The 10 Most Expensive Cities In The US

It’s no secret that rent and housing costs tend to be significantly higher in urban environments – and we have supply and demand to blame.

With so many buildings, businesses and people squeezed within city limits, land becomes a hot commodity, which means people are generally willing to pay more for less. So, while it’s not impossible to find a more affordable place to live in the city, you’ll likely be getting less for what you’re paying due to an increased price per square foot.

So, what are the most expensive cities in the U.S. and why do people continue to live in them despite their higher cost of living? We’ve got the scoop.

How We Chose The Most Expensive Cities In The US

To build this list of the most expensive cities in the U.S., we analyzed 2022 data from Mercer, the world’s largest asset management firm, to determine the cities with the highest – the amount of money needed to afford basic necessities including housing, utilities, transportation, groceries and more. In addition to evaluating the cost of over 200 goods and services, the Mercer Cost of Living Index also accounts for currency fluctuations and inflation.

Still, cost of living is just one piece of the puzzle, so for additional context, we turned to the U.S. Census Bureau for population and median household income information, while median home price data was gathered from Rocket Homes^SM based on housing market reports listing all properties sold over the last 12 months.

So, what deems a city affordable or expensive? Along with cost of living, the cost of homeownership is an indicator of a city’s affordability or lack thereof. In home buying, most experts recommend following the 30% rule, which states that you should spend no more than 30% of your gross monthly income on housing costs. By looking at median home prices and household incomes, we can gauge how attainable this benchmark might be for the average city-dweller.

What Are The Most Expensive US Cities To Live In?

There’s no question: Choosing to settle down in a city is going to run you more than living in its surrounding suburbs or even the countryside. With such a high price tag, why do so many Americans continue to migrate towards city centers? To find out, let’s dig a bit deeper into what these pricey cities have to offer.

1. New York City, NY

• Population: 8,467,513
• Median home price: $849,756
• Median household income: $67,046

Have you ever wondered precisely what Frank Sinatra wanted so desperately to be a part of in New York, New York? Was it the big dreams or the even bigger landmarks and skyscrapers? Whatever the reason, the Big Apple has built a name for itself as a diverse, fast-moving city brimming with endless opportunity – which may be what continues to draw people to New York despite it being one of the most expensive places to live in the U.S.

New York City’s cost of living is 87.2% higher than the national average, according to Best Places. Yet even still, the population has grown by 6.0% since 2020.

2. Los Angeles, CA

• Population: 3,849,297
• Median home price: $960,678
• Median household income: $65,290

On the opposite side of the country is another city that is known for attracting dreamers: Los Angeles. The City of Angels is recognized for a few things, from the glitz and the glitter of classic Hollywood to the sunny, sandy shores of Venice Beach – but what these things all have in common is year-round good weather and a laid back, health-oriented lifestyle.

Despite its higher overall cost of living – including housing costs that are nearly 200% higher than the national average – you might be surprised to learn the costs of health care and utilities in Los Angeles are actually lower than the U.S. standard.

3. San Francisco, CA

• Population: 815,201
• Median home price: $1,195,000
• Median household income: $119,136

Just up the Pacific Coast Highway, the city of San Francisco has a personality that is just as distinct and identifiable as LA. From landmarks like the Golden Gate Bridge to historic museums, iconic festivals and authentic local cuisine, there’s plenty to experience and explore in The Golden City.

With Silicon Valley providing plentiful job opportunities throughout the Bay Area, San Francisco boasts an unemployment rate lower than the national average, with the population growing 9.5% in the last 2 years.

4. Honolulu, HI

• Population: 1,000,890
• Median home price: $751,900
• Median household income: $87,722

The state capital of Hawaii, Honolulu, is sometimes referred to as the “Crossroads of the Pacific,” serving as the main port of entry to the Hawaiian Islands. As the largest city in the state, Honolulu has developed a reputation as one of the biggest tourist destinations in the world, with a reported 7,000 to 11,000 daily visitors as of May, 2021.

But what about those who choose to call this port city home? According to The Guardian, remote work opportunities have led to an influx of newcomers relocating to the Hawaiian Islands. But Honolulu residents can expect to pay more across the board, including grocery costs that average 39% higher than the mainland.

5. Washington, DC

• Population: 670,050
• Median home price: $649,242
• Median household income: $90,842

A city that attracts college students, history buffs, and aspiring politicians alike, the U.S. capital of Washington, DC is a city unlike any other, with a unique blend of historic monuments and museums, parks and green spaces, and restaurants and entertainment. These elements are all interconnected by what is considered one of the best city public transportation systems in the country, according to U.S. News.

