This is a question for my fellow Americans. I live in MN and can’t figure out how it’s possible to be poor in a state like California or Florida. I pay 900$ in rent for a 1 bedroom and feel like it’s still a lot to come up with.

38 comments

  1. Oh that’s easy! I just remain in a constant state of struggle and don’t afford nice things 🫠

  3. Florida isn’t really that high on the COL index, likely higher than MN, but much of Florida is very affordable if you’re inland. 

    Same with many parts of California. 

    The reality is that the people in those places make more money, or don’t, but that part is the same everywhere. 

  4. I have a good job. My kids are supported financially partially by their dad.

  5. Similar jobs in CA pay more than in MN, and we have industries here that don’t exist there that are higher paying as well. $2500 for a 1bd in a nice area around here would be a steal.

  6. I live in a studio apartment because I prefer to live alone and it’s what I can afford. People find roommates if they want to live in a bigger place and can’t afford it alone. People also make and stick to a budget and don’t always live in the nicest places or areas in HCOL places so they have an easier time affording it.

  8. I also would like to pay $900 for a 1br. I feel like in 2024 that will get you just a meh apartment in a meh area for Indianapolis. In the northern suburbs its basically impossible to not be paying less than $1k and often a good chunk more.

  9. **They have more money than you**, or they make certain involuntary sacrifices, like very long commutes or shared accommodations. Otherwise, they will be forced to move or become homeless.

    Isn’t this obvious?

  10. We say things like “why is this all so expensive!!!” And “we need to move”

    The good school district and lovely suburb are what we want for our kiddos so we stay and sometimes we worry. Side hustles second business helps. Also, we bought our house twenty years ago and even though it’s small everything else is too expensive now to move into and not have to switch schools.

  11. I just moved from WI to CT. Had a $1,700/mo mortgage and now pay $3,300/mo in rent. I am self employed so I don’t get a cost of living adjustment. However, my husband did when we moved, so while our expenses will be more in CT, it’s close to a wash.

  12. I’m a native Californian, I call it Monopoly money. Yes, everything is very expensive, and yes, housing is ludicrous, but we also make much more than the rest of the country. That’s one of the reasons so many people move here – you get an immediate salary bump (in most industries.) Just think of 100K in the Bay Area or SoCal = ~40K in the Midwest.

  13. Jobs pay more in those areas generally. In the Bay area you aren’t hiring anyone with a college degree for less than 80k

  14. The pay is better. For example, in CA the minimum wage is $16, while in MN its under $9.

    ​

    That carries through in other jobs as well. I am in MA, which is HCOL, but its also very common for blue collar workers like electricians and plumbers to make well over $100K a year. My wife is a nurse in Boston and her base salary is almost $200K, and with a few extra shifts its well over that. Granted our very modest house is currently valued at close to $1 million so a good chunk of that salary goes right to housing.

  15. As someone mentioned on tik tok is true that expensive cities are well expensive but they are full of opportunities, so basically you can find different accommodation and gig jobs as long you are navigating to afford living in a High cost of living the saddest true is that in a high cost of living area you can’t live out of just one salary you need a gig job or second income

  16. Husband and I pay $1975 for a one bedroom (and that’s cheap here) if that makes you feel any better 🙃

  17. The income/wage is usually higher in cities with large cost-of-living. Goods are outrageously priced in parts of Alaska, for example, but income is much higher there than in the lower 48.

  18. I make more for my job here on the east coast than I would for the same job in the midwest, and that’s even with a job that underpays. I have no student loans, no credit card debt, and no major monthly payments aside from rent like a car, etc.

    I’m still middle class by local standards, and rent an apartment with roommates and whatnot. If I wanted to him property or raise a family I would need a partner earning at least what I make and/or to move to a low cost of living area.

    At this point in my life, the tradeoff for higher COL with easy access to world-class amenities is worth it.

  19. 1. Wages are usually higher to (partially) compensate.
    2. Wealthier states have more social programs to help the poor.

  20. I just moved to Florida and noticed a few things:

    Multi-generational housing is BIG here. It’s very common to have a mother, father, and children qualify to buy a house *together* because they need all their incomes. The problem is that builders haven’t adjusted the homes to take into consideration that an *adult* family of 5-6 will be living under one roof and are still building them “open concept” with only 1 living space for everyone…

    Everyone has 2-3 jobs.

    The hustle culture is real. In addition to people working 2-3 jobs, they’re on FB or Nextdoor hawking their services. My entire feed is people begging for work — “I braid hair! I clean! I power wash!”

    The issue with Florida is that employers here *really* take advantage of the fact that the economy is tourism based (which means the majority of workers are “unskilled”) and there’s no state income tax. So a job that would pay $100,000 in MN would only be, like, $45,000 here. It’s insane what they get away with because people are desperate for jobs.

    … But if you work in construction you’re set. You’re easily pulling in mid six figures because of all the building down here.

  21. You make more or you live with less, typically less space. Roommates for 1 BR apartments, heck even studios, lease authorized or not.

