Top Expensive Cities in the U.S. 2024
These are the most expensive cities in the United States, ranging from coastal
metropolises to the middle of the Pacific Ocean.
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The most
expensive U.S. cities are pricey for a good reason—actually, there are a number
of them. If it enables them to live somewhere with beautiful weather, residents
are willing to pay more for everything from housing to food to gas. Others
desire cosmopolitan living, which offers a wide variety of dining
establishments, museums, and other cultural alternatives.
Related: Top Cheapest Towns in U.S.
But
occasionally, plain old loneliness takes center stage. Prices will inevitably
be higher when nearly everything must be imported via extensive supply chains.
We went
to the most recent data from the Council for Community and Economic Research to
find out exactly how much the most costly cities in the United States can
actually cost (opens in new tab). Its Cost of Living Index calculates average
prices for housing, utilities, food, transportation, healthcare, and other
goods and services across 265 urban regions (such as getting your hair done or
going to a movie). For each location, we also gathered information on household
earnings, home prices, and unemployment rates in order to offer more context
for the true cost of living for average citizens.
Check out
the top 11 most expensive cities in the United States.
11.
Oakland, California
- Cost of living: 47.3%
above the U.S. average - Median household income: $82,236
(U.S.: $69,717) - City population: 433,797
- Unemployment rate: 3.5%
(U.S.: 3.7%) - Median home value: $848,600
(U.S.: $281,400)
Around
San Francisco Bay, there is a kind of Bermuda Triangle where affordable prices
mysteriously vanish, and Oakland anchors one of its corners. San Francisco is
located on the other corner and is equally well-known for its soaring real
estate as it is for Alcatraz and Fisherman's Wharf. Silicon Valley is the third
corner, where tech behemoths distribute six-figure salaries like candy on
Halloween.
Oakland
might appear to be a bargain when compared to its neighbors to the west and
south. But think about this: Although Oakland's median household income is
around 18% greater than the national average, its typical home value is three
times more than the national average.
In
Oakland, expenditures for maintaining a roof over one's head and other living
expenses are very high. According to C2ER, total housing-related costs are
three times higher than the national average. The cost of utilities,
transportation, and healthcare are all around 25% higher than the national
average, while the cost of groceries is 30% greater than what the average
American pays.
Fortunately,
California is among the states with the lowest tax burdens for middle-class
families.
Related: Top Cheapest Towns in U.S.
10. San
Diego, California
(Image
credit: Getty Images)
- Cost of living: 47.4%
above the U.S. average - Median household income: $93,042
- City population: 1,381,600
- Unemployment rate: 3.0%
- Median home value: $768,800
San Diego
is a heaven for outdoor enthusiasts because of its miles of beaches and
virtually perfect temperature. This Pacific Coast city offers activities for
everyone, whether it is surfing, sailing, hiking, bicycling, golfing, or simply
taking in Balboa Park.
San Diego
also has a world-class zoo, museums, professional sports teams, and a diverse
restaurant scene for those who prefer more leisurely pursuits.
The U.S.
Navy, Qualcomm (QCOM(opens in new tab)), and the University of California, San
Diego is some of the top employers.
So what
is there to dislike? San Diego life, though, may severely strain a budget. The
cost of housing is 127% more than the national average. San Diego's average
home price is a staggering $1.04 million, compared to the $465,991 national
average. Compared to the $1,427 average rent in the US, the average apartment
costs $3,174 per month.
And the
bleeding keeps going. About 10% more is spent on utilities, healthcare, and
groceries than the average American does. The cost of transportation is
particularly high, coming in at around 28% more than the national average.
9.
Boston, Massachusetts
(Image
credit: Getty Images)
- Cost of living: 49.9%
above the U.S. average - Median household income: $79,283
- City population: 654,281
- Unemployment rate: 2.9%
- Median home value: $659,700
It is
simple to understand why Boston is such a desirable city to live in with its
unmatched collection of universities, hospitals, historical monuments, and
businesses in innovation and biotech. The cost of the city's fame is
undoubtedly considerable, but it is not by any means as high as certain East
Coast communities that are frequently cited in the same sentence as Boston.
Since
there are so many students, recent graduates, and young professionals, it is
important that they can afford to live when they are beginning out. For
instance, the cost of groceries is "only" 13% higher than the
national average. Healthcare costs 14% more than the average American does,
while other goods and services are roughly 21% more expensive.
However,
housing-related costs are extremely high at 117% of the national average. Both
renters and homeowners pay at least twice as much for their homes as the
national average. For instance, the monthly average rent for an apartment in
Boston is $3,831. According to C2ER, the national average monthly income is
$1,427. Compared to the national average of $465,991, Boston homes cost
$937,122 on average.
