The Los Angeles-Long Beach-Anaheim metro area did finish second, researchers found, ranking second for the highest percentage of income spent on housing – just over 25% — in addition to percentage of renters who spend at least half of their income on rent, about 30%.
L.A. and its surrounding cities also struggle with high debt levels, having the fourth-highest debt-to-income ratio of all fifteen metro areas analyzed by Forbes Advisor. Over 11% of households in the L.A. metro area experience food scarcity – the third-highest percentage in America – and more than a third of households have difficulty paying “usual expenses” as of the third quarter of 2023.
When it comes to the hardest metro area in the United States to save money in, one does not have to travel far outside of Los Angeles.
The Riverside-San Bernardino-Ontario metropolitan area finished above L.A., having the highest debt-to-income ratio of the 15 metros Forbes analyzed (2.59).
The Inland Empire’s principal cities also placed within the top three for the percentage of households experiencing recent difficulty paying usual expenses, percentage of households facing food scarcity, percentage of income spent on housing and percentage of renters spending at least half of their income on rent (40.12%, 13.44%, 24.74% and 29.71% respectively).
A list of America’s hardest metro areas to save money in can be viewed below:
Overall rank
Metropolitan area
Debt-to-income ratio
Hourly wage
Difficulty paying for expenses
Income spent on housing
Total score
1.
Riverside-San Bernardino-Ontario
259.30
$25.77
40.12%
24.74%
100
2.
Los Angeles-Long Beach-Anaheim
178.00
$27.57
33.89%
25.81%
99.06
3.
Miami-Fort Lauderdale-Pompano Beach, FL
154.80
$25.77
34.98%
29.03%
85.36
4.
New York-Newark-Jersey City, NY-NJ-PA
113.10
$28.04
30.75%
22.08%
64.47
5.
Atlanta-Sandy Springs-Alpharetta, GA
148.20
$25.83
28.60%
21.90%
53.34
Source: Forbes Advisor
On the statewide level, the Golden State ranked as the hardest state to save money in, having the fourth-highest cost of living index in America, according to data from the Missouri Economic Research and Information Center obtained by Forbes Advisor.
Housing is a “major drain” for Californians, the study noted, adding that many residents struggle with other everyday bills.
“[California] ranks sixth highest for the percentage of residents reporting difficulty paying their usual household expenses,” researchers said. “A Census Bureau survey conducted in January and February 2024 revealed that 34.53 percent of California households found it somewhat or very difficult to cover their typical expenses the previous week.”
The top ten most difficult states to save money in can be viewed below:
Overall rank
State
Debt-to-income ratio
Cost of Living Index *
Effective income tax rate
Income spent on housing
Total score
1.
California
1.69
139
14.92%
24.51%
100
2.
Hawaii
2.32
180
17.73%
23.53%
87.53
3.
Nevada
1.82
101
10.94%
24.24%
85.44
4.
Oregon
1.74
115
18.98%
21.73%
83.66
5.
Maryland
2.00
117
15.24%
19.58%
83.36
6.
Florida
1.77
101
10.94%
26.41%
81.53
7.
New York
0.98
126
15.82%
22.61%
79.06
8.
South Carolina
1.98
95
15.57%
20.29%
76.38
9.
Colorado
1.81
105
14.53%
22.12%
71.67
10.
Louisiana
1.46
91
14.09%
21.31%
70.31
Source: Forbes Advisor | *The Cost of Living Index tracks how much basic expenses rise over time and among states, including costs of food, shelter, transportation, energy, clothing, education, healthcare, childcare and entertainment
According to Forbes Advisor, ways that Americans can cut costs in expensive areas include trying to cook at home to minimize spending on dining out, moving into a smaller place, seeking cheaper forms of transport and cutting out unused memberships.
The full study, including the methodology used by the researchers, can be found here .
Copyright 2024 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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