CNBC reports that Los Angeles is the least affordable major U.S. metro, while Virginia Beach, Va., is the most affordable.
Cities were ranked by GOBankingRate under the assumption that to live comfortably, necessities, such as housing, healthcare, and food, should make up 50 percent of a budget, while 30 percent should go to discretionary spending and 20 percent to savings.
The median income in Los Angeles is about $54,000, putting it about $20,700 short on average of even covering average costs in the “necessary” category. San Francisco came in second, where the average homeowner is $18,900 short of affording necessities. Interestingly, renters in San Francisco have about a $14,200 surplus on average after paying for necessities, but that’s still not nearly enough to reach the comfort level ratio.
Renters in Virginia Beach spend $43,700 on the basics, giving the average household a cushion of $26,800. For homeowners, who spend about $41,600 on necessities, the surplus is about $28,900.
Living comfortably there also is less out of reach. Homeowners would need about $83,200, which is $12,700 above the median income. For renters, the average household falls short of the $87,400 by about $16,900.
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