Well, CA leads the nation by $10k per year in real, median household income. Half above, half below.
What good is it if the median income is $10k higher than the national average, if the cost of living is so high that it eats up that entire difference?
I live in Maryland, which has the highest median household income in the US, and the fourth highest median individual income. California, for comparison, is #9 household and #15 individual median income. (https://en.wikipedia.org/wiki/List_of_U.S._states_by_income)
The largest chunk of living expenses is housing. So, here is a description of my house, which various real estate sites estimate is worth $260-280K:
WELL MAINTAINED 3 BEDROOM 2 FULL 2 HALF BATH COLONIAL IN HISTORIC ________. FEATURES INCLUDE NEW FLOORING & FRESHLY PAINTED, MAKING YOUR DECORATING A BREEZE, NEW CARPET, HUGE KITCHEN NEW A/C 2011, NEW WATER HEATER 2014, NEW ROOF 2014, FULLY FINISHED LL REC ROOM W/ WALK OUT TO FENCED IN PATIO, LARGE DECK WITH NEW SLIDING GLASS DOOR.CONVENIENT ACCESS TO I-95. LOCATED IN QUIET CUL-DE-SAC. (1,574 sq. ft, monthy P&I $1293 estimated) (Plus we have a finished basement, which does not count in the sq. footage.)
Vs. a similar home for sale where we lived when I was a teenager:
San Ramon, CA 94583
3 beds 2 baths 1,361 sqft
For Sale
$840,000
Zestimate®: $870,485
Est. Mortgage $3,345/mo
This wonderful single story family home is located on a premium lot with no direct rear neighbors and easy access to the Iron Horse Trail, K-12 top rated schools and parks. This 1,361 square foot, three bedroom, two bath home features a new HVAC system, an eat-in kitchen with recessed lighting, stainless steel appliances, smooth surface counter tops, pantry and adjoining family room with a brick fireplace. You will also discover a spacious living room with crown moldings, three large bedrooms and a backyard with great potential for a private oasis, this is a must see! (Note: no basement, and the lot is 3,000 sq. feet smaller than ours.)
Holy cow! More than 3 times the price for less house! And it doesn't even have soffits!
How’s that for math and deductive reasoning? Did YOUR school teach either?
My math and deductive reasoning are doing just fine, thank you. And, for what it's worth, I went to high school with that embarrassingly annoying and out-of-touch congressman, Adam Schiff. And I do mean, literally went to school with him, same class and everything. Apparently, I learned the logic and deductive reasoning a lot better than he did. And no, I don't remember him (thankfully).
Perhaps you should try getting out of CA and taking a look at some other states. Maryland isn't the best example (but it is still affordable), but there are many much more affordable states with excellent quality of life.
The whole cost of living/purchasing power vs median income or gdp thing is quite regularized these days.
GDP and median incomes in international comparisons are cited, usually, as PPP - Purchasing Power Parity. In order to even out differences in price levels as well as exchange rates.
Its beginning to be done with US States also, because you are right of course, there are great differences between them, and they are very relevant. I have been doing this for many years now. I like the MERIC (Missouri Economic Research and Information Center) index for cost of living by state. Check it out.