Living in an expensive city has its apparent advantages. The lifestyle typically offers a variety of amenities, convenient public transportation, vast cultural options and better job opportunities. Needless to say, there’s a price attached to residing in a premium urban landscape. In many cases, you’ll pay a higher price tag for housing, food, utilities, gas and healthcare.
If you’re considering a move to an expensive city, it’s crucial to understand the cost of living there. This information empowers you to make a more informed decision about the impact on your lifestyle and finances.
Top 10 Most Expensive Cities in the United States
This list of the most expensive places to live is determined by the 2024 Cost of Living Index released by the Council for Community and Economic Research (C2ER). This index is based on data from six categories: housing, transportation, health care, utilities, grocery items, and miscellaneous goods and services.
1. Manhattan, NY
Manhattan, New York, is the most expensive city in the United States according to C2ER’s 2024 Cost of Living Index. This bustling metropolis always has something exciting and interesting to offer. It also has some of the world’s best theaters, restaurants, museums, parks and cultural centers.
There are several reasons why housing is so expensive in Manhattan. The borough is home to a high percentage of wealthy people who can afford extravagant homes, pushing up average housing costs. However, the high cost of living doesn’t dissuade people from moving to Manhattan, and the population continues to grow. Additionally, real estate in New York City is limited and highly sought after, contributing to high housing prices.
- Population: 1.7 million
- Median Household Income: $95,866
- Median Home Value: $1 million
- Median Monthly Rent: $1,753
2. Honolulu, HI
Honolulu, Hawaii, is the cultural and culinary hub of the Hawaiian Islands. Known as the Crossroads of the Pacific and the largest city in Hawaii, Honolulu is home to almost a million residents. In addition to surf, sand and year-round sunshine, Honolulu offers fresh local cuisine, diverse museums and eclectic shops.
Before you run off to go on a permanent holiday, consider that almost everything on the island is expensive. For example, groceries must be shipped from the mainland, so they cost more than the national average. In addition, utilities cost more than twice as much as the national average.
According to the Census Bureau’s American Community Survey, the median household income in Honolulu is nearly $97,000. That’s more than the national average of about $74,600, but falls short of San Francisco’s median household income of $136,700.
- Population: 995,638
- Median Household Income: $96,580
- Median Home Value: $874,500
- Median Monthly Rent: $1,774
3. San Jose, CA
San Jose, California, is referred to as the “Capital of Silicon Valley,” where the tech and financial industries thrive. Consequently, there are a myriad of job opportunities and a lower unemployment rate than the rest of the country. San Jose has a higher cost of living than the national average. However, it’s important to note that the median household income is also higher at nearly $134,000.
If good weather is an important aspect for you, San Jose offers an average of 300 sunny days per year. Buying a house in San Jose can be pricey, with median home value hovering around $1.2 million.
- Population: 971,265
- Median Household Income: $133,835
- Median Home Value: $1.2 million
- Median Monthly Rent: $2,223
4. San Francisco, CA
San Francisco, California, is an attractive destination known for its natural beauty, diverse culture, and job opportunities. The city boasts stunning views of the Pacific Ocean, the Golden Gate Bridge and surrounding hills and mountains. There are also lush green spaces such as Golden Gate Park, the Presidio and Lands End.
Still, the bay area is infamous for its high cost of living, especially when it comes to housing. The median home value in San Francisco is $1.3 million. Meanwhile, the median monthly rent for an apartment is $1,959. Overall, housing-related costs in San Francisco are about three times greater than the national average. Additionally, C2ER ranks San Francisco as one of the top five most expensive cities for utilities and groceries.
- Population: 808,437
- Median Household Income: $136,692
- Median Home Value: $1.3 million
- Median Monthly Rent: $1,959
5. Brooklyn, NY
This New York City borough offers certain lifestyle aspects that Manhattan does not. There’s a sense of community and a dense urban atmosphere with lots of bars, restaurants and coffee shops. Additionally, Brooklyn, New York, offers cultural attractions like the Brooklyn Botanic Garden and Arboretum, the Brooklyn Academy of Music and the Brooklyn Museum.
In the not-too-distant past, Brooklyn was a popular choice for people who couldn’t afford to live in Manhattan. However, things have changed. The cost of housing, including rent and mortgages, is higher than the national average. At the same time, the median household income in Brooklyn is slightly lower than the U.S. median. Additionally, healthcare costs are also more expensive.
- Population: 2.6 million
- Median Household Income: $73,951
- Median Home Value: $849,900
- Median Monthly Rent: $1,483
6. Orange County, CA
People choose the “O.C.” for many reasons. It’s only an hour’s drive to Los Angeles, which makes it ideal for commuters. Beaches are a big draw, as are local parks and recreation. Many school districts are highly ranked, making it a good place to raise a family.
Orange County, California, has a thriving cultural scene with art and history museums, world-class restaurants and unique events. There are also lots of Fortune 500 companies headquartered here, creating job opportunities.
- Population: 3.2 million
- Median Household Income: $106,209
- Median Home Value: $940,900
- Median Monthly Rent: $1,929
7. Los Angeles, CA
It’s probably not surprising that Los Angeles, California, known for its excessive glitz and glamor, landed on this list. However, people who live in L.A. move here for its moderate climate, expansive beaches, diverse cultural scene and entertainment. It doesn’t hurt that you’ll most likely spot celebrities throughout your typical day.
