Your wages will stretch the furthest in these major US metros, study finds
(NEXSTAR) – Considering moving to a new city for work? Don't forget to research the cost of living before accepting a new salary.
A new study by finance site Bankrate found that, after adjusting for the cost of living, the average worker's buying power only grew (compared to the other cities) in a handful of large metros.
The San Francisco metro area, for example, had the highest median household income in 2023 ($127,792), according to the U.S. Census Bureau. The cost of housing, food, and other staples is equally high, however, and undercuts the average worker's buying power by 15.4%, the most of any major metro, according to the study.
See the top five metros where the cost of living eats up the largest percentage of workers' wages, according to Bankrate, below:
| Metro Area | Annual mean wages before cost-of-living adjustment | Annual mean wages after cost-of-living adjustment | Change in buying power after cost of living adjustment |
| San Francisco-Oakland-Fremont, CA Metro Area | $97,460 | $82,453 | -15.4% |
| Los Angeles-Long Beach-Anaheim, CA Metro Area | $73,400 | $63,550 | -13.4% |
| Seattle-Tacoma-Bellevue, WA Metro Area | $86,520 | $76,566 | -11.5% |
| New York-Newark-Jersey City, NY-NJ Metro Area | $82,050 | $72,933 | -11.1% |
| Miami-Fort Lauderdale-West Palm Beach, FL Metro Area | $63,380 | $56,691 | -10.6% |
Since the cost of living in cities with higher average wages tends to be greater, and vice versa, is there a balance that might effectively allow one's wages to go further?
Bankrate found that after adjusting the average wage for the cost of living, only San Antonio, St. Louis, Charlotte and Detroit could boast an increase in buying power, compared to other metros:
| Metro Area | Annual mean wages before cost-of-living adjustment | Annual mean wages after cost-of-living adjustment | Change in buying power after cost of living adjustment |
| San Antonio-New Braunfels, TX Metro Area | $57,700 | $61,580 | 6.7% |
| St. Louis, MO-IL Metro Area | $61,910 | $64,289 | 3.8% |
| Charlotte-Concord-Gastonia, NC-SC Metro Area | $64,440 | $66,433 | 3.1% |
| Detroit-Warren-Dearborn, MI Metro Area | $64,360 | $65,673 | 2.0% |
| Houston-Pasadena-The Woodlands, TX Metro Area | $63,510 | $63,383 | -0.2% |
“I don’t want to be broke in a sexy city," 30-year-old Yusuf Benallal told the Wall Street Journal about his decision to move from Miami to Charlotte. "I want to be thriving in a mediocre city."
A 2024 study by payroll provider ADP appears to support Benallal's decision to eschew cities like Los Angeles, New York and Chicago for smaller cities that boast active hiring, affordability and solid salaries.
ADP researchers looked at 55 U.S. metros and found that the average wage for graduates with a four-year degree, when adjusted for cost of living, went furthest in Raleigh, North Carolina; Austin, Texas; Baltimore; Atlanta; and Charlotte, North Carolina.
While the biggest jump in buying power would come from maintaining one's salary and moving to a cheaper city, that is not always possible, especially when changing companies.
So what should go into the decision-making process?
Career coach Melissa Fleury recommends consulting a cost-of-living calculator tailored to a prospective city to see how the base salary and bonuses would stack up against other metros. Fleury cautioned that there can be hidden costs such as transportation, childcare and lifestyle expenses.
"You’ve got to make sure you like the area, and you’d be willing to perhaps stay there," Lynn Berger, a New York City-based career counselor and coach told Bankrate. "If possible, before buying a home or a condominium, live there a little bit without any financial ties or responsibilities."