The signs that the economy is starting to improve are subtle, but they do exist. Whether it be through the slow decline in gas prices or the fact that the housing market is starting to stabilize, the country is starting to breathe a sigh of relief that perhaps we could stop pinching our money to stop so tightly. However, in some areas, keeping a tight grip on your dollar is more than just trying to stay afloat in tough economic times; it’s just the price you have to pay to live and have a mortgage in an expensive city.
Each quarter, the Council for Community Economic Research (C2ER) produces a cost of living index that measures the average cost of living in metropolitan cities in the United States. To compile the data, C2ER collected about 60 different items that were common to a variety of metropolitan areas, from groceries to medical and accommodation costs. From this, the C2ER compares the price of these items and calculates an index number. An index greater than 100 indicates an above-average cost of living. For example, if you make $ 100,000 in the average city, you need to make $ 121,000 in Seattle, which has a score of 1-1.21.
Here are the 5 most expensive cities in the United States.
5. Boston, MA 1-1.30
Boston is one of the most popular cities on the East Coast. It is a comfortable city that takes great pride in its historic charm and beauty. The city has the largest concentration of colleges in the country (so it’s an educated and studious city), an extensive network of public transportation, and some of the best cultural attractions in the United States. a city with such a wide range of culture, history, and charm for its inhabitants is the high cost of the house. The reason Boston comes in at number 5 on our list is almost entirely a factor if their house prices.
4. Washington DC 1-1.38
Washington DC – the capital of our country – has one of the strongest job markets in our country. This is largely due to the number of employers and government contracts based in the city. This, plus its central location, makes it a very desirable place to live. Keep in mind, though the average price for a one-bedroom apartment is around $ 1,100 per month – a bit for a small space. But you pay for the location and the luxury. Add mild winters and beautiful summers, national museums and the variety of activities available all year round and it becomes clear why Washington DC is number four on the list.
3. Los Angeles, CA 1-1.40
Los Angeles – home to celebrities, movie stars, glamor and thousands of hopes and dreams of wealth gilded in gold. Everyone has considered moving to Los Angeles to “succeed”. It is the hotspot in Los Angeles and anyone who has lived or worked there at some point in their career. While southern California can be the epitome of excess and luxury, it is also home to family places like Disney World, Magic Mountain, Universal Studios, Knott’s Berry Farm. Overall, the general cost of living in Los Angeles can be quite affordable, surrounding areas like Bel Air and Beverly Hills, and the lack of public transportation really adds to the cost of living and house prices.
2. San Francisco, CA 1-1.62
San Francisco – the cool brother from North Los Angeles. The northern California ambiance is much more relaxed and friendly than its southern counterpart. The greenery, the cooler climates, the views all reinforce the weary atmosphere of the city. It’s a big city with a culturally diverse community, which means more places to explore, more sites to see and certainly more delicious food! Living in San Francisco means lots of access to outdoor activities, an active nightlife, and a laid back atmosphere. However, the tech boom has made it a hot spot for people and businesses around the world – pushing the already expensive cost of buying a home even higher because the product doesn’t keep up with demand.
1. New York, NY 1-2.17
Is it any wonder that New York tops the list of the most expensive American cities to live in? It is one of the most famous cities ever immortalized in movies, comics, cartoons and the hearts of millions of people around the world. The Big Apple wins first place on the list due to the outrageous housing market for renters and buyers. On average, NYC has an average home price of $ 1.1 million, while an average apartment can cost tenants $ 3,400 a month. While it may seem outrageous, the price of having a place to hang your hat is worth it when you have places like Central Park, Broadway, Yankee Stadium or some of the world’s best museums at your disposal.
The thread that connects these cities is not location or amenities; it’s the cost of owning or renting a home. Homebuyers looking to stop renting or current homeowners looking to take advantage of historically low-interest rates should look no further than Quicken Loans. Whether you are looking for a dream home in the city of angels or in the city that never sleeps, one of our highly qualified mortgage experts can help you finance a new home loan or refinance your existing loan.
Cities have an undeniable magnetism that draws us to their bustling streets. They promise better job opportunities and more convenient transportation, but what really gets us off our couches is the feeling of possibility that they spark in us. As we stroll down the sidewalk, we find that the people who surround us are just as diverse as the architecture that looms over us.
Whether you’re looking for a museum to inspire your creativity, a restaurant to tickle your taste buds, a game to raise your anxiety or even just a special person to share all these experiences with, you can find what you seek in one of the U.S.’s many urban jungles. Yet, these stimulating sights, tastes and sounds can come with a hefty price tag.
Have you ever wondered how much it would cost to call one of these cities your home? If so, you’re in luck – we’ve done the research for you! After scouring and analyzing the data, we’ve gathered a list of the most expensive cities in our country to help you determine if city life is really for you.
Most Expensive Cities In The US: Methodology
To accumulate the list of the most expensive places to live in the U.S., we began by studying the cities with the highest cost of living. Cost of living refers to the amount of money required to afford the basic necessities of everyday life.
To identify the cost of living for cities across the U.S., we consulted the 2019 Q2 data collected by the Council for Community and Economic Research. Its Cost of Living Index analyzes the prices of groceries, housing, utilities, transportation, health care and miscellaneous goods and services (like dry cleaning, toiletries and movie tickets) in 255 urban areas. These costs are categorized and weighted to calculate a composite score, which shows just how expensive these cities are compared to the national average
While the Cost of Living Index is crucial for determining the rank of U.S. cities, it’s difficult to gauge whether you could afford to live in these cities by looking at the data alone. To provide you with a clearer picture of what life would look like as a resident of these cities, we turned to the U.S. Census Bureau and the St. Louis Federal Reserve.
We sourced data from the U.S. Census Bureau to provide insight into the populations, household incomes and poverty rates of these areas. The population data presented represents 2018 estimates, while all other Census data is based on 2017 figures. We pulled data on unemployment rates for June 2019 from the St. Louis Federal Reserve and returned to the Council for Community and Economic Research for data on the prices of specific items in each of the categories mentioned above. Finally, we adjusted the median household income by the cost of living for each city to show how far a resident’s income would go when accounting for the varied financial burdens of each area.
Cost Of Living In The US: What’s The National Average?
But to understand our findings, you must have a better sense of how the city-level statistics compare to the national average. The following figures provide a snapshot of our country as a whole:
Median household income: $57,652
Median home price: $311,927
Median monthly rent: $985
Unemployment rate: 3.8%
Poverty rate: 11.8%
Cost of a half-gallon of milk: $1.93
By comparing this information with the facts for each city, you’ll be able to discover which (if any) of these cities is right for you. So without further ado, here’s the list of the 15 most expensive cities in the country.