When is a $71,000 salary better than an $86,000 salary? When you adjust for cost of living.
When is a $71,000 salary better than an $86,000 salary? When you adjust for cost of living.
When you’re weighing job offers in a new city, the highest salary is a critical deciding factor. But you also think about whether you want to live there—and how affordable the city is.
The average salary in San Francisco is $86,212, according to CashNetUSA, which sounds pretty good until you look at rents and home prices there. When adjusted for cost of living, it’s like making $22,114 less. You have to wonder: Is it enough? Will you be able to cover expenses, have a life, and set money aside for retirement?
By finding the average starting salary in cities around the country, then adjusting each for cost of living, personal finance site CashNetUSA found the cities where salaries go furthest. Small cities tend to be less expensive, but salaries tend to be lower. The average worker in a city with a population under 250,000 effectively makes an extra $5,000 when living costs are factored in, their study found.
So when is a $71,000 salary better than an $86,000 salary? When you compare San Francisco to Alexandria, Va. Alexandria tops this list of cities where salary goes the furthest: the city has low unemployment and an average salary of $71,572. Adjusted for cost of living, that’s like making $83,809, according to their calculations. That’s $12,237 more.
To determine the cities where the average salary goes furthest, CashNetUSA pulled cost of living data from the Bureau of Economic Analysis, including regional price parity values by metro, and city salary data from Payscale and then adjusted salaries according to the cost of living data. These are the top cities to stretch your salary, in order of the highest adjusted salaries.
1. Alexandria, Va.
Salary adjusted for cost of living: $83,809
Avg. salary: $71,572
2. Kokomo, Ind.
Salary adjusted for cost of living: $76,862
Avg. salary: $65,640
3. Santa Fe, N.M.
Salary adjusted for cost of living: $74,567
Avg. salary: $72,330
4. Columbus, Ga.
Salary adjusted for cost of living: $73,033
Avg. salary: $64,708
5. Huntsville, Ala.
Salary adjusted for cost of living: $71,194
Avg. salary: $63,363
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6. Durham-Chapel Hill, N.C.
Salary adjusted for cost of living: $70,725
Avg. salary: $67,048
7. St. Louis
Salary adjusted for cost of living: $69,833
Avg. salary: $62,920
8. Columbus, Ind.
Salary adjusted for cost of living: $69,625
Avg. salary: $61,758
9. Fond du Lac, Wis.
Salary adjusted for cost of living: $69,624
Avg. salary: $61,130
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10. Charlotte-Concord-Gastonia, N.C.
Salary adjusted for cost of living: $69,265
Avg. salary: $65,386
11. Rochester, Minn.
Salary adjusted for cost of living: $68,746
Avg. salary: $63,865
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12. Elkhart-Goshen, Ind.
Salary adjusted for cost of living: $68,510
Avg. salary: $60,837
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13. Birmingham-Hoover, Ala.
Salary adjusted for cost of living: $67,418
Avg. salary: $59,530
14. Morgantown, W.V.
Salary adjusted for cost of living: $67,046
Avg. salary: $60,207
15. Raleigh-Cary, N.C.
Salary adjusted for cost of living: $66,788
Avg. salary: $64,183
16. Atlanta-Sandy Springs-Alpharetta, Ga.
Salary adjusted for cost of living: $66,758
Avg. salary: $65,356
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17. Dallas-Fort Worth-Arlington, Texas
Salary adjusted for cost of living: $66,728
Avg. salary: $67,529
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18. Indianapolis-Carmel-Anderson, Ind.
Salary adjusted for cost of living: $66,543
Avg. salary: $60,621
19. Bloomington, Ill.
Salary adjusted for cost of living: $66,316
Avg. salary: $60,746
20. Hartford-East Hartford-Middletown, Conn.
Salary adjusted for cost of living: $66,214
Avg. salary: $67,869
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21. Canton-Massillon, Ohio
Salary adjusted for cost of living: $65,976
Avg. salary: $56,212
22. Grand Forks, N.D.
Salary adjusted for cost of living: $65,649
Avg. salary: $58,690
23. Boulder, Colo.
Salary adjusted for cost of living: $65,607
Avg. salary: $70,003
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24. San Jose-Sunnyvale-Santa Clara, Calif.
Salary adjusted for cost of living: $65,389
Avg. salary: $82,848
25. Midland, Mich.
Salary adjusted for cost of living: $65,278
Avg. salary: $58,163
26. San Antonio-New Braunfels, Texas
Salary adjusted for cost of living: $65,253
Avg. salary: $60,881
27. Dayton-Kettering, Ohio
Salary adjusted for cost of living: $65,137
Avg. salary: $57,060
28. Austin-Round Rock-Georgetown, Texas
Salary adjusted for cost of living: $65,057
Avg. salary: $64,602
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29. Nashville-Davidson-Murfreesboro-Franklin, Tenn.
Salary adjusted for cost of living: $64,750
Avg. salary: $61,124
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30. Lansing-East Lansing, Mich.
Salary adjusted for cost of living: $64,683
Avg. salary: $58,474
Check out the full list, and compare cities at CashNetUSA.