largest cities have a median wage that exceeds the estimated cost of living. New York City had the largest gap, with a median annual wage of $61,430 compared with a living wage of $83,262, a difference of nearly $22,000.
At the state level, Hawaii had the nation’s largest gap between median wages and the estimated living wage, followed by California, New York, Georgia and Florida.
“The gap between earnings and the cost of living looks different depending on where you live,” said Keri Stooksbury, editor-in-chief at Upgraded Points. “Our goal was to highlight where that gap is widest, giving people a clearer picture of the financial realities facing households across the country.”
SOURCE: Upgraded Points