Here’s how far your paycheck goes in America's major cities in 2025

Employees who are hustling and bustling in the country's biggest cities may often wonder what life would be like if they could work in a smaller city. 

Will my life be more affordable? Will my finances go further? Is the grass greener on the other side? 

Bankrate believes it has the answers to these questions after a recent cost-of-living analysis, that helps people consider the cost of living in a new city before taking on a new job. 

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The consumer financial services company said they looked into data from the Bureau of Economic Analysis to determine how far average annual salaries go in the 25 largest U.S. metros.

"Moving from a high-cost area to a lower-cost city – or vice versa – may not always result in the expected increase in purchasing power," the company said on its website. "While workers in expensive cities tend to get paid higher wages on average, their pay effectively declines when adjusted for the area’s cost of living."

"Similarly, workers in cheaper areas may make less, on average, but their pay effectively increases because they can buy more with their dollars," the company continued. 

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What is purchasing power?

According to Bankrate, purchasing power is defined as "how much you can buy with a specific amount of money."

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Though the decision is up to you, Bankrate has gathered advice from insiders as to whether people should relocate to another city because of a job. 

"Start by analyzing the base salary and bonuses, adjusting them using cost-of-living calculators specific to the new city to ensure they align with local expenses," Melissa Fleury, career coach and founder of the Branded Career told the company. "Next, review the benefits offered… and account for hidden costs such as differences in transportation, childcare and lifestyle expenses, which can significantly impact your overall financial well-being in the new location."

*Research what industries are prevalent in the city that you’re considering moving to and the health of the company,"  Raquel Cid, career coach and founder of Coached by Cid added. "You don’t want to limit yourself, and it’s ideal if there’s more than one industry that’s prevalent."

The Source: The information in this story came from a recent cost-of-living analysis conducted by Bankrate, which used data from the Bureau of Economic Analysis to examine how far average annual salaries stretch in the 25 largest U.S. metro areas. This story was reported from Los Angeles. 

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