Our nation’s capital has experienced a 15.1% growth in population since 2020, and it isn’t slowing down now. Over the next decade, future job growth is predicted to be around 33.7% – higher than the national average.

6. Boston, MA

• Population: 654,776
• Median home price: $764,558
• Median household income: $76,298

A historic hub in its own right, the city of Boston has proudly preserved its role in American history, from the Freedom Trail, a collection of historic buildings, parks and sites, to the USS Constitution, the oldest commissioned warship afloat globally. But Boston has a lot to offer beyond its past, hosting annual events like the Boston Marathon, Harborfest and the Boston Calling Music Festival.

Boston is also known as one of the best places to raise a family, playing home to some of the nation’s top-ranked health care institutions and one of the most celebrated urban public school systems in the country.

7. San Diego, CA

• Population: 1,381,611
• Median home price: $820,016
• Median household income: $83,454

Surf’s up, dude! Although San Diego is just one of several Southern Californian cities to make this list, San Diego may be the city that feels the least…like a city. With over 70 miles of white-sand beaches and a major water sports scene, what is referred to as “America’s Finest City” makes it easy to take a break from the hustle and bustle of downtown when you need it.

The San Diego Zoo – the most visited zoo in the U.S. – is another big draw, especially for animal lovers and those with children. But reaching these type of amenities might be costly, especially due to inflation, as 74.9% of people commute by car and transportation costs are reportedly about 20% higher than the average.

8. San Jose, CA

• Population: 983,489
• Median home price: $1,303,637
• Median household income: $117,324

About an hour south of San Francisco, San Jose is another major hitter in the Bay Area. As the largest city in Silicon Valley, San Jose is home to many of the biggest companies in the technology and finance fields, which may be why the city has an unemployment rate lower than the national average, with positive job growth seen over the last several years.

And like most cities in NorCal, San Jose has comfortable, mild weather throughout all four seasons, with temperatures typically remaining between 50 and 85 degrees Fahrenheit.

9. Seattle, WA

• Population: 733,919
• Median home price: $818,093
• Median household income: $97,185

Home to big name employers like Microsoft and Amazon, the coastal city of Seattle has more to offer than its iconic Pike Place Market – though coffee fanatics should absolutely make it a point to visit the flagship Starbucks location that sits within the historic farmer’s market. The Space Needle, the Seattle Great Wheel and numerous parks and beaches round out this Pacific Coast powerhouse of a city.

A higher median household income, when combined with the lack of income tax in the state of Washington, may make living in the Emerald City more attainable for some – though housing costs are about 300% higher than the average.

10. Miami, FL

• Population: 439,890
• Median home price: $522,280
• Median household income: $44,268

As the Sunshine State’s biggest cultural and commercial hub, Miami is known to be a major tourist destination. But for all those who choose to travel to The Magic City, there are just as many who choose to stay, whether that be for the beaches or the authentic Latin influence on food and architecture. And according to U.S. News, Miami is second only to Las Vegas in terms of bars, entertainment and nightlife.

Like Washington, the state of Florida has no income tax, which may help bridge the gap between the median household income and the cost of living, which is 23.1% higher than the national average. 

What To Consider Before Moving To An Expensive City

For all that these expensive cities have to offer, they also come with some hefty price tags – so before you decide to make a move, be sure to consider the following factors:

• Income: The amount of money you earn is by far the biggest consideration to make when choosing a place to live. Consider the 30% rule to determine how much of your paycheck will be needed for housing costs in your city of choice, then take a look at estimates for other costs in the area, like utilities, food and transportation, to ensure you’ll be able to live within your means.
• Savings: How much money do you have tucked away? The state of your savings is also an important factor in any move, as you’ll likely need some cash to cover moving expenses – and you’ll require an even larger chunk of change if you’re planning to buy a house.
• Job opportunities: If you’re relocating, it’s likely due to a new job opportunity, or perhaps your current employer is offering more flexible remote work options. Regardless, it’s important to have a job lined up before you move to protect your financial future. And in general, it’s also a good idea to take a look at the job market as a whole, just in case you need to find new employment down the road.
• The real estate market: Though the state of the real estate market shouldn’t prevent you from moving if all other factors align, understanding whether your chosen city is experiencing a buyer or seller’s market can help you better prepare for home buying.

The Bottom Line

The most expensive cities in the U.S. are also some of the most popular. With growing populations, positive job markets and an impressive number of activities for locals to enjoy, it makes sense that some Americans are willing to pay up to become a resident of one of these costly cities.

Looking to make a move? Whether you’re willing to pay to enjoy the amenities or searching for more affordable alternatives, get approved to find out how much home you can afford!