How much does the American dream cost in CA? Here’s what you need to earn in 2025
How close are you to living the American dream in California?
You’d need to earn more than $100,000 a year to live comfortably in the Golden State in 2025, according to a new study by GoBankingRates.
The personal finance website looked at expenses, including monthly mortgage payments and annual grocery and child care costs, to determine “how achievable the American dream is” in the 50 largest U.S. cities.
“For several years, many Americans have said they need to earn six-figure salaries to feel financially stable and successful,” GoBankingRates writer Heather Taylor wrote in a March 11 article titled, “Salary Needed To Achieve the American Dream in the 50 Largest Cities.”
“This amount of money is quickly becoming a non-negotiable factor for enjoying a good life,” Taylor added
You’d have to earn at least $102,000 a year to enjoy a comfortable lifestyle in the United States’ biggest cities, the GoBankingRates study found.
That’s more than the typical American household earns a year. The median household income in the United States was $80,610 in 2023, according to the U.S. Census Bureau.
What is the American dream?
Historian James Truslow Adams coined the phrase “American dream” in his 1931 book “Epic of America,” according to Britannica.com.
Adams described it as “a dream of a social order in which each man and each woman shall be able to attain to the fullest stature of which they are innately capable ... regardless of the fortuitous circumstances of birth or position.”
Modern interpretations of the American dream have included owning a house, starting a family and having a stable job or owning a business, Britannica said.
How much does it cost to live comfortably in California?
GoBankingRates analyzed the annual costs of living in nine major California cities to determine how much residents would need to earn to achieve the American dream.
San Francisco had the highest income requirements of any large California city, ranking No. 4 in terms of living expenses at major U.S. cities.
You’d need annual earnings of $172,340 to live comfortably in the Bay Area city, according to the GoBankingRates study.
San Jose had the second-highest income requirements in the Golden State, the study found, with households needing to earn a salary of $167,958 a year to reach American dream status.
In Oakland, families have to bring in $160,162 annually to live the American dream, the study said.
To live comfortably in Los Angeles, you’d need an annual salary of $159,612, compared to $157,613 in Long Beach and $152,369 in San Diego.
A Sacramento household would need to earn $150,850 to achieve the American dream.
Fresno households would need annual wages of $144,090, GoBankingRates said, and Bakersfield households would need to earn $143,741 a year.
The average annual median income in California is $96,334, according to the most recent Census Bureau data.
What annual income do you need in US in 2025?
According to the GoBankingRates study, Washington, D.C., had the highest salary requirements of any major city in the United States for achieving the American dream.
You’d have to earn an annual income of $189,306 to live comfortably in the nation’s capital.
The U.S. city with the lowest income threshold was Wichita, Kansas which requires $102,059 a year to live the American dream.
Here are the highest salaries required to live the American dream in 10 U.S. cities:
- Washington, D.C. $189,306
- Boston, $175,628
- New York City, $173,006
- San Francisco $172,340
- San Jose $167,958
- Oakland $160,162
- Los Angeles $159,496
- Long Beach $157,613
- Minneapolis $152,863
- San Diego $152,369
How did GoBankingRates come up with salary requirements?
To determine how much U.S. residents need to earn to achieve American dream status, GoBankingRates analyzed the largest 50 cities by population using data from sources including Census Bureau, U.S. Bureau of Labor Statistics and the Economic Policy Institute.
GoBankingRates then applied the cost of living for homes with married couples with children to calculate the annual salaries needed to achieve the American dream.
This story was originally published March 26, 2025 at 5:00 AM with the headline "How much does the American dream cost in CA? Here’s what you need to earn in 2025."