Here’s the Living Wage a Millennial Needs To Live Comfortably in the South

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If you’re concerned about the cost-of-living crisis in the U.S., you’re not alone. More than half of Gen Z and millennials worldwide report living paycheck to paycheck, according to a recent Deloitte survey.

Meanwhile, 42% of millennials are stressed about the cost of living in their area, and desire for a better work-life balance is on the rise, per a World Economic Forum report.

Understanding standard costs of living in your area will help you shape your budget and plan ahead. If you live in the Southern U.S., here’s what you need to earn to live comfortably.

Average Cost of Living in the American South

Residents of every U.S. state have been impacted by economic changes in the past few years.

When inflation spiked sharply after the outbreak of COVID-19, average wages didn’t climb at the same rate. Rising food, gas and housing costs have squeezed many American budgets.

While this is true throughout the U.S., average costs vary state by state. States in the West and Northeast rank highest on the cost of living index — a measure of standard living and housing costs by state — while most Southern states rank lower.

However, that doesn’t necessarily make Southern states affordable havens. Mississippi, for example, ranks lowest on the cost of living index but has a poverty rate of nearly 20%.

It all comes down to how much you earn in comparison to your state’s costs.

Understanding the cost of living in each state is helpful for:

• Planning to move to a new state on your current salary.
• Seeking a higher-paying position.
• Deciding if you need new income streams.
• Planning for your financial future.

GOBankingRates broke down the costs in 16 Southern states based on a GOBankingRates study conducted this year.

Alabama

• Median household income: $59,609
• Average monthly mortgage cost: $1,357
• Average monthly expenditure cost: $1,777
• Average monthly cost of living total: $3,134
• Average annual cost of living total: $37,608
• Living wage needed to live comfortably: $75,217

Kentucky 

• Median household income: $60,183
• Average monthly mortgage cost: $1,237
• Average monthly expenditure cost: $1,837
• Average monthly cost of living total: $3,073
• Average annual cost of living total: $36,882
• Living wage needed to live comfortably: $73,763

Mississippi

• Median household income: $52,985
• Average monthly mortgage cost: $1,070
• Average monthly expenditure cost: $1,772
• Average monthly cost of living total: $2,842
• Average annual cost of living total: $34,106
• Living wage needed to live comfortably: $68,212

Tennessee

• Median household income: $64,035
• Average monthly mortgage cost: $1,934
• Average monthly expenditure cost: $1,730
• Average monthly cost of living total: $3,664
• Average annual cost of living total: $43,969
• Living wage needed to live comfortably: $87,938

Delaware

• Median household income: $79,325
• Average monthly mortgage cost: $2,306
• Average monthly expenditure cost: $1,922
• Average monthly cost of living total: $4,228
• Average annual cost of living total: $50,733
• Living wage needed to live comfortably: $101,465

Florida

• Median household income: $67,917
• Average monthly mortgage cost: $2,492
• Average monthly expenditure cost: $1,942
• Average monthly cost of living total: $4,434
• Average annual cost of living total: $53,207
• Living wage needed to live comfortably: $106,413

Georgia

• Median household income: $71,355
• Average monthly mortgage cost: $2,000
• Average monthly expenditure cost: $1,839
• Average monthly cost of living total: $3,839
• Average annual cost of living total: $46,064
• Living wage needed to live comfortably: $92,128

Maryland

• Median household income: $98,461
• Average monthly mortgage cost: $2,583
• Average monthly expenditure cost: $1,987
• Average monthly cost of living total: $4,570
• Average annual cost of living total: $54,839
• Living wage needed to live comfortably: $109,679

North Carolina

• Median household income: $66,186
• Average monthly mortgage cost: $2,008
• Average monthly expenditure cost: $1,875
• Average monthly cost of living total: $3,883
• Average annual cost of living total: $46,598
• Living wage needed to live comfortably: $93,195

South Carolina

• Median household income: $63,623
• Average monthly mortgage cost: $1,786
• Average monthly expenditure cost: $1,874
• Average monthly cost of living total: $3,659
• Average annual cost of living total: $43,914
• Living wage needed to live comfortably: $87,827

Virginia

• Median household income: $87,249
• Average monthly mortgage cost: $2,385
• Average monthly expenditure cost: $1,861
• Average monthly cost of living total: $4,246
• Average annual cost of living total: $50,949
• Living wage needed to live comfortably: $101,898

West Virginia

• Median household income: $55,217
• Average monthly mortgage cost: $1,000
• Average monthly expenditure cost: $1,822
• Average monthly cost of living total: $2,822
• Average annual cost of living total: $33,865
• Living wage needed to live comfortably: $67,731

Arkansas

• Median household income: $56,335
• Average monthly mortgage cost: $1,239
• Average monthly expenditure cost: $1,717
• Average monthly cost of living total: $2,956
• Average annual cost of living total: $35,469
• Living wage needed to live comfortably: $70,937

Louisiana

• Median household income: $57,852
• Average monthly mortgage cost: $1,209
• Average monthly expenditure cost: $1,750
• Average monthly cost of living total: $2,959
• Average annual cost of living total: $35,507
• Living wage needed to live comfortably: $71,014

Oklahoma

• Median household income: $61,364
• Average monthly mortgage cost: $1,241
• Average monthly expenditure cost: $1,769
• Average monthly cost of living total: $3,011
• Average annual cost of living total: $36,127
• Living wage needed to live comfortably: $72,254

Texas

• Median household income: $73,035
• Average monthly mortgage cost: $1,833
• Average monthly expenditure cost: $1,823
• Average monthly cost of living total: $3,656
• Average annual cost of living total: $43,872
• Living wage needed to live comfortably: $87,743

Methodology: For this study, GOBankingRates analyzed each state to find the comfortable living wage for millennials. Millennials for this study are defined as being born between 1981 and 1997. For each state, a number of factors were found including: total population, total households, household median income all sourced from the U.S. Census American Community Survey. The average single family home value from May 2024 was sourced from Zillow Home Value Index, and by assuming a 10% down payment and using the national 30-year fixed mortgage rate, as sourced from the Federal Reserve Economic Data, the average mortgage cost can be calculated. The cost-of-living indexes were sourced from Sperling’s BestPlaces, and by using the national average expenditure costs for residents born between 1981 and 1997, the average expenditure cost can be calculated. The expenditure cost and mortgage costs can be used to calculate the average total cost of living. Using the 50-30-20 budget rule, which allocates 50% of income for necessities, the study doubled the total annual expenditure on necessities in order to determine the living wage for millennials in each state. All data was collected on and is up to date as of Jul. 15, 2024.

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