Gen Z Thinks a $500K Salary Means Success — in These Cities, They’re Right
Written by
Laura Bogart
Edited by
Kristen Mae
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Toward the tail end of 2024, a financial survey conducted by Empower exploring the financial attitudes of different generations made headlines with one eye-catching finding: Gen Z respondents defined a “successful” salary as at least $500,000 — more than double the figure cited by older generations.
For some readers, this just seemed like yet another example of privilege among a generation used to chasing the hottest technologies and coolest trends across social media. Of course, they’d need that kind of salary to keep up with all things flashy and new. But given the rising cost of living, from skyrocketing grocery prices and housing to student loan debt, Gen Z’s salary preference isn’t as outlandish as it might appear at first glance.
In some of the country’s most expensive cities, even a salary that seems outlandish can get eaten up in a hurry. Here’s a breakdown of what living expenses look like in cities where Gen Z might be right to think $500,000 is just enough to call yourself successful.
San Francisco, CA
San Francisco, CA is famously expensive, with a cost of living about 44% higher than the U.S. average. In 2024, the average rent for a one-bedroom apartment topped $3,000 per month. Add in rising food and transportation costs, and that $500,000 salary suddenly doesn’t feel so unreasonable.
According to CNBC, the San Jose-San Francisco-Oakland metropolitan area is also home to many high-paying jobs, with 2.08% of jobs paying over $500,000, which helps explain why those living there may have higher salary expectations.
San Diego, California
San Diego may be known for its gorgeous beaches and parks, but it’s also infamous for its incredibly high cost of living — about 36% higher than the U.S. average.
Good luck house hunting in San Diego, since housing costs are a whopping 115% higher than the national average. A two-bedroom apartment rents for an average of $3,211.83. If you’re looking to buy a three-bedroom, two-bathroom house, you might want to sit down and take a breath: the median price could exceed $1 million. With everyday costs like these, a $500,000 salary would come in handy.
New York, NY
It’s common knowledge that taking a bite out of the Big Apple is expensive. Housing expenses in New York City are 44% higher than in the rest of the state and 77% higher than the national average. Dining out, commuting, and entertainment also come with premium price tags.
However, the New York-Newark metropolitan area, which spans NY, NJ, CT, and PA has a 1.07% share of jobs paying over $500,000.
Honolulu, HI
If you love surfing, exploring beautiful parks and beaches, and enjoying a friendly culture, Honolulu might be the place for you — provided, of course, that you have a hefty salary.
According to Payscale, the cost of living in Honolulu is 85% higher than the national average, with housing costs a staggering 219% higher than the national average. Even the cost of groceries is 21% higher, and utilities can be 71% higher than in other U.S. cities.
Los Angeles, CA
The devastating fires that swept through Los Angeles proved that the people of the City of Angels are strong, resilient, and compassionate. As people begin the process of rebuilding, more attention has been paid to the wealth disparities within the city, and how expensive it can be for the average person to live there. LA has a cost of living 50% higher than the national average, and housing costs are 137% higher, according to Payscale,
For residents rebuilding their lives and navigating the city’s persistent wealth disparities, a $500,000 salary may not be a luxury but a necessity.
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