  22. They have roommates or make poor financial decisions or you just get paid enough to justify it.

    I know several single young adults that think since they make $4k a month, they can afford a $2.5k place “in the city.” Some will even sell their cars or forego them to be able to afford places.

  23. I live in South Florida and I work two jobs. Wife works . Teenage daughter works. We all do side hustles.

  24. My boyfriend and I rent a house with another long term couple we have known for 10+ years.

    For all involved it is cheaper than renting 2 bed apartments for each couple.

    None of us are having kids. And only 2 of us own a modest car (paid off).

    Personally, I am a state employee and I just had an info session about going back to school for higher wages. My boyfriend was unemployed a lot during the recession and he got a grant to get training in an in-demand field, he is in IT now and makes okay money. My housemates are either going back to school or getting promotions into mgmt. We’re in our 40s. If you need to go back to school to live in your beloved city do it now.

    There’s people at my work who have announced their applied degree achievement and bon voyage to new jobs. They were parents and other non-traditional students.

  25. A lot of reasons: In California, a common reason for a lot of residents is prop 13. People are living in homes they bought 50 years ago and because of prop 13, their property tax bill is very low. For others, it’s rent control and they can’t afford to leave their properties. Others that make close to minimum wage commute up to 2 hours a day or more. For a lot of folks, they have high paying jobs in tech, finance, pharma, law, or some other high paying field. But many take on second jobs. And a lot of folks under 30 live with their parents.

  26. Salaries for the same job will be higher in higher cost of living cities. A lot of people in my area will work in DC but live in Baltimore so that they can make DC cost of living salary on a cheaper cost of living. It’s like a $20k difference in some cases.

  27. Most of the high cost of living areas also have higher wages. in LA the minimum wage is like $17 an hour and most people are gonna be making a lot more than that. Even people who do make minimum wage in these places can probably get by without too much discomfort if they have a roommate or two

  28. Make more money for the same job as in low cost of living areas. The same job I have pays a lot less in other states.

  30. You’ll hear a lot of anecdotal responses on higher salaries and living on tighter budgets. That’s true, though it’s an incomplete picture.

    Richard Florida’s [New Urban Crisis](https://www.bloomberg.com/news/articles/2017-04-11/richard-florida-introduces-the-new-urban-crisis) explored the dynamic. The HCOL mega cities (NYC, LA, Seattle, DC, etc.) are expensive but the tradeoff is that salaries and long term career opportunities are much better…for white collar workers. For blue collar workers, pay is higher, but not high enough to offset the higher cost of living, so they’re increasingly moving to more affordable parts of the country.

  31. Earn more money or cut on expenses. Roommates, multiple jobs, accepting a smaller space, or getting a high income job.

    In my personal case, I have a graduate degree and jobs for my experience level are at the high double digits/low six figures range. Add on that I don’t have debt or kids at this point and it works. Just different place in life- it works for a guy in his late 20s, but my income would be stretched if I was supporting a wife and kids at this point. But then, dual income professional households are the norm where I live

  32. I live in downtown Seattle and I don’t even think I make enough to qualify as “middle class” in Seattle. But jobs pay way more usually. I have a roommate and we have a nice 2B2B. I grew up in South Dakota and couldn’t fathom how ppl afforded to live in HCOL places either until I moved here.

  33. The high cost of living areas tend to have the highest paying jobs. These jobs are located in major cities and their metro areas and as a result so many people live there and many move there despite the high cost of living, whether it’s from other states or emigrating from abroad.

    This is why these places have such high costs of living. It’s simple supply and demand. There is such a demand for housing in these areas but the supply just isn’t enough, so the pricing will reflect it.

  34. Car payment is 5% net income.. I own a condo in a terrible complex/okayish during daytime neighborhood. Mortgage/HOA/utilities is just under 30% net. $100/wk is my loose budget for groceries. That’s with soap, shampoo, detergent, toothpaste, deodorant etc included. I have a Sam’s Club card. I don’t date and have to be feeling pretty good about myself to spend $20 for a couple pizzas and crazy bread at Little Caesars. I live in Denver FWIW.

  35. Higher paid jobs and more of them, but it can still be harder to get by than in LCOL areas. My husband and I both have pretty good jobs, but we can only afford a condo at the moment out here.

  36. Jobs pay more in higher cost of living areas. I don’t even have a degree and I’m making 75k as an accountant around Chicago.

  37. I work a job and have a side business. My spouse works. That gives us a pretty good household income, about median for our area, so higher than national median. We have a place that is older construction. We share one car between us so within town transportation expenses are cheap.

    Now out of town travel that’s insane as it’s usually flying. Medical care is really expensive and lacking choice. Groceries are also expensive but we supplement with some foods we ourselves gather.

    Being poor here is not easy. WIC, Medicaid, and headstart types of programs only go so far. Housing is in super short supply, let alone affordable housing,
    And I’m quite frankly sick of low wage employees subsidizing owner income by having employees desperate and reliant on government assistance in sectors like seasonal tourism or services.

  38. I get paid like $85k in NC for a job that would pay maybe $150k at least in CA. Maybe $175k? Jobs in high cost areas also pay more on average

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