The cost of living in the United States continues to climb in 2025, creating added pressure on workers and businesses alike. With inflation remaining a concern, the Consumer Price Index (CPI) rose by 2.8% over the past year, according to the latest data from the Bureau of Labor Statistics (BLS).
Housing, one of the biggest expenses for Americans, saw the cost of shelter rise by 4.4% in 2024.That means a median income household earning about $83,782 now spends roughly 41.8% of their income just on housing. This paints a clear picture: living comfortably in today’s economy demands higher salaries than ever before—especially when compared to the Average US Salary in many regions.
And that rising bar doesn’t just affect workers. Employers are feeling the pinch too—especially when trying to attract or retain talent. That’s why many are turning to outsourcing as a smarter way to control costs without cutting corners on quality. Housing costs, a significant component of the CPI, have seen notable increases. In 2024, the cost of shelter rose by 4.4%, reflecting the ongoing challenges in the housing market. This surge has led to a situation where a household earning the median U.S. income of $83,782 would need to allocate approximately 41.8% of their income to afford a median-priced home, highlighting the strain on personal finances.
These rising expenses impact both workers and businesses—especially payroll and benefits. As a result, many companies are exploring outsourcing as a cost-effective way to manage labor without sacrificing quality.
But before turning to outsourcing, it’s important to understand what “living comfortably” actually costs in the U.S.
What Does ‘Living Comfortably’ Actually Mean?
Living comfortably isn’t just about paying the bills. It means meeting basic needs—housing, transportation, healthcare—without stress, and still having:
- Disposable income for fun, travel, and dining out.
- Savings for emergencies, retirement, and long-term goals.
- Access to quality education and medical care.
- Time and energy for family, hobbies, and life enjoyment.
But what’s considered “comfortable” can vary dramatically depending on where you live and what you earn. A single person in a small town might get by with far less than a family of four in a major metro area.
That’s why it’s important to research salary ranges when considering job locations or budgeting for your household. According to average salary data and the national average wage index, the average salary in the U.S. continues to rise—but not evenly. Salary ranges for specific occupations and regions can differ widely, and sometimes billionaires might drive the average higher, skewing the data.
And when you research salary comparisons, you’ll often find that while average earnings may look appealing, the pay gap and salary compares between urban and rural areas—or different roles—can be significant. So whether you’re assessing career options or planning your finances, understanding the average salary nationwide and how it applies to your situation is essential.
The Average Salary in US
So, how much income does it really take to live comfortably today?
National Average
According to a 2024 study by GOBankingRates, the average salary needed to live comfortably in the 50 largest U.S. cities varies greatly. For example:
- In Detroit, you need around $64,849.
- In San Jose, the figure shoots up to $265,926.
That’s a huge range, showing how much average salaries can differ based on location.
Breakdown by City & Cost Variations
Expensive Cities (NYC, San Francisco, LA):
- Average annual salary needed: $100,000 to $150,000.
- Rent alone can top $3,000/month.
Mid-Tier Cities (Austin, Seattle, Denver):
- Comfortable living needs about $75,000/year on average.
- More manageable cost of living, but still rising.
Smaller Towns (Kansas City, Omaha, Tulsa):
- Comfortable living possible on $50,000 to $60,000/year.
- Lower housing, grocery, and commuting costs.
What’s the Average Salary in the Philippines in 2025?
Curious about the average salary in the Philippines for 2025? Salaries are projected to rise by 5.5%, with the average monthly income reaching approximately ₱44,800 (around $780). Dive into the full article to explore detailed salary trends and insights
How This Compares to Outsourcing Costs
U.S. vs. Offshore Costs
Hiring a U.S.-based full-time employee costs anywhere from $50,000 to $100,000+ per year—sometimes more when you add benefits, taxes, and office space.
By contrast, outsourcing offers big savings:
- Virtual assistant (Philippines): $800–$1,500/month
- Software developer (India): $1,500–$3,000/month
- Customer support (Colombia): Around $1,000/month or less
These roles deliver value at a fraction of what U.S.-based employees typically cost, without the overhead of benefits or compliance with U.S. labor laws.
More Than Just Salaries: Added Savings Through Outsourcing
Companies outsourcing also save on:
- Office rent and equipment
- Health benefits and retirement contributions
- Training and onboarding
- Utilities and facility costs
Plus, outsourcing offers flexibility. Need five developers for just six months? No problem. Want overnight support without hiring locally? Easily handled.
And Quality? Still Top Notch.
There’s a common misconception that outsourcing compromises quality. But according to data from recent global studies, that’s no longer the case. In fact, today’s international workforce is not only tech-savvy and fluent in English, but also highly specialized across nearly every occupation. Whether you’re looking for developers, designers, or support agents, you’ll find talent with skills that rival—if not surpass—those of U.S.-based teams.
With the right tools and processes in place, outsourced teams can deliver results comparable to those earning median salaries or even the highest average wages in the U.S. According to the Census Bureau and Social Security data, wages rose steadily between 2022 and 2023, pushing many employers to explore alternatives like outsourcing to remain competitive without sacrificing performance.
So, Ready to Reduce Costs Without Sacrificing Talent?
With 2025 salary trends on the rise and the cost of living continuing to climb, businesses and employees alike are feeling the squeeze. For full-time workers, especially those in single income households, the pressure to keep up with expenses is real.
So whether your state has a higher average, or you’re based in a region with a higher average salary, outsourcing offers a cost-efficient way to balance these pressures. It allows companies to grow and adapt—without sacrificing talent or performance.
Let’s talk about how to reduce costs while still hiring the best people—no matter where they’re located.
