Cities Where Americans Live the Most Outside of Their Means [2025 Data Study]

As affordability challenges grow across the U.S., many Americans find themselves spending far more than recommended on essential living costs. Adhering to the 50/20/30 budget rule — which advises limiting essential expenses to 50% of income toward basic needs like housing, groceries, transportation, and utilities, 30% toward wants, and 20% toward savings — is a distant reality for most.

This analysis explores the major cities where Americans are forced to live the furthest outside their means, shedding light on the regions with the most significant affordability challenges. By examining income levels, essential expenses, and the additional income required to meet budget recommendations, the findings reveal a stark reality about the financial pressures facing urban residents today.

15 U.S. Cities Where Americans Are Living Most Outside of Their Means

Living within the recommended 50/20/30 budget rule is an uphill battle for many Americans, particularly in certain cities where essential expenses consume the majority of their income. This section highlights the top 15 cities where residents are forced to live furthest outside of their means.

California dominates the rankings, with 7 cities in the top 10. Riverside, California, takes the top spot, where essential expenses exceed after-tax income by 25%. Residents need an additional $2,628 per month — equivalent to over $63,000 annually — to meet the 50% affordability guideline.

Other California cities like San Diego, Stockton, and Los Angeles follow closely, with essential expenses consuming between 80% and 125% of income. The high cost of housing is a key factor driving this financial strain.

Outside of California, Florida and New York also present significant challenges. Lakeland, Florida, ranks fifth, with essential expenses exceeding income by 2%. Orlando, Florida, follows closely, where residents spend 88% of their monthly income on basic needs.

New York City also ranks in the top 10, where essential expenses consume 82% of income. With high costs of living across multiple categories, New Yorkers face limited financial flexibility for savings or discretionary spending.

These findings reveal the regions where affordability challenges are most severe, particularly in high-cost areas like California, Florida, and New York.

Where “Needs” Leave No Room for Savings: U.S. Cities Exceeding the 50% Benchmark

In several U.S. cities, essential expenses consume an overwhelming percentage of residents’ income, far surpassing the recommended 50% threshold. This section highlights the cities where residents allocate the largest share of their monthly income to basic needs like housing, groceries, transportation, and utilities.

Riverside, California, tops the list again. Essential expenses account for an astounding 125% of the average resident’s after-tax income. This means residents, on average, are unable to cover their needs without dipping into savings, taking on debt, or sacrificing other financial priorities.

Following Riverside, McAllen, Texas, and Lakeland, Florida, rank second and third, with needs consuming 103% and 102% of income, respectively. In both cities, residents must consistently exceed their means just to cover basic living costs.

California continues to dominate the rankings, with cities like Stockton, Bakersfield, San Diego, and Fresno all requiring more than 90% of income to meet essential expenses. The state’s notoriously high cost of living, particularly in housing, drives much of this financial imbalance.

While California cities are prevalent on this list, affordability challenges extend nationwide. Orlando, Florida (88%), Honolulu, Hawaii (87%), and El Paso, Texas (85%) are among the cities where essential expenses consume the bulk of residents’ income. Even in Provo, Utah, and New York, New York, over 80% of monthly income is required to cover basic needs.

The data highlights a stark reality for residents in many cities, particularly in states like California, Florida, and Texas. Even cities with relatively moderate costs, like Ogden, Utah, and Augusta, Georgia, approach or exceed 80% of income for essential expenses.

These findings underscore the widespread affordability challenges across the U.S., where rising costs and income disparities push many Americans to live far beyond their financial means.

To see the full ranking and explore how your city compares, check out the chart below.

Methodology

This analysis explores the financial burden facing Americans in 100 cities by examining how much residents exceed the recommended 50% income allocation for essential expenses — or “needs.” Using median personal income data from BEA.gov, we calculated each city’s after-tax income as a baseline for affordability. Essential monthly costs were broken down into 4 key categories: rent (sourced from Zillow), groceries (based on Census Bureau data), transportation (calculated using the Center for Neighborhood Technology), and utilities and internet (derived from Expatistan and Numbeo). These figures combine to produce the average total monthly costs (needs) for each city.

To evaluate affordability, we assessed several key metrics: the extent to which essential expenses surpassed 50% of after-tax income, the additional annual income required to meet the 50% budget rule, and the percentage of income dedicated to essential costs in each city. This comprehensive approach provides a clear picture of the affordability challenges residents face across the U.S.

Final Thoughts

This analysis underscores the significant financial strain facing many Americans as they navigate rising costs and stagnant incomes. In cities across the country, essential expenses are consuming far more than the recommended 50% of income, leaving little room for savings or discretionary spending.

California cities dominate the rankings, highlighting the challenges posed by the state’s high housing costs. Other regions, like Florida and New York, also showcase significant affordability gaps. These findings reveal the cities where residents are living most beyond their means and underscore the importance of addressing the growing disparity between incomes and living costs.

As affordability continues to challenge millions, understanding these trends can help policymakers and individuals make informed decisions to foster financial stability.