America’s Most Expensive Cities

Why would someone want to live in one of the most expensive cities in the U.S.? Despite high real estate prices and costly expenses, expensive cities can attract newcomers with things like great weather, scenic surroundings, a booming economy, ample job opportunities, an abundance of cultural activities, world-class museums, recreational opportunities, diverse restaurants and more.

So, where are the most expensive cities in the U.S. located? To find out, we looked at the Council for Community and Economic Research’s Cost of Living Index calculations from 2020. The study measured regional differences in the cost of living between 274 urban areas. According to the study, “the composite index is based on six component categories – housing, utilities, grocery items, transportation, health care, and miscellaneous goods and services.”

In addition, we included real estate data (median home list prices and rental prices) from Realtor.com and other important demographic data from the U.S. Census Bureau to get a closer look at the big picture. Here’s a quick glance at the most expensive urban areas in the country and the least expensive areas.

Here are the most expensive cities in the U.S.

According to the Council for Community and Economic Research, here are the urban areas with the highest cost of living in America.

New York, New York (Manhattan and Brooklyn)

Manhattan, NY

Cost of living index score: 237.0
Median home list price: $1.25M
Median rent: $2,800 a month
Median household income:$86,553
Per capita income:$76,592
Population: 1,628,706

Brooklyn, NY

Honolulu, Hawaii

San Francisco Bay Area, California (San Francisco and Oakland)

San Francisco, California

Cost of living index score: 192.3
Median home list price: $1.34M
Median rent: $3,050 a month
Median household income: $112,449
Per capita income: $68,883
Population: 881,549

Oakland, California

Seattle, Washington

Washington, DC

Boston, Massachusetts

Los Angeles, California

5 tips for moving to an expensive city without going broke

It is possible to live within your means while living in an expensive city if you’re prepared to make a few lifestyle changes. Here are 5 tips for moving to an expensive city without going broke.

  1. Take advantage of free classes and events – Often, big cities have an abundance of free cultural events to enjoy. From workout classes to free outdoor festivals, take advantage of as many no-cost classes and events as possible.
  2. Split the rent with roommates – Living in a neighborhood and rental unit that you can afford will go a long way in saving you money every month. You can go one step further by splitting the housing and utility costs with roommates. According to many financial experts, you should also keep the 30 percent rule in mind, which states that you shouldn’t spend more than 30 percent of your monthly income on housing costs.
  3. Use public transportation – Expensive cities typically have excellent public transportation options. From commuter trains to bus systems, using a reliable form of public transportation to get from point A to point B will likely save you thousands of dollars every year. The initial cost of owning a car, auto insurance payments, gas refills and expensive parking privileges add up quickly. If you plan to use public transportation to get to work, check to see if your employer will pay the cost of your daily commute.
  4. Find a side hustle – If you have the time, energy and passion, we recommend starting a side hustles like starting an Etsy shop selling your crafts or artwork, freelancing for local publications and blogs, teaching gym classes before or after work and walking dogs or pet sitting – among many others.
  5. Create a budget and stick with it – Finally, the most important thing you can do when moving to an expensive city is to create a reasonable budget and stick with it. Include everything from your housing, groceries and transportation to events, “fun money,” savings and student loans.

What are the least expensive cities in the U.S.?

Here are the 10 least expensive urban areas in the country, according to the latest study by the Council for Community and Economic Research.

  1. Harlingen, TX
  2. Kalamazoo, MI
  3. Amarillo, TX
  4. McAllen, TX
  5. Tupelo, MS
  6. Pittsburgh, KS
  7. Joplin, MO
  8. Jackson-Madison County, TN
  9. Muskogee, OK
  10. Richmond, IN

Ready to move to one of these cities?

To learn more about these U.S. cities, check out Moving.com’s City Profile Report feature. Our reports include city demographics, real estate information, quality of life factors and more. Simply enter the zip code or the state and city of your potential move to get a free report at the click of a button. If you want to make one of these cities your new home, you may need to hire professionals to handle your relocation. Fortunately, Moving.com’s extensive network of licensed and insured movers makes it easy to book the best moving company for the job.