News Summary
A recent study reveals that Phoenix and Mesa rank among the top U.S. cities where a six-figure income is necessary to live comfortably. In Phoenix, a household income of $131,868 is required, while Mesa is slightly lower at $130,947. Costs such as housing and childcare remain high, making financial planning essential for residents and newcomers. Tucson also offers a more affordable option with a necessary income of $124,748. As living costs rise, aspirations for the American Dream come with financial responsibilities.
Phoenix and Mesa: Where Six-Figure Incomes Are the New Normal for the American Dream
If you’ve ever dreamt of living the American Dream in the beautiful Valley of the Sun, you may want to sit down. A recent study revealed that both Phoenix and Mesa rank among the top 25 U.S. cities where you’ll need a six-figure salary to make that dream a reality. That’s right—living comfortably in these Arizona cities isn’t as inexpensive as many might think.
Phoenix: Rising Costs in the Desert
Coming in at No. 22 on the list, residents of Phoenix need a household income of $131,868 to keep up with the city’s living costs. The annual cost of living here is pegged at around $65,950. What does that look like in day-to-day expenses? Well, grocery bills can add up quickly, with average annual grocery costs totaling about $8,816.
And let’s not forget one of the biggest monthly expenses—the mortgage! For a typical home, you can expect to pay about $2,485 each month. If you’re parenting little ones, brace yourself: the childcare costs in Phoenix are quite hefty, amounting to $27,777 per year. So, if you’re thinking about making the move, a solid financial plan is more important than ever!
Mesa: Close Neighbor, Comparable Costs
Not far behind, we have Mesa ranking at No. 24. Here, the required household income is $130,947, just a shade lower than Phoenix! The annual cost of living in Mesa is estimated at $65,473, slightly less than its bustling neighbor to the west. When it comes to groceries, Mesa’s yearly expenses are close at about $8,807, which is only a minor difference from Phoenix.
However, the average monthly mortgage payment in Mesa is a little higher at $2,617, making budgeting an essential game plan if you’re planning to buy. And just like Phoenix, don’t forget that child care will run you about $27,777 annually. It looks like the American Dream comes with quite the commitment in this part of Arizona!
Tucson: Another Arizona Gem
If you’re thinking of exploring other parts of Arizona, Tucson ranks at No. 27. To achieve the American Dream here, households need to bring in about $124,748 annually. The overall living costs are slightly lower at around $62,374, with groceries averaging $8,653. Mortgages are affordable too, sitting around $1,983 each month. Once again, child care costs remain consistent across all three cities at $27,777 a year.
What About Other U.S. Cities?
If you think it’s tight in Arizona, compare it with places like Washington, D.C., which requires a staggering household income of $189,306 for the American Dream. Boston and New York City follow closely behind, needing $175,628 and $173,006 respectively. On the flip side, Wichita, Kansas, offers a much more budget-friendly environment, only needing $102,059 to enjoy the comforts of life.
In pulling these figures together, GoBankingRates took a look at average annual expenses and doubled those numbers to estimate the income necessary for a more comfortable lifestyle.
The Bottom Line
So, what does this all mean for residents and hopeful movers to Phoenix and Mesa? It’s clear living the American Dream here is feasible but comes with financial expectations that require a bit of planning! As revealed by the U.S. Census Bureau, the real median household income in 2023 is about $80,610, which is a bit shy of what you’d need in Phoenix or Mesa. If you’re eyeing that American Dream, it’s time to start crunching some numbers!
Deeper Dive: News & Info About This Topic
- AZ Family: Salary Needed for American Dream in Phoenix
- Wikipedia: Cost of Living
- Lever News: The American Dream
- Google Search: American Dream Financial Planning
- ARCARacing: American Dream in Phoenix
- Google Scholar: American Dream Housing Costs
- KTAR News: Amazing Arizonans – Michael Zistatsis
- Encyclopedia Britannica: American Dream
- Washington Post: Apprenticeships and Government Investment
- Google News: Cost of Living Phoenix
