This article looks at the 26 most expensive places to live in the US. You can also read our recent article on the 20 Most Expensive US States To Live In.
American consumers are facing the burgeoning impact of rising prices like never before. The cost of living in the United States has increased significantly since the pandemic, with goods and services that cost $100 before the coronavirus now worth around $120, according to a report in Bloomberg in November 2023. Prices over the last 3-4 years in the country have risen nearly as much as in the decade before the pandemic.
A 2023 survey by the Bank of America Corporation (NYSE:BAC) revealed that more than two-thirds (67%) of the employees felt that inflation was rising at a quicker pace than their income, which reemphasized the stressful impact of the cost of living crisis on American citizens. The figure was up from 58% in Bank of America Corporation (NYSE:BAC)’s last survey held in 2022. To tackle inflation and ensure the financial wellness of its employees, the company last year announced to raise its minimum wage from $22 to $23 and has plans to increase it further to $25 by 2025, which would ensure that all Bank of America Corporation (NYSE:BAC) employees make at least $48,000 per year.
Amazon.com, Inc. (NASDAQ:AMZN) too has been actively making cost of living adjustments to wages of its employees amid increasing cost of living. Last September, it raised the hourly wage of its delivery and warehouse workers to $20.5 per hour from $19. The company has been striving to enhance the financial well-being of its employees for quite some time now, beginning first in 2018, when Amazon.com, Inc. (NASDAQ:AMZN) declared a minimum wage of $15, which was then twice the amount of the federal minimum wage in the United States. While announcing the raise, Amazon.com, Inc. (NASDAQ:AMZN)’s executives also stated that they would engage policymakers nationwide to increase the minimum wage within their jurisdictions, at both the federal and state level.
Having said that, while some companies can increase wages, most others are not able to due to the financial challenges ahead of them. One example of that is Microsoft Corporation (NASDAQ:MSFT), which after doubling the merit increases for certain employees in 2022, held back on raising the salaries of full-time employees in 2023 citing business priorities and corporate challenges. The freeze in raises has continued for well over a year now at Microsoft Corporation (NASDAQ:MSFT).
Layoffs have also been on the rise in the Microsoft Corporation (NASDAQ:MSFT) over the last couple of years, following growing pressure from investors after recording its slowest revenue growth (2%) in six years during the last quarter of 2022. Since then, the company’s stock price has increased 87% from $236.6 per share on January 3, 2023, to its current level of $442.47. Its diluted earnings per share (EPS) also marginally increased from $9.65 in 2022 to $9.65 in 2023. Workforce reductions and a freeze on merit increases have likely contributed to an improvement in the company’s financial performance.
On the other hand, Intel Corporation (NASDAQ:INTC) last year decided to slash the salaries of its employees between 5-25% depending on their position, due to a lower forecasted sale and loss of market share. Wages of hourly workers remained unaffected. Intel Corporation (NASDAQ:INTC)’s CEO Pat Gelsinger was among those whose salaries got cut.
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Methodology
We have considered consensus methodology to rank the 26 most expensive places to live in the US by averaging city cost of living index scores on two sources: Numbeo and Best Places. The most expensive places to live in the US are ranked in ascending order of their average cost of living index scores, with New York City set as the benchmark, with an index of 100, to compare against. We have also referred to other sources such as Expatistan, RentCafe, and Payscale for various statistics related to the cost of living for each city, which you will be reading in the lists section.
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Let’s now head over to the list of the most expensive places to live in the US.
26. Dallas, Texas
Average Cost of Living Index: 66.4
We begin with Dallas, where the cost of living is between 1-2% higher than the national average. The city is also 10% more expensive than the Texas state on the whole. The main factor contributing to this is the high cost of utilities.
25. Phoenix, Arizona
Average Cost of Living Index: 66.75
According to RentCafe, the cost of living in Phoenix is 2% higher than the national average, with housing being 17% more expensive. The cost of food and transportation also remains on the higher side.
24. Eugene, Oregon
Average Cost of Living Index: 67.65
Next up is Eugene in Oregon, where housing is the major contributor to the high cost of living, being 25% more expensive than America’s national average.
23. Las Vegas, Nevada
Average Cost of Living Index: 67.75
Las Vegas is popular around the world for its casinos, nightlife, fine dining, and entertainment. It was also considered to be an affordable city until some years back. However, now with the influx of tourists and the rising costs of accommodation, it is regarded among the costliest places to live in the US.
