The cost of living in the United States continues to rise faster than wages in many regions, leaving millions of workers struggling to cover basic expenses. While the national average wage in 2024 hovers around $63,795, what that income actually buys you varies dramatically depending on where you live. From rent and groceries to taxes and transportation, the gap between earnings and expenses is widening—and Americans are getting creative to bridge it.
This article breaks down average wages by state, cost-of-living pressures, and the strategies people are using to survive and stabilize their finances.
Average Wage by State: The Best and Worst Earners
While federal data updates frequently, recent averages (rounded estimates based on BLS and state-level reports) show clear divides:
High-Wage States
- Massachusetts – ~$76k
- Washington – ~$74k
- California – ~$72k
- New York – ~$71k
These states offer higher salaries but also some of the nation’s highest costs of living, which severely offsets income advantages.
Middle-Tier Wage States
- Texas – ~$60k
- Florida – ~$58k
- Georgia – ~$57k
- Ohio – ~$56k
These areas can be manageable depending on metropolitan vs. rural living.
Lowest-Wage States
- Mississippi – ~$48k
- West Virginia – ~$50k
- Arkansas – ~$51k
Lower wages here often coincide with lower costs, though rising housing and healthcare expenses still strain household budgets.
Cost of Living by State: Where Money Stretches—and Where It Doesn’t
Costs vary widely depending on housing, insurance, energy, and food prices.
Most Expensive States
- Hawaii
- California
- New York
- Massachusetts
- Colorado
A single adult in California, for example, often needs $70k–$80k just to cover basic expenses in metro areas.
Most Affordable States
- Mississippi
- Arkansas
- Alabama
- Oklahoma
- Kansas
In these states, a single adult can often meet essentials on $40k–$50k, depending on location.
How Americans Are Surviving the Wage–Cost Imbalance
Despite rising expenses, most workers are finding ways to stay afloat. Here’s how.
1. Taking on Secondary or Part-Time Jobs
Growing numbers of Americans work:
- Evening retail shifts
- Food delivery (DoorDash, Uber Eats)
- Rideshare services
- Online tutoring
- Bar shifts on weekends
This often adds $500–$1,200 per month to their income.
2. Freelancing or Side Gigs
The largest growth is in digital side work:
- Graphic design
- Virtual assistance
- Social media management
- Content writing
- Coding or web maintenance
- Photography and videography
Platforms like Upwork, Fiverr, and Toptal make this accessible.
3. Renting Out Assets
- Spare rooms (Airbnb)
- Vehicles (Turo)
- Tools or equipment (Fat Llama)
This can bring in hundreds monthly with minimal time investment.
4. Relocating for Remote Work
Employees increasingly move from high-cost states like California or New York to:
- Texas
- Florida
- Tennessee
- North Carolina
- Ohio
Keeping a big-city salary while living in a cheaper area can save $10k–$25k+ per year.
5. Cutting Discretionary Spending
Common adjustments:
- Canceling subscriptions
- Cooking at home
- Switching from brand-name to generic goods
- Downsizing apartments or choosing roommates
6. Learning In-Demand Skills for Higher Pay
Americans are investing in:
- AI tools
- Tech certifications
- Digital marketing
- Cybersecurity
- Skilled trades (electrician, welding, HVAC)
These skills frequently command $70k–$100k+ salaries without requiring a traditional four-year degree.
State-by-State Income & Cost-of-Living Table
| State | Approx. Median / Avg Household Income (2024) | Cost-of-Living Index (U.S.=100) |
| Alabama | ~$65,560 | ~88 |
| Alaska | ~$91,260 | ~126 |
| Arizona | ~$84,700 | ~113 |
| Arkansas | ~$64,840 | ~90–91 |
| California | ~$100,600 | ~137–142 |
| Colorado | ~$106,500 | ~104 |
| Florida | ~$75,630 | ~102–103 |
| Georgia | ~$81,210 | ~92 |
| Hawaii | ~$98,240 | ~184–193 |
| Illinois | ~$84,210 | ~95 |
| Iowa | ~$85,480 | ~90 |
| Kansas | ~$87,690 | ~90–91 |
| Kentucky | ~$64,790 | ~92 |
| Louisiana | ~$60,740 | ~93 |
| Maryland | ~$109,700 | ~115 |
| Massachusetts | ~$113,900 | ~149–150 |
| Michigan | ~$79,460 | ~90 |
| Mississippi | ~$55,980 | ~87–88 |
| Missouri | ~$78,390 | ~88–90 |
| Montana | ~$81,920 | ~96 |
| Nebraska | ~$86,140 | ~92–93 |
| Nevada | ~$80,590 | ~99–103 |
| New Jersey | ~$103,500 | ~115 |
| New Mexico | ~$64,140 | ~94 |
| New York | ~$86,830 | ~134–148 |
| North Carolina | ~$67,220 | ~98 |
| North Dakota | ~$88,080 | ~91 |
| Ohio | ~$80,520 | ~95 |
| Oklahoma | ~$65,310 | ~85–86 |
| Oregon | ~$89,700 | ~112–113 |
| Pennsylvania | ~$80,060 | ~97–98 |
| Rhode Island | ~$92,290 | ~109–110 |
| South Carolina | ~$76,780 | ~94–95 |
| South Dakota | ~$79,850 | ~97 |
| Tennessee | ~$75,860 | ~90 |
| Texas | ~$81,490 | ~92–92.5 |
| Utah | ~$104,000 | ~100–103 |
| Vermont | ~$85,260 | ~113–114 |
| Virginia | ~$97,720 | ~101–102 |
| Washington | ~$97,500 | ~112–114 |
| West Virginia | ~$63,150 | ~89–90 |
| Wisconsin | ~$82,560 | ~99–100 |
| Wyoming | ~$78,680 | ~97–98 |
* Income values are “real median household income (2024, inflation-adjusted dollars)” from Federal Reserve / Census data. FRED+1
Cost-of-living index approximates relative cost compared to U.S. average (100 = national average) based on housing, groceries, utilities, etc. World Population Review
What this table shows — and its limitations
- Where index is below 100: income goes farther. States like Mississippi, Arkansas, Oklahoma, and Kansas often see lower costs — meaning even modest incomes stretch further.
- Where index is high: even a relatively high income can feel tight. Places like California, Massachusetts, Hawaii — strong incomes but high expenses — often cut deeply into disposable income.
- Income alone ≠ comfort — someone earning $100 K in a high-cost state might have less purchasing power than someone earning $60 K in a low-cost state.
Limitations: These numbers don’t guarantee actual “livable” income — because individuals vary (single vs family, housing type, loans, healthcare, taxes, lifestyle). The cost-of-living index is a broad average and doesn’t reflect local city variation (e.g. rural vs major metro).
FAQ
Which states give you the best value for your income?
Texas, Tennessee, Kansas, and Oklahoma often provide the best combination of reasonable wages and affordable living.
Which expenses hurt budgets the most?
Housing, healthcare, and transportation make up over 60% of typical household spending.
What’s the easiest side hustle to start?
Gig apps (delivery, rideshare) or online freelance work.
Is moving to another state worth it?
If your job is remote or transferable, moving to a lower-cost state can dramatically increase disposable income.