Ever wondered which US cities are the most expensive to live in? The 2024 Cost of Living Index (COLI) has the answers. It ranks 271 urban areas based on everyday expenses, from housing to groceries.
No shock here – Manhattan tops the list. Some neighborhoods cost a whopping $2,400 per square foot.
Ready for the top 10 budget-busters in America? Let’s dive in:
Manhattan, New York: 231
With a staggering COLI of 231, Manhattan takes the crown as the most expensive place to live in America. The average monthly rent for a 1-bedroom apartment in this borough is a whopping $4,831, and a gallon of milk will set you back around $5.53. Your Energy bill could come up to an average of $201.27 per month!
Honolulu, Hawaii: 186.2
Paradise comes at a price, and in Honolulu, that price is high. With a COLI of 186.2, this tropical city is the second most expensive in the U.S. A family of four can expect to spend around $5,235.50 monthly, not including rent. You’d have to pay an average of $82.50 for a three-course meal in a midrange restaurant here. Renting a 3-bedroom apartment in the city center would cost you $3,864.29 monthly. Aloha, indeed.
San Jose, California: 177.1
The heart of Silicon Valley is also a wallet-buster, with a COLI of 177.1. The average monthly salary after tax is a hefty $6,593.94, but you’ll need it to afford the $2,839.38 average rent for a one-bedroom apartment in the city center, plus paying roughly $275.61 for basic utilities such as electricity, heating, water, etc.
San Francisco, California: 169.6
Just up the road from San Jose, San Francisco is another notoriously pricey place to call home. With a COLI of 169.6, you can expect to shell out $3,131.80 for a one-bedroom apartment in the city center, $28.38 for a haircut, and $16.02 for a movie ticket.
Brooklyn, New York: 161.5
Manhattan’s hip neighbor is only slightly less expensive, with a COLI of 161.5. Housing costs in Brooklyn are 183% higher than the national average with the monthly rent being a steep $3,604 on average. A dentist appointment will set you back by $163.78 and your energy bills could be as high as $244.56 per month!
Orange County, California: 154.9
The sunny suburbs of L.A. come with a hefty price tag, with a COLI of 154.9. If you’re a family of four, you would need to earn $114,841 annually if you want to live comfortably in The O.C. Healthcare bills can be as steep as $1,083 with housing costing an estimated $2,331 average per month.
Los Angeles, California 150.6
The City of Angels is heavenly, but nothing about it is cheap. The cost of living index in LA stands at a lofty 150.6, meaning a modest one-bedroom apartment in the heart of the city will set you back approximately $2,831.25 per month. And if you fancy a three-course meal at a mid-range restaurant, you will have to cough up about $68.25 (for two people).
Queens, New York: 146.9
The largest borough of New York City has a COLI of 146.9. Housing in Queens is 120% more expensive than the national average with an estimated monthly rent of $2,958, energy bills coming up to $193.78, and an average of $165.17 for a dentist appointment.
Washington, D.C.: 144.6
With a Cost of Living Index of 144.6, the nation’s capital is sure to cost a pretty penny. The average monthly rent for an apartment in D.C. is around $2,390, and if you want to buy a house, you’d have to shell out at least $1,175,977 with a mortgage rate of about 6.97%.
Boston, Massachusetts: 144.3
Rounding out the list is Boston, with a COLI of 144.3. A one-bedroom apartment in the city center averages $3,169.46 per month, and a pair of jeans will run you about $60.62. Childcare costs (for one child) are a whole other story, as prices could total up to $2,528.57 per month.
Wrapping Up
As evidenced above, the cost of living in Manhattan is more than twice the national average. Manhattan and the rest of the areas in the list are known for having some of the highest housing costs in America, which isn’t surprising, as large U.S. cities tend to lure huge numbers of people due to their higher concentration of jobs. The higher demand for housing means higher housing costs.
In addition to being hubs of job opportunities, some of these places, like Honolulu and Manhattan also have land scarcity, which limits the number of housing that can be built. This lack of housing further contributes to the upward trend of home pricing.
It’s also worthy to point out that New York City is home to 350,000 millionaires with many of them living in Manhattan. The concentration of wealth in the area also drives up housing prices, which explains why Manhattan is home to some of the most expensive U.S. neighborhoods based on square footage.