What US Cities Are the Most Expensive to Live In?

With inflation rates soaring, the prices of goods and services seem to go up every day. Whether you’ve gotten sticker shock at the grocery store or you’ve had your jaw drop when you fill up your tank with gas, you’ve probably run into the increased cost of living, regardless of where you live.

However, some cities are significantly more expensive than others because of the higher cost of living. At its most basic level, the cost of living is how much it costs to acquire the basic necessities that people need.

Food, water, shelter, health care, transportation, and other necessities all get considered when deciding which cities have the highest cost of living.

Whether you’re considering a move to a different city for work, or you just like the idea of packing up and getting a fresh start and a new adventure, it’s a good idea to know the most expensive cities to live in.

Fortunately, we’ve done the work for you and have put together a list of cities with the highest cost of living.

New York City, New York

When it comes to the most expensive cities to call home, New York City, New York is at the top of virtually every list. The “city that never sleeps” may not have much time to rest because you may have to spend a lot of time working to make ends meet.

Manhattan is widely considered the most expensive part of New York City to call home, largely because of the sky-high housing market. The cost of renting or buying an apartment in the city is the highest in the world.

That’s right; housing in Manhattan is more expensive than anywhere else on the planet. This is largely because there is a high population which leads to increased demand, but there isn’t a lot of available space. Some one-bedroom apartments in Manhattan cost more than $4,800 per month.

The outer boroughs like Brooklyn and Queens have slightly cheaper housing than Manhattan, but the prices in those areas are still higher than it is in most American cities.

Housing isn’t the only thing that makes the cost of living so high in New York City. Groceries, dining out, transportation, and entertainment are all expensive, and it’s normal for residents of the area to find themselves paying a premium for even the most basic services and goods.

According to some studies, a single person can expect to spend $1,500 to $2,000 per month in New York City before calculating rent. Unless you have a great-paying job, New York City is probably a place you’d like to visit, but you may not want to call it home.

San Francisco, California

On our list of most expensive cities, let’s head to the other side of the country and visit the West Coast. San Francisco, California hasn’t always been one of the most expensive cities to live in, but after the technology boom that put Silicon Valley on the map, housing prices in nearby San Francisco skyrocketed.

To make things more complicated, the San Francisco Bay, which is what attracts many visitors to the area, actually makes it more difficult to find housing.

Since the city is surrounded by water on three sides, there’s not much space to build new homes. This means that the supply cannot keep up with the demand, which leads to higher prices.

The hilly terrain of the city makes it difficult to walk from place to place, meaning many residents also buy cars. While there are some public transportation options available, they too struggle to keep up with the demand.

When combined with the higher prices of groceries, dining out, and entertainment, combined with California’s high taxes, San Francisco is incredibly expensive to call home.

Los Angeles, California

In keeping with the high cost of California living, the “City of Angels” is another one of the most expensive cities to call home.

Most cities that attract tourists cost more to live in, and LA is one of the hottest tourist destinations in the nation. The allure of being in the center of the entertainment industry draws many people to the area, including celebrities.

With this in mind, trendy areas like Beverly Hills, West Hollywood, and Santa Monica have limited space and high demand, which is a recipe for high housing prices.

When it comes to renting an apartment in Los Angeles, you can expect to pay a premium, even if you look for a space outside of those Hollywood hotspots.

A single-bedroom apartment can cost as much as $3,900 a month while those on the lower end, which are typically smaller and in less-desirable locations can cost up to $1,800 each month.

Public transportation is pretty limited in Los Angeles, which means most people who live there also have to purchase cars, which require gas (California gas prices are among the highest in the country), insurance, and maintenance.

Additionally, since Los Angeles is seen as the epicenter of the world’s entertainment industry, something as simple as going to the movies and out to dinner can cost quite a bit.

Washington D.C.

Let’s head back east to take a look at the next entry on this list of the cities with the highest cost of living. Our nation’s capital, Washington D.C. only covers a little more than 68 square miles, seven of which are covered by water.

With this in mind, land is limited, which means there’s a finite number of housing options. This means that parts of D.C. that were once seen as “affordable” have become even more expensive as demand increases.

Since Washington D.C. is the capital of the United States, it attracts many young professionals, especially lawyers, who move to the area with political aspirations. Over time, this has led to people with more money moving into the area, effectively “pricing out” those who don’t make quite as much.

Finally, the cost of goods and services, which includes groceries, is higher than the national average. For an area that doesn’t cover a lot of land, Washington D.C. takes a lot of money to call home.

Honolulu, Hawaii

Hawaii may be your vision of paradise, but that’s probably because you haven’t had to pay bills there. As we’ve already established, most places that are popular vacation spots cost a lot to live in, and Honolulu, the capital of Hawaii, is certainly no different.

As is the case with the other places we’ve discussed, Honolulu has limited space for housing.

When you account for the fact that there’s no room for expansion since it’s an island, and you factor in the sprawling resorts that each cover multiple acres, there’s just no way for the supply to meet the demand, resulting in people who want to sell a home in Honolulu basically being able to set the price as high as they want.

Housing isn’t the only area that Hawaii is more expensive than other areas. Because of its location, virtually every product has to be imported onto the island. The cost of importing goods means that retailers have to charge shoppers more when they come to the store.

This also impacts transportation, since Honolulu doesn’t have much of a public transportation system. Since gasoline also has to be imported, you’ll pay more at the pump to keep your car on the road.

There’s certainly no denying that Honolulu is one of the most beautiful cities in the world. However, it costs so much to live there that Hawaii ranks as the most expensive state in the US to live in.

Most Expensive U.S. Cities

Being able to move to a new place is a great feeling, but it’s important to think of how much it’s going to cost once you get there. If it’s in your budget to call one of these expensive cities home, then you can certainly do so.

However, if it’s not financially wise to move to a place with a high cost of living, consider looking at some places that are close to these places but may offer a cheaper alternative.