How Much Do You Need to Earn to Live Comfortably in Philadelphia?

Eric Gerchberg

Oct 2

7 min read

Updated: 6 days ago

Philadelphia has a reputation for being one of the more affordable big cities on the East Coast.

And compared with New York, Boston, or Washington, it absolutely can be.

But there’s a pretty big difference between being able to afford to live in Philadelphia and being able to live comfortably in Philadelphia.

So how much do you actually need to earn?

Is $50,000 enough? What about $75,000? $100,000? And if your household makes $150,000 or $200,000 a year, are you suddenly living like royalty?

Not necessarily.

The answer depends on some pretty important things: whether you rent or own, where you live, whether you have kids, how much debt you carry, how often you go out, and what “comfortable” actually means to you.

So instead of pretending there’s one magic salary that works for everyone, let’s look at what life in Philadelphia can realistically feel like at a few different income levels.

PREFER TO WATCH?

I break all of this down in our latest video, including what changes as you move from $50,000 to $200,000 a year and the income ranges where I think Philadelphia really starts to feel comfortable.

https://youtu.be/V4jz0AMeHgk?si=9tBGGlaLA2SpXjKM

FIRST, WHAT DOES ‘COMFORTABLE’ ACTUALLY MEAN?

This is where a lot of cost-of-living calculators fall short.

Technically being able to pay your bills isn’t the same thing as feeling comfortable.

https://video.wixstatic.com/video/952d92_91e47f9d0c8b42bcae975bf9d39606b1/1080p/mp4/file.mp4

For this conversation, I’m thinking about being able to cover your housing and normal expenses while still having enough room in the budget to go out to dinner occasionally, enjoy the city, travel, save for retirement, maintain an emergency fund, handle an unexpected expense without panic, and generally have a life after paying for housing.

That last part matters.

As a Realtor, I obviously want you to like your house. I’d also like you to occasionally leave it.

If you're thinking about a move, our Moving to Philadelphia guide goes deeper into what to expect and how to start narrowing down where you might want to live.

CAN YOU LIVE IN PHILADELPHIA ON $50,000 A YEAR?

Yes.

But depending on your housing costs and other expenses, I wouldn’t necessarily describe it as comfortable.

At this income level, housing becomes a major part of the equation. Having a roommate, choosing a less expensive neighborhood, living in a smaller apartment, or keeping other fixed expenses low can make a significant difference.

There are also some Philadelphia-specific expenses to keep in mind. If you live and work in the city, for example, Philadelphia’s wage tax affects what actually ends up in your paycheck.

So your $50,000 salary and the amount that arrives in your bank account are obviously two different numbers.

At this income level, you can absolutely enjoy Philadelphia. But you’re probably paying closer attention to things like rent, restaurants, travel, and how much you’re able to save each month.

WHAT CHANGES AT $75,000?

Around $75,000, the math starts getting noticeably easier for a single person.

You have more flexibility in where you live, a little more freedom to go out, and hopefully more room for savings.

You’re still not living an unlimited-budget lifestyle, especially if you choose an expensive Center City apartment or have significant student loans, car payments, or other debt.

But this is where Philadelphia’s relative affordability compared with some other major East Coast cities starts becoming much more noticeable.

A salary that might feel extremely constrained in Manhattan can give you a very different lifestyle here.

And this is one of the reasons Philadelphia continues to attract people relocating from more expensive cities.

If you're comparing neighborhoods, our guide to finding the Philadelphia neighborhood that actually fits your life is a good place to start.

IS $100,000 A GOOD SALARY IN PHILADELPHIA?

For a single person, $100,000 can provide a very comfortable lifestyle in Philadelphia, assuming you aren’t carrying unusually high expenses.

You have considerably more housing choices, can enjoy the restaurant and entertainment scene, travel, save money, and start thinking more seriously about homeownership.

Philadelphia rowhomes in a residential neighborhood

But that does not mean you should automatically spend as much as a lender tells you that you qualify for.

One of the questions I ask buyers all the time is: What do you want your life to look like after you pay for the house?

Being approved for a certain mortgage payment and actually wanting to make that payment every month are completely different things.

If buying at the very top of your budget means giving up restaurants, travel, savings, and everything else you enjoy about living in Philadelphia, I’m not sure you actually bought yourself a better life.

If homeownership is part of the plan, our Philadelphia home-buying guide walks through the bigger decisions to think about before and during your search.

WHAT ABOUT A COUPLE EARNING $150,000?

This is where things get interesting.

A couple earning a combined $150,000, particularly without children, can live very well in Philadelphia.

You’ve entered the magical world of the DINK.

Dual

Income,

Kids.

I don’t make these terms up, but it is fun to say.

Two incomes can dramatically change the housing equation because many household expenses aren’t doubled simply because two people are living together.