Housing costs are a significant contributing factor to the high cost of living in Los Angeles. Census Bureau data shows that the median home value is $903,700 and the median household income is roughly $76,000.
- Population: 3.8 million
- Median Household Income: $76,135
- Median Home Value: $903,700
- Median Monthly Rent: $1,554
8. Queens, NY
With a population of 2.3 million, Queens is the largest New York City borough. It continues to attract residents for numerous reasons. There’s good proximity to Manhattan and two major airports: John F. Kennedy International Airport and LaGuardia Airport. There’s also easy access to major highways and accessible public transportation.
- Population: 2.3 million
- Median Household Income: $80,557
- Median Home Value: $683,600
- Median Monthly Rent: $1,641
9. Washington, D.C.
Our nation’s capital is home to some of the most renowned American buildings and monuments. These include the White House, the Washington Monument and the Capitol Building, just to name a few. With more than 20 million visitors each year, there’s no doubt that Washington, D.C., has plenty to offer in terms of rich history and vibrant culture.
Jobs in government and the private sector are plentiful, but living in the District of Columbia comes at a cost. Nearly 672,000 people call D.C. their home. Median home values in the district are around $711,100, and the median household income is about $101,000.
- Population: 671,803
- Median Household Income: $101,027
- Median Home Value: $711,100
- Median Monthly Rent: $1,603
10. Boston, MA
Boston is a great place to live and raise a family if you have the means. It has a low crime rate, good walkability and a reliable public transportation system. There is easy access to green spaces, including some of the oldest and most historic parks in the country. In particular, Boston Common dates back to 1634. There’s also a vibrant culture, diversity and world-class restaurants and entertainment.
Renowned universities, such as Harvard, Massachusetts Institute of Technology and Tufts, make Boston a hub for students, recent grads and young professionals. However, housing-related costs can be challenging. Both renters and homeowners pay more than the national average.
- Population: 649,768
- Median Household Income: $86,331
- Median Home Value: $701,400
- Median Monthly Rent: $1,735
Living in an Expensive City: A Balance of Cost vs Value
Despite the higher costs, living in expensive cities has several advantages. Some of the benefits include:
- Infrastructure and Amenities: Expensive cities often have well-developed infrastructure, including public transportation, health care facilities, parks and recreational spaces. This can lead to a better quality of life and greater convenience.
- Diverse Opportunities: Expensive cities offer a wide range of opportunities for personal and professional growth. Living in an expensive city can provide access to resources and support networks. This includes opportunities in entrepreneurship, the arts and technology.
- Healthcare: Expensive cities usually have access to top-tier healthcare facilities and specialists. This ensures that residents can receive high-quality medical care when needed.
- Job Opportunities: Living in an expensive city can be a gateway to a fulfilling career. There’s typically a higher concentration of businesses and job opportunities. This environment can make it easier to find employment in your field. It can also provide a platform to advance and achieve your career goals.
- Cultural Offerings: An expensive city can be a treasure trove of rich cultural scenes. They offer everything from museums and art galleries to theaters, music venues, and diverse culinary options. These offerings are not just for entertainment. There’s opportunity for exploration and personal enrichment, with a world of experiences waiting to be discovered.
- Quality Education: Many expensive cities are home to top universities, research institutions and educational opportunities. Living in such cities can provide you and your family access to high-quality education.
- A Cosmopolitan Lifestyle: Expensive cities attract people from all over the world. Living in a desirable area can expose you to different cultures, languages and perspectives. The benefits include broadening your worldview and enriching your life experiences.
Cost of Living Index: 10 Most Expensive Cities in the U.S.
| City | Cost of Living Index |
| New York, NY | 231.0 |
| Honolulu, HI | 186.2 |
| San Jose, CA | 177.1 |
| San Francisco, CA | 169.6 |
| Brooklyn, NY | 161.5 |
| Orange County, CA | 154.9 |
| Los Angeles, CA | 150.6 |
| Queens, NY | 146.9 |
| Washington, D.C. | 144.6 |
| Boston, MA | 144.3 |
Most Expensive Cities: Frequently Asked Questions
No. Manhattan, New York, is the most expensive city in America. However, housing in San Diego is pricey. For owner-occupied homes, the U.S. Census Bureau indicates a median home value of $905,300.
San Francisco, California, has the highest home prices among the 10 most expensive cities. The U.S. Census Bureau reports that the median home value for owner-occupied homes in San Francisco is roughly $1.3 million.
Seattle is not one of the 10 most expensive cities in America, according to the Council for Community and Economic Research. However, homes are expensive in Seattle. Census Bureau data indicates that the median value of owner-occupied homes in Seattle is $924,200.
Susan Pascal’s wealth of journalism experience includes editing Maria Shriver’s weekly Sunday Paper, overseeing three neighborhoods for Patch.com, and writing “Images of America: Agoura Hills,” a book about a historic community in the Santa Monica Mountains. Although she’s a proud New York native with a bachelor’s in communications from New York University, Susan also spent years in the Golden State. As a publicist in the entertainment industry, she worked closely with A-listers like Brad Pitt and Harrison Ford. Susan currently lives in the historic Virginia neighborhood of Church Hill.
