LOL head in the sand. Who cares about higher income if cost of living is grows at a higher pace? If you're rich, you'll be fine. If not, good luck!
**Texas and Florida are more affordable overall than California and New York when considering both median household income growth and cost of living (COL).** The lower COL in TX/FL more than offsets their moderately lower median incomes, resulting in greater purchasing power and better housing affordability for typical households. CA and NY offer higher absolute incomes (especially CA), but extremely high COL—driven largely by housing—erodes much of that advantage.
### 1. Median Household Income (2024 data)
Here are the most recent median household income figures:
- **California**: $100,149
- **New York**: $86,830
- **Texas**: $81,490
- **Florida**: $77,735
- **U.S. national**: ~$81,600–$83,700
CA leads by a wide margin, followed by NY. TX and FL are closer to (or slightly below) the national average.
### 2. Income Growth Trends
Recent growth (roughly 2010 to recent years) shows CA pulling ahead in percentage terms due to its tech-heavy economy:
- California: +33.5%
- New York: +25.6%
- Texas: +24.2%
- Florida: +23.6%
- National average: +22.4%
Over the longer term (1970–2023, inflation-adjusted), CA also saw strong real growth (~61%), with TX (~48.5%) and FL (~40.4%) outperforming NY (~30.5%). TX and FL have benefited from population and economic expansion (e.g., strong GDP growth rankings, with FL often #1 or #2 nationally in recent periods). All four states have seen solid gains, but CA’s higher growth starts from (and stays at) a much higher COL base.
### 3. Cost of Living (Latest Indices, National Average = 100)
COL is dramatically higher in CA and NY:
- **California**: 142.3 (highest among the four)
- **New York**: 125.1
- **Florida**: 102.2
- **Texas**: 92.1 (well below national average)
Housing is the biggest driver: CA homes often exceed $800k median (sometimes $833k+), NY around $500k–$660k in many areas, while TX is ~$300k–$370k and FL ~$400k–$445k. Groceries, utilities, and transportation also run higher in CA/NY.
### 4. Affordability: Income Adjusted for COL (Purchasing Power)
A simple way to compare is to adjust median income for the COL index (higher number = better real buying power):
- Texas: ~$88,500 effective
- Florida: ~$76,100 effective
- California: ~$70,400 effective
- New York: ~$69,400 effective
**TX and FL clearly come out ahead.** A typical household in TX/FL can buy more with their income. Housing-specific metrics confirm this: CA and FL rank among the *least* affordable for homeowners (housing can consume 60–70%+ of median income in high-cost areas), while TX scores high on affordability and homebuilding report cards (often A- grades). NY and CA frequently get F grades due to high prices and limited new construction relative to demand.
### Bottom Line: Which Are More Affordable?
- **Texas and Florida win on affordability.** Lower (or near-average) COL combined with decent and growing incomes gives residents more disposable income, cheaper housing, and overall better value. This is a key reason for strong net migration *into* TX/FL from CA/NY.
- **California and New York** have higher nominal incomes and strong growth (especially CA), but the extreme COL premium—particularly housing—makes them less affordable for most people. High earners in tech/finance can thrive there, but median households face more strain.
These are statewide averages; major metros (e.g., NYC, SF Bay Area, Miami, Austin) can vary sharply from rural/suburban areas within each state. Taxes (higher in CA/NY) and other factors like climate or job markets also play a role in personal decisions, but purely on income growth + COL, **TX/FL are the more affordable pair**. Data is from 2024–2025 sources (Census, BEA, World Population Review, etc.) and trends have been consistent in recent years.