A generation ago, $100,000 was considered an upper-middle class income. The median household income in the U.S. in 1984 was just under $59,000. Today, it is about $81,000.
In the D.C. metro, the median household income is currently just over $106,000. But for a small family living in the region, that doesn’t pay the bills.
LendingTree calculated household costs for a family of three, including housing, healthcare, transportation, childcare, taxes, utilities, food and entertainment, and modest monthly savings. Outside of mortgage payments, it does not include any debt servicing costs.
In the D.C. metro, a household income of $100,000 comes up an average $1,434 short each month to cover those expenses.
LendingTree’s analysis found that in one of every four large U.S. metros, a monthly income for a family of three earning $100,000 a year is not enough to cover their basic expenses. It says that leaves many of American families broke, even before putting any money to paying down debt.
The share of cities where $100,000 falls short for a small family’s expenses has risen from 16% in 2023 to 25% now.
The biggest gap is in San Jose, California, where LendingTree says a $100,000 household income is an average $2,207 a month short. At the opposite end, McAllen, Texas, is the most affordable, with a family of three that earns $100,000 a year having an average of $1,770 a month left over.
In addition to the Bay Area, Boston, Honolulu and the Los Angeles area rank high for the $100,000 gap. The D.C. metro ranks No. 6 on the list.
LendingTree’s full list of metros where $100,000 does, or does not cover monthly expenses, is online.