22. Philadelphia, Pennsylvania
Average Cost of Living Index: 69.05
While the cost of housing in Philadelphia is around the same level as the national average, it is offset by the high prices of utilities, groceries, and transportation.
21. Tampa, Florida
Average Cost of Living Index: 70.2
Renting a 900 sq ft house or apartment in an expensive location in Tampa can cost around $2,460 according to Expatistan, while the cost drops to $2,160 in a normal neighborhood. The city is among the most expensive places to live in the US.
20. Reno, Nevada
Average Cost of Living Index: 71
Reno in Nevada is one of the most expensive cities to live in the US, with housing 21% more costly than the national average and transportation also 17% more expensive.
19. Atlanta, Georgia
Average Cost of Living Index: 71
Atlanta is a costly place to live in due to higher utility prices and healthcare costs in the city compared to Georgia as a state, as well as other parts of the United States.
18. Austin, Texas
Average Cost of Living Index: 72.4
Austin, the state capital of Texas, is among the most expensive places to live in the US. The costs of housing, healthcare, and food are particularly on the higher side.
17. Fort Lauderdale, Florida
Average Cost of Living Index: 72.55
Fort Lauderdale is one of the most expensive places to live in the US, with housing around 55% more expensive in the city compared to both the state and the national averages. Healthcare facilities in the city, however, are relatively cheaper.
16. Chicago, Illinois
Average Cost of Living Index: 72.55
Next up is Chicago, which is one of the largest cities in the United States, and is popular for its architecture. It is also known for its educational institutions that welcome students from across the world every year. The cost of living in Chicago is 24% higher than the state average of Illinois, according to RentCafe.
15. Miami, Florida
Average Cost of Living Index: 75.35
Miami is one of the most vibrant metropolitans in the United States, known for its beaches, sports teams, and nightlife. It is among the most expensive places to live in the US, especially due to the high cost of housing.
14. Scottsdale, Arizona
Average Cost of Living Index: 75.70
According to Payscale, Scottsdale is one of the most expensive places to live in, with housing costs especially on the higher side, being 42% more expensive than the national average, according to Payscale. Grocery items are also 5% more costly than most other parts of the United States. Scottsdale is a desert city popular for its golf courses and spa resorts.
13. Denver, Colorado
Average Cost of Living Index: 76.65
Next on our list is Denver, where the cost of living is 11% higher than the national average and 4% higher than Colorado’s state average, according to RentCafe.
12. Sacramento, California
Average Cost of Living Index: 78.3
Sacramento is the capital city of the state of California, with a population of over half a million residents. Housing in the city is 43% more expensive than the national average in the US, while transportation is also 24% higher.
11. Portland, Oregon
Average Cost of Living Index: 79.2
The high cost of housing is one of the main reasons why Portland is among the most expensive places to live in the US. Buying or renting a house in the city is 50% more expensive than the national average.
10. Washington D.C.
Average Cost of Living Index: 86.35
Washington D.C. is among the most expensive places to live in the US, with a family of four having an estimated cost of $4,944 per month, without rent. The US capital is however 13.65% less expensive than New York City.
9. San Diego, California
Average Cost of Living Index: 87.9
San Diego is one of the most expensive places to live in the United States. Housing in particular is extremely costly in the city.
8. Boston, Massachusetts
Average Cost of Living Index: 89.05
Boston is popular for its robust educational institutions coupled with a booming tech industry that rivals Silicon Valley. Therefore, it is no surprise that the cost of living remains on the higher side in the city. According to Expatistan, the monthly rent for a 900 sqft furnished apartment in Boston costs an average of $4,982.
7. Seattle, Washington
Average Cost of Living Index: 91.2
Seattle is not just one of the most expensive places to live in the US, but also in the world. According to Expatistan, the cost of living in Seattle is more than 91% of the cities worldwide.
6. San Jose, California
Average Cost of Living Index: 91.25
Next on our list of the most expensive places to live in the US is San Jose, where the estimated cost of living, exclusive of rent, for a family of four is over $5,200 according to Numbeo.
5. Los Angeles, California
Average Cost of Living Index: 93.2
Los Angeles is a city that is known for its glamour and understandably is among the costliest cities to live in the United States. The city’s cost of living is 8% higher than California’s state average.