The fact
that Massachusetts is not very tax-friendly for middle-class families or
seniors is another blow to locals' wallets.
8.
Seattle, Washington
(Image
credit: Getty Images)
- Cost of living: 52.2%
above the U.S. average - Median household income: $110,781
- City population: 733,904
- Unemployment rate: 2.7%
- Median home value: $848,100
When
Seattle's economy was in its prime a few years ago, prices were constantly
under pressure to rise and were as fiery and robust as its coffee. Although
COVID-19 provided some relief from the ongoing price hikes, Seattle continues
to be one of the most expensive cities in the country.
It is
simple to understand why. Seattle, a key center for the technology sector, is
swamped with well-paying positions. Many smaller high-tech businesses, like
Microsoft (MSFT(opens in new tab)), Amazon.com (AMZN(opens in new tab), and
others, have local offices.
Related: Top Cheapest Towns in U.S.
Similar
to every other city on our list, Seattle's sticker shock is primarily caused by
housing expenses. According to the Cost of Living Index, housing-related
expenses for both renters and homeowners are more than three times higher than
the national average.
But the
exorbitant costs don't really stop there. A typical American pays between 25%
and approximately 35% more for groceries, transportation, healthcare, and other
products and services.
Washington State is one of the most tax-friendly states for middle-class families while having a mixed record when it comes to taxes on seniors.
7. Los
Angeles, California
(Image
credit: Getty Images)
- Cost of living: 52.5%
above the U.S. average - Median household income: $70,372
- City population: 3,849,306
- Unemployment rate: 4.6%
- Median home value: $812,800
Los
Angeles is one of the most extravagant and opulent cities in the world, but the
majority of its citizens don't work in Hollywood or shop on Rodeo Drive.
Although L.A. is one of the most costly cities in the country due to high
living costs, the typical yearly income there is only $655 more than the
national average.
The
country's second-largest metropolis still has a lot to offer, though. Few towns
can boast as many famous locations, from Hollywood to Beverly Hills to Venice
Beach. Beyond the Kardashians, Los Angeles is home to a number of significant
museums including the renowned Los Angeles Philharmonic.
Just know
that Los Angeles' renowned traffic contributes to transportation costs being
26% higher than the national average. Housing dries up residents' savings even
while prices for groceries, electricity, healthcare and other goods and
services are only 7% to 15% higher than the national average.
In Los
Angeles, costs associated with housing, such as rent and mortgages, are in fact
about 140 percent more than the national average. For instance, the average
cost of a home in Los Angeles is $1.1 million compared to the $465,991 national
average.
6.
Washington, District of Columbia
(Image
credit: Getty Images)
- Cost of living: 53.4%
above the U.S. average - Median household income: $90,088
- County population: 670,050
- Unemployment rate: 4.6%
- Median home value: $669,900
When it
comes to the cost of living, the nation's capital is a tale of two cities.
According to the Cost of Living Index, housing-related costs, such as rent and
mortgages, are by far the most expensive, coming in at 2.4 times the national
average. In actuality, healthcare expenses in D.C. are around 5% lower than the
national average.
The cost
of groceries is also around 5% higher than the national average, while the cost
of utilities and other goods and services is each about 18% higher. The good
news is that transportation costs only represent a 10% increase over the
national average. The District of Columbia has an extensive bus and metro
system that makes getting there and back economical. For instance, the circulator bus only costs $1 and travels to famous locations like Georgetown,
Union Station, and the National Mall.
The
entrance to a lot of historical sites and museums is also free.
Regardless,
the average cost of a home in D.C. is $1.2 million. The average apartment costs
$3,322 per month to rent, which is $1,895 higher than the national average.
5. Orange
County, California
(Image
credit: Getty Images)
- Cost of living: 54.9%
above the U.S. average - County population: 3,167,809
- Median household income: $100,559
- Median home value: $832,300
- Unemployment rate: 2.8%
The
wealthy are associated with Orange County, sometimes known as The O.C., to the
the point where a TV show was created specifically about it in the 2000s.
The
county, which borders Los Angeles to the southeast, is made up of a number of
sizable cities, including Anaheim, Santa Ana, and Irvine. However, it's the
smaller, upscale communities like Newport Beach (typical home value: $2
million) that solidify Orange County's reputation for housing some Southern
California's wealthiest and most well-known residents.
According
to the Cost of Living Index, Orange County's average home price is really $1.3
million. It is now the fifth-most expensive market in the nation. Apartment
rents are just almost twice the national average at $3,025 per month.
Overall,
the cost of housing in the O.C. is 158% higher than the national average.
Surprisingly,
Orange County has utilities that are around 5% less expensive than the national
average while only charging about 2% more for healthcare. The cost of groceries
is around 6% greater than the US average.
4.
