Here's how much the 'American Dream' costs in Los Angeles
Cost of 'American Dream' is $4.4M
SUGGESTED: The cost of living the American Dream will cost more than ever before.
LOS ANGELES - The cost of the "American Dream" is going up, according to a new study released earlier this month.
For years, making six figures was held as the benchmark for being successful and living comfortably. But, a new analysis by GoBankingRates found that salary isn't enough anymore for any of the 50 biggest states in the U.S.
How much does the 'American Dream' cost in Los Angeles?
What we know:
At a minimum, the analysis found, someone would need to make $102,000 annually to afford the "American Dream" in the biggest cities across the U.S. GoBankingRates got their numbers by looking at things like mortgages and car, healthcare and grocery costs, among other metrics.
By the numbers:
So how does Los Angeles stack up against the other biggest cities in the country? According to GoBankingRates' analysis, the "American Dream" costs just under $160,000 in LA. That's the seventh-highest cost in the country, according to their metrics. Here are the full details:
- Household income for the American dream: $159,496
- Total annual cost of living: $79,748
- Grocery costs per year: $9,433
- Average monthly mortgage cost: $6,007
- Child care cost per year: $34,964
SUGGESTED: How to save money at the grocery store: Survey found these top ideas
The ‘American Dream’ in California
Local perspective:
The good news for Angelenos, if you want to look at it that way, is that LA isn't even the most expensive city in the state, the GoBankingRates study found. The "American Dream" costs even more in San Francisco, San Jose and Oakland, which ranked fourth, fifth and sixth-highest, respectively. Here's a breakdown.
San Francisco
- Household income for the American dream: $172,340
- Total annual cost of living: $86,170
- Grocery costs per year: $10,565
- Average monthly mortgage cost: $8,110
- Child care cost per year: $34,964
High egg prices under investigation by DOJ
SUGGESTED: The Justice Dept. is investigating if egg producers are working together to raise prices or reduce supply.
San Jose, California
- Household income for the American dream: $167,958
- Total annual cost of living: $83,979
- Grocery costs per year: $10,302
- Average monthly mortgage cost: $9,228
- Child care cost per year: $34,964
Oakland, California
- Household income for the American dream: $160,162
- Total annual cost of living: $80,081
- Grocery costs per year: $10,085
- Average monthly mortgage cost: $4,761
- Child care cost per year: $34,964
The most expensive cities
Dig deeper:
So who tops the list? Without Los Angeles and San Francisco, the rest of the most likely suspects round out the top. Washington, D.C., is the city where the "American Dream" costs the most, according to GoBankingRates. In the nation's capital, it will cost you nearly $190,000. Boston and New York City were second and third on the list.
Washington, D.C.
- Household income for the American dream: $189,306
- Total annual cost of living: $94,653
- Grocery costs per year: $10,339
- Average monthly mortgage cost: $4,165
- Child care cost per year: $51,069
Boston
- Household income for the American dream: $175,628
- Total annual cost of living: $87,814
- Grocery costs per year: $10,094
- Average monthly mortgage cost: $4,685
- Child care cost per year: $44,649
New York City
- Household income for the American dream: $173,006
- Total annual cost of living: $86,503
- Grocery costs per year: $10,565
- Average monthly mortgage cost: $4,656
- Child care cost per year: $32,349
The full report can be found by tapping or clicking here.
The Source: Information in this story comes from a GoBankingRates analysis from March 11, 2025. GoBankingRates got their numbers from Sperling’s BestPlaces cost of living indices, the Bureau of Labor Statistics Consumer Expenditure Survey, the Federal Reserve, the Zillow Home Value Index for January 2025, the U.S. Census American Community Survey and the AreaVibes livability index.