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Think
you could name some of the best cities in which to live and work
in the U.S.? Is Portsmouth, Ohio on your list? How about Rock Island,
Illinois? Well they should be. They may be unlikely candidates because
they don't have the same allure of the glamorous cities like New
York or L.A. But when judged on their salaries and cost of living,
they are among the top 5 metro areas out of more than 300 across
the U.S. analyzed recently by Salary.com. They are also not the
only midwestern cities that fared well. According to our analysis,
many of the best cities were in the Midwest while the worst were
on the coasts.
The
more likely candidates for your top 5 would probably be the more
well-known, fast paced cities of California or the historic business
hubs of the Northeast, correct? Surprisingly, however, these don't
even show up in the top 30, but instead are heavily present in the
worst. Nine out of the top 10 worst metro areas for your paycheck
are located in the West or Northeast. The map below shows the distribution
of the top 5 best and worst metro areas to live and work in across
the country.
Our
Methodology
To determine the top 5 best and worst metro regions we looked at
the cost of living and the cost of wage of 317 metro areas in the
United States. Cost of living is defined as how much it would cost
to live in a given city, based on the prices of various goods and
services including: housing, food, clothing, taxes, healthcare,
etc. Cost of wage measures how much employers typically pay as compared
to the national average. Taking into account these two measures
simultaneously you can identify cities in which your dollars will
go farther; namely cities with a low cost of living and a high cost
of wage, due to the fact that employers typically pay more there,
and goods would typically cost you less. On the other hand, an area
with a high cost of living and a lower cost of wage would easily
be identified as an area where your dollar would not go as far.
Worst
Metro Areas to Live and Work In
Ever
dream of living in New York City? Strolling down Madison Avenue,
catching a Broadway show? Well if you're a stickler for making ends
meet, you might want to rethink that dream. New York is the least
affordable metro area when we calculate both its average salaries
and cost of living and compare those to our national average indexes.
But you make more money in New York, right? Well, yes and no. On
paper your salary may be higher, but does that really mean it's
more? Employers in New York typically pay 15.5% higher than the
national average, BUT the cost of living in New York is 94% higher.
This means that an average worker currently earning $50,000/yr in
the average U.S. city would have to earn approximately $37,000 more
a year in New York to maintain his or her standard of living. A
$37,000 dollar raise is a hard thing to come by, even in the Big
Apple.
Stamford,
CT, San Francisco, San Jose, and San Diego, California all join
New York as the top 5 worst cities to spend your salary in the U.S.
Best Metro Areas to Live and Work In
So New York and a whole lot of California are no longer cities
among your top choices, but then what is? How about Saginaw, Michigan?
Picture yourself strolling along the banks of the Tittabawassee
River or watching Fourth of July fireworks from the best seat in
the house on Ojibway Island. If Saginaw still doesn't sound like
the city for you, consider this: of the cities we studied, it has
the lowest cost of housing in the nation. In fact a lot of things
cost less in Saginaw, not just the housing. The cost of living in
Saginaw, Michigan is 14% below the national average and the cost
of wage is 2% above. Therefore working and living in Saginaw you
would most likely see an increase in pay, and a decrease in the
dollar amount spent on the services and goods to maintain your standard
of living. Maybe Saginaw is moving up on your list…..
Portsmouth,
OH, Fairbanks, AK, Rock Island, IL, and Corpus Christi, TX are also
among the top 5 best places to earn and spend your paycheck in the
country.
The
chart below reports the 5 best and worst metro areas based on each
area's cost of living and cost of wage as compared to the national
average.
Reality
Check
Fairbanks, Alaska may be one of the best places to get the most bang
for your buck, but living in Alaska also requires adjusting to the
fact that more than 4 hours of daylight on New Year's Day is cause
for celebration. The reality is that how much money you will save,
or spend, are major concerns, but there are also many other factors
to consider before choosing the best place for you, and your paycheck.
To find out how changing cities could affect the money in your wallet,
visit Salary.com's Cost of Living Wizard at http://costoflivingwizard.salary.com
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Sarah Lyman, Compensation Analyst
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