Brooklyn, New York
(Image
credit: Getty Images)
- Cost of living: 70.3%
above the U.S. average - Median household income: $67,567
- Borough population: 2,641,052
- Unemployment rate: 5.5%
- Median home value: $793,300
Although
technically one of the five boroughs that make up New York City, Brooklyn has
developed into something of a metropolis in its own right during the past 20 or
so years. Brooklyn's population would match that of Chicago, the third-largest
metropolis in the US, if it were a separate city.
Brooklyn
used to be thought of as a good alternative for people who couldn't afford to
reside in Manhattan. no longer. Rents and mortgage payments alone are nearly
four times more expensive than the national average.
However,
Brooklyn's median household income is actually lower than the national average.
Additionally, it is about $17,000 less than Manhattan's median household income.
Thankfully,
not everything in Brooklyn costs an absolute fortune. The cost of utilities is
around 4% greater than the national average, whereas the cost of healthcare is
just about 6% higher. Costs associated with transportation and consumables total
around 15% greater than those incurred by the average American.
Brooklyn
residents' financial struggles are made worse by the fact that New York is one
of the states with the highest tax burdens for middle-class families and
seniors.
3. San
Francisco, California
(Image
credit: Getty Images)
- Cost of living: 82.8%
above the U.S. average - Median household income: $121,826
- City population: 815,201
- Unemployment rate: 2.1%
- Median home value: $1,306,400
San
Francisco has some of the highest living expenses in the nation as a result of
years of unrelenting expansion fuelled by highly compensated tech workers, so
even individuals with generous salaries may find it difficult to get by.
Homes are
notoriously pricey, which is a barrier for those who want to buy one (opens in
new tab). According to the Cost of Living Index, San Francisco has the highest
median home value among the country's top 11 most costly cities, with an
astounding average home price of $1.5 million.
Renters
aren't any better off. In San Francisco, a one-bedroom apartment costs, on
average, $3,724 a month. Nearly three times as much as the US average. In fact,
San Francisco has housing-related costs that are four times higher overall than
those in the rest of the country.
Furthermore,
the nosebleed costs continue. Costs for groceries, electricity, healthcare and
transportation are all about 30% higher than those incurred by the average
American. Even non-essential goods and services cost around 25% higher than the
average in the country.
2.
Honolulu, Hawaii
(Image
credit: Getty Images)
- Cost of living: 86.0%
above the U.S. average - Median household income: $73,434
- City population: 345,532
- Unemployment rate: 3.4%
- Median home value: $733,000
Honolulu
residents spend more than they would on the mainland for just much everything,
and it's not difficult to understand why given the advantages of living in such
a remote Pacific paradise. The majority of the things sold in Hawaii must be
transported there by boat or airplane, which significantly raises the cost.
Of the
265 urban areas examined for the Cost of Living Index, Honolulu has by far the
most costly food. For instance, the cost of milk and bananas is around twice
that of the national average, while the cost of potatoes is over three times
higher. Overall, a trip to the grocery store is 50% more expensive than it
would be back on the mainland.
Bills
also eat up a lot of money. 35% more is spent on utilities than what people pay
on the U.S. mainland. In addition, healthcare and transportation are between 5%
and 25% more expensive than they are on average in the US.
However,
housing continues to be the main revenue drain. In Honolulu, housing-related
expenses are more than four times higher than the national average. Heck, the
cost of a home is $1.6 million on average.
Hawaii,
on the other hand, is one of the states that is friendlier to middle-class
families and one of the states that is most tax-friendly to retirees.
1.
Manhattan, New York
(Image
credit: Getty Images)
- Cost of living: 137.6%
above the U.S. average - Median household income: $84,435
- Borough population: 1,576,876
- Unemployment rate: 4.2%
- Median home value: $940,900
If you've
ever been to Manhattan, you already know how expensive it is to travel there.
However,
living there is considerably more expensive.
The
typical house value in Manhattan is second only to San Francisco on our list of
the most expensive U.S. cities, with room at a premium and location being
important. A typical apartment costs a staggering $4,531 per month, which is
more than any other city evaluated by the Cost of Living Index. The cost of a
home is currently $2.5 million on average.
There is
more budget-busting to come. Grocery costs are 26% higher for residents, and
transportation costs are 10% more than the national average. Other goods and
services, meanwhile, are 36% more expensive. For instance, a movie ticket will
cost 60% more if you wish to go. Costs for yoga lessons are nearly twice the
national average. The combination of all of these factors makes Manhattan the
most costly city in the country.
By the way, if you want to succeed in the Big Apple, you'll need to enjoy crowds:
Approximately 70,000 people live in Manhattan per square mile, according to the
U.S. Census Bureau. For comparison, San Francisco, which is already fairly
small, has 17,376 people living within each square mile.
Related: Top Cheapest Towns in U.S.