In many major U.S. cities, making $150,000 a year — once thought to be a handsome salary — is only enough to qualify as “lower middle class,” according to a report from GoBankingRates.

Exorbitant housing is the main culprit, along with expensive childcare and transportation.

As Americans grapple with inflated prices for everyday goods –

some economists say prices have risen 19% since Biden took office — they are wondering what it means to be “rich” versus “middle class” in different areas of the country.

Here is a list followed by a breakdown of some of the most expensive cities in the nation, where earning $150,000 is no longer enough to be considered affluent:

San Francisco

“In San Franisco, the median home price hit $1.2 million in December 2023,” said Jeff Rose, founder of Alliance Wealth Management. “If you’re making $150,000 a year before taxes, that puts you in a tough spot for buying a home.”

Rose calculates that monthly payments on a $1.2 million home, “even with a substantial down payment, could easily exceed $5,000 or more. This could account for more than 40% of your gross monthly income — far above the recommended 30% or less.”

San Jose, California

The cost of living in the Silicon Valley city of San Jose, Calif., is a whopping 49% higher than the national average.

Even more shocking, housing costs 142% more than the national norm. Here, the median home price is $1.1 million.

Utility bills are 24% more than the national average. Groceries are 21% higher, and health care is 18% more expensive.

One of the reasons why housing, services and goods are so expensive for “The Capital of Silicon Valley” is because the high-flying tech industry has flooded the area with lucrative jobs.

Arlington, Virginia

In Arlington, Virginia, the cost of living is 41% higher than the U.S. national average. Here, housing is 121% higher than the rest of the country.

“Clients I work with in Arlington are seeing the impact” of six-figure government jobs in Washington, DC, on “housing, transportation, health care, education and general lifestyle,” says Rodney Griffin, a Northwestern Mutual financial adviser.

“While $150,000 may be a comfortable salary in some places, high demand from many people with comparative salaries can create an increased cost of living,” Griffin adds.

A family with a household income of $150,000 needs to budget carefully to avoid becoming house poor or cash strapped, Griffin says.

“No matter your salary or where you live, a good financial plan with a solid professional can alleviate any anxiety one may have about a high cost of living,” he says.

Seattle, Washington

Amazon, Microsoft and innovative start-ups have made Seattle home and contributed to its rapid economic growth. In so doing, prices have risen, and the cost of living in “Emerald City” is 50% higher than the U.S. average.

Plano, Texas

An upscale suburb of Dallas that offers a thriving business community and attractive downtown amenities, Plano, Texas costs 21% more to live in than other major cities in the U.S. Nevertheless, career-driven families continue to move here.

Other Expensive Cities:

Anchorage, Alaska
Chandler, Arizona
Gilbert, Arizona
Irvine, California
Oakland, California
San Diego, California
Jersey City, New Jersey
Chesapeake, Virginia
Washington, DC

Methodology: For this piece GOBankingRates first used the 2022 American Community Survey to find the 100 largest cities in the US, in terms of total households. Once those cities were isolated GOBankingRates found the median household incomes for all those cities. Then, we found the lower-class middle-income range following the Pew Research Center’s definition of middle-class income as “two-thirds to double” the median income of an area. All data was collected and is up to date as of Jan. 30, 2024.