$100,000 salary in Boston feels like $46,000, according to study
BOSTON - The statistics aren't necessarily surprising, but it got us thinking, nonetheless.
A recent study by SmartAsset found that making $100,000 a year in Boston feels more like bringing home $46,588. Factoring in taxes and cost of living factors like housing, energy, and transportation.
That put Boston ninth on the list that ranked New York City worst in the country for take home value.
Nora Yousif is a Senior Vice-President and Financial Advisor at RBC. "It's not surprising to me that people are feeling the crunch now more than ever before," Yousif said. "You mix all that together coupled with slowing wage growth, and you are inevitably going to be feeling this crunch than before."
The latest Census data from 2021 showed the median household income in Boston was $81,744. Again, that is household income and often reflects multiple salaries. That same Census report should 17.6% of Bostonians were considered living at or below the poverty line.
Financial experts suggested the housing crisis is crippling the financial freedoms for many adults. More money is heading toward essentials and less toward savings and investments.
Demetrios Salpoglou is the CEO of Boston Pads. The company tracks housing trends for developers and consumers. Salpoglou said Boston is experiencing high demand and low supply that is not keeping up with population growth.
"A lot of it is permitting process itself," said Salpoglou. "A lot of it is the cost of land is expensive. Some of it is the time it takes to get from inception to finished product. It's a long walk."
Boston Mayor Michelle Wu has proposed a rent increase cap to attempt to curb raising rates, but it's highly debated whether it would be successful.
Yousif advised that people could consider a side hustle and said the gig economy is booming now more than ever. She also advised folks to consider asking for salary adjustments when needed. Yousif pointed out it is often cheaper for your employer to keep you than hire someone new.