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Living "Comfortably" Is Getting More Expensive — Everywhere

Living comfortably as a single adult in the U.S. is no longer just about paying rent and buying groceries. It’s now about financial resilience — being able to cover essentials, plan for the future, and enjoy life without drowning in debt. But in 2025, this version of financial stability comes with a steep price tag.

According to a new study by SmartAsset, which analyzed data from the Massachusetts Institute of Technology’s Living Wage Calculator, a single adult in West Virginia, the most affordable state, still needs to earn at least $80,829 annually just to live comfortably. That figure might surprise many, given that the median individual income in the U.S. hovered just under $62,000 in late 2024, based on data from the Bureau of Labor Statistics.

Meanwhile, at the top of the list sits Hawaii, where a single adult would need to bring in a minimum of $124,467 per year to maintain a modest but stable quality of life — the highest in the country. Massachusetts follows closely with a required annual income of $120,141.

The benchmark for "comfortable" living was defined by the 50/30/20 rule — a popular budgeting framework that suggests 50% of income should go toward necessities, 30% toward discretionary spending, and 20% toward savings and debt repayment. However, as housing, healthcare, and transportation costs surge across the nation, even adhering to this model is becoming more aspirational than achievable.

How the Cost of Comfort Varies by State

Let’s break it down: in Mississippi, long considered among the most affordable states, a single person now needs around $86,320 to live comfortably — a nearly 4.3% increase from last year. In California, that number jumps to $119,475, up over 5% from 2024, reflecting not just inflation but the ongoing housing affordability crisis plaguing the West Coast.

Even traditionally "low-cost" states like Arkansas ($81,078) and Indiana ($86,570) are showing steady year-over-year increases, driven by the rising prices of essentials such as rent, utilities, insurance, and even groceries. Inflation might be slowing on paper, but many residents still feel the pinch in real life.

Midwestern states like Ohio and Wisconsin now require annual incomes of around $84,781 and $87,194, respectively, for single adults to avoid financial strain — proving that no region is immune to cost-of-living hikes.

On the other hand, high-cost states like New York ($114,691), Maryland ($108,867), and Washington ($109,658) are climbing fast — driven by a combination of inflated real estate markets, competitive job sectors, and increased service costs.

Why Wage Growth Isn’t Keeping Up

While average wages across the U.S. have technically risen, they haven’t necessarily translated into real financial relief. A 2025 CNBC/SurveyMonkey poll found that 70% of Americans report feeling stressed about their financial situation, and that’s despite headline data suggesting wage growth has outpaced inflation.

So why the disconnect? Experts point to several factors:

• Housing costs have skyrocketed disproportionately compared to income. In cities like San Francisco, New York, and Boston, even modest one-bedroom apartments can cost over $3,000 a month.
• Healthcare premiums continue to rise, with the average individual plan now costing around $7,500 annually, according to the Kaiser Family Foundation.
• Transportation and food expenses are also up, especially in states dependent on long supply chains or those hit hard by fuel price volatility.

Additionally, although unemployment remains relatively low, real income inequality is still growing. Many jobs added during the recovery from the COVID-19 pandemic have been in lower-paying service or gig economy roles, leaving many Americans stuck below the threshold needed for financial comfort.

A Look at the Highest and Lowest States in 2025

If you're wondering where your state stands, here are a few standout figures from this year’s SmartAsset findings:

• West Virginia remains the most affordable, but still requires nearly $81,000 for a single adult to meet comfort benchmarks.
• Hawaii remains the most expensive, needing over $124,000, largely due to exorbitant housing and import-dependent goods.
• California, Massachusetts, New York, and Washington all demand incomes well above $100,000 to live without financial stress.
• Even smaller or rural states like Montana ($92,851) and Utah ($99,466) have joined the five-figure comfort club, rising more than 6-9% year over year.

What You Can Do to Keep Up

If this feels overwhelming, you’re not alone. With stagnant wages and soaring costs, more Americans are turning to side gigs, remote work, and high-demand skills like AI, coding, and digital marketing to boost income.

According to LinkedIn’s 2025 Workforce Trends report, over 60% of professionals under 40 are exploring multiple income streams, including freelancing, investing, and e-commerce businesses. Platforms like Upwork, Fiverr, and Shopify have become economic lifelines for many trying to close the gap between earnings and actual living costs.

Financial advisors still recommend following the 50/30/20 rule when possible — but acknowledge that for many Americans, this is simply out of reach without significant lifestyle adjustments or additional income sources.

The Bigger Picture: What It Means for the Economy

This growing divide between wages and living costs poses long-term challenges for the economy. When individuals can’t afford to save or invest, it reduces consumer confidence, shrinks the middle class, and weakens overall economic resilience.

Moreover, as people delay home ownership, marriage, and even having children due to affordability concerns, these trends can ripple across real estate markets, education, and healthcare systems — creating generational effects.

Unless wages increase significantly or costs stabilize, experts believe the term "comfortable living" will remain elusive for millions of Americans, no matter which state they call home.

Final Thought

Whether you're living in Alabama or Alaska, one truth holds firm in 2025: earning a median income is no longer enough. Staying financially afloat, let alone comfortable, now requires strategic planning, multiple income streams, and sometimes — a zip code change.

As the cost of living rises in nearly every corner of the country, the American Dream is being redefined. And for many, the price of comfort keeps moving further out of reach.