At this level, buying a home becomes much more realistic in a number of Philadelphia neighborhoods while still leaving room for restaurants, travel, and savings.

Then you add children.

And they completely destroy the spreadsheet.

KIDS CHANGE THE COST OF LIVING IN PHILADELPHIA

Kids are wonderful.

https://video.wixstatic.com/video/952d92_06de7f94c89c4edba858f88db4aca4fa/1080p/mp4/file.mp4

They’re also tiny drunk roommates who contribute absolutely nothing toward the rent.

Childcare alone can dramatically change a household budget.

Then you start adding activities, food, clothing, camps, healthcare, school decisions, and potentially the desire for additional bedrooms or more outdoor space.

A household income that feels extremely comfortable for two adults can suddenly feel much tighter once daycare, camp, or private-school tuition enters the picture.

Housing needs can change too.

A one- or two-bedroom condo that worked perfectly before children may eventually turn into a search for three bedrooms, outdoor space, a finished basement, or simply somewhere to put the unbelievable quantity of stuff one small human somehow accumulates.

Wondering whether that extra space means leaving the city? We compare living in Philadelphia versus the Main Line, including housing, transportation and total carrying costs.

This is why I don’t think there’s a useful universal answer to: ‘Is $150,000 enough to live comfortably in Philadelphia?’

For a couple without children? Probably very comfortable.

For a household with multiple children, childcare expenses, and a large mortgage? Completely different calculation.

IS $200,000 A YEAR RICH IN PHILADELPHIA?

A $200,000 household income puts you in a very strong financial position compared with the typical household.

But lifestyle inflation is real.

A larger house means a larger mortgage.

More expensive homes generally mean higher taxes, insurance, utilities, and maintenance.

Add two cars, childcare, travel, restaurants, activities, and everything else that comes with life, and it’s surprisingly easy to make a very good income while still wondering where all the money went.

That doesn’t mean $200,000 isn’t a lot of money. It is.

It means income is only half of the equation.

Your fixed expenses determine how wealthy that income actually feels.

RENTING VS. BUYING IN PHILADELPHIA

Your comfortable salary number also changes depending on whether you plan to rent or buy.

Renting typically requires less cash upfront and gives you more flexibility.

Buying introduces an entirely different set of expenses: down payment, closing costs, mortgage payment, property taxes, homeowners insurance, repairs and maintenance, and condo or HOA fees in some properties.

But Philadelphia still offers something that has become increasingly difficult to find in other major Northeast cities: very different types of homes at very different price points within the same city.

A budget that buys a condo in one neighborhood might buy a multi-story rowhome with outdoor space somewhere else.

Move a few neighborhoods farther out and that same budget may buy substantially more space.

That’s why figuring out what you can comfortably afford is only the first step.

The next question is: What kind of life do you want that money to buy?

And if a rowhome is on your radar, our Philadelphia rowhome buyer guide covers the things we think buyers should understand before making an offer.

SO HOW MUCH DO YOU REALLY NEED TO LIVE COMFORTABLY IN PHILADELPHIA?

There is no perfect number.

But if someone asked me for realistic ranges where Philadelphia starts to feel financially comfortable, this is roughly where I’d put them:

Single person: $75,000 to $100,000

Couple without children: $125,000 to $175,000 combined

Family with children: $175,000 to $225,000+

These are not minimum salaries required to live in Philadelphia.

Plenty of Philadelphians live on less.

They also aren’t guarantees that someone earning those amounts will feel wealthy.

These are simply the ranges where, in my opinion, the finances start to feel more comfortable once you include housing, savings, going out, and actually enjoying the city.

There can be enormous variation within every one of these ranges depending on debt, housing choices, childcare, lifestyle, and where you choose to live.

WHY PHILADELPHIA CAN STILL BE A GREAT VALUE

This is the part of the conversation I think gets overlooked.

The reason Philadelphia can make financial sense isn’t simply that a house or apartment may cost less than it would in New York, Boston, or Washington.

It’s what your money can buy outside of your house, too.

Philadelphia gives you access to walkable neighborhoods, incredible restaurants, museums, theater, professional sports, concerts, parks, public transportation, neighborhood businesses, and a huge amount of culture within a relatively compact city.

And depending on your budget, homeownership can still be realistic without having to give up everything you enjoy doing outside the house.

That matters.

Because your money doesn’t just buy you more house in Philadelphia.

It can buy you more life outside of the house.

And ultimately, I think that’s a much better way to think about affordability.

THINKING ABOUT MOVING TO PHILADELPHIA?

If you’re considering moving to Philadelphia and trying to figure out what your budget would actually look like here, Melanie and I are always happy to talk it through.

We can help you understand what different budgets actually buy in different neighborhoods, what the monthly costs may look like, and which parts of Philadelphia might fit the kind of life you want to have.