Here are America’s top three most expensive cities to live in – and the number one spot is NOT New York
The most expensive American cities to live in have been revealed…
New data comes from an analysis of the cost of living in 269 urban areas by the Council for Community and Economic Research.
The index is based on how much “professional and managerial households in the top income quintile” spend on housing, utilities, groceries, transportation, health care and miscellaneous goods in each area.
The most expensive cities with more than 100,000 inhabitants in the US were found to be Honolulu, San Jose and San Francisco.
But if Manhattan were included as a city in its own right, it would take the top spot at more than double the national average cost of living..
The three most expensive and least expensive cities – with more than 100,000 residents – in the US according to the cost of living index
An index score of 100 represents the national average cost of living; anything higher is more expensive than average, and anything lower is cheaper.
Among cities with more than 100,000 residents, McAllen, Texas (80.2), Augusta, Georgia (82.8) and Amarillo, Texas (84.4) were the three cheapest.
The data also shows that coastal cities are more expensive than inland cities, with some exceptions such as Denver and Salt Lake City.
The index also shows the cost of groceries in each area.
San Francisco, Fairbanks and Juneau – both of which are in Alaska and suffer from the high costs of shipping goods – were the most expensive places to fill a shopping cart.
Most expensive cities
Third: San Francisco
San Francisco is the third most expensive city to live in the US
With a cost of living index score of 169.5, San Francisco, California is the third most expensive city to live in America.
The average rent in San Francisco is $3,395 according to Zillow, and the annual average wage for all occupations was $94,370 according to the Bureau of Labor Statistics.
The city’s location on a small peninsula prevents housing proliferation and means supply is limited, while its proximity to Silicone Valley and the tech industry means workers flock there and drive up prices.
Second: San Jose
San Jose, California is one of the most expensive cities to live in America
San Jose, California is the second most expensive city to live in America – with a cost of living index score of 171.3.
With an estimated population of around 1 million, prices in the west coast city are being driven up by high demand for housing.
The average rent in San Jose is $3,000, according to Zillow.
Its proximity to the ocean and mountains, high quality of life, and access to technology industry offices make it an attractive place to live and drive up prices.
First: Honolulu
Honolulu, Hawaii, is one of the most expensive cities in the US
With a cost of living index of 179.2, Honolulu is the most expensive city to live in the US.
Despite the high prices, the average annual wage in Hawaii’s capital was $63,730 in 2022, according to the U.S. Bureau of Labor Statistics.
But there was a huge disparity between the highest and lowest paid workers, with orthopedic surgeons earning an average of $554,600 and manicurists earning $25,790.
With a population of about 350,000, Honolulu had the third-highest median rent in the U.S. for the top quintile: $4,153.
If Manhattan were a city…
If Manhattan were a city in itself, it would be the most expensive place to live in the US
If Manhattan were a city on its own, instead of combined with the rest of New York, it would have topped the list of most expensive cities.
With a cost of living index of 227.8, living in Manhattan costs more than double the national average.
Manhattan has an estimated population of 1.6 million.
Rent is one of the leading causes of the high cost of living, with an average rate of $5,743 – compared to the national average of $1,547.
But high rents come with high wages, with the U.S. Bureau of Labor Statistics reporting an average weekly wage of more than $2,000.
Least expensive cities
Third: Amarillo, Texas
Amarillo is the third cheapest city to live in the US
Despite starring in the hit song “Is This the Way to Amarillo?” the city has managed to keep prices low.
With a cost of living index score of just 84.4, Amarillo is the third cheapest city – with a population of over 100,000 – to live in America.
The average median rent is just $1,300 according to Zillow, while the average median wage for all occupations is $48,160 according to the Bureau of Labor Statistics.
Founded in 1887, the northwest Texas city now has nearly 200,000 residents.
Second: Augusta, Georgia
Augusta is the second cheapest city to live in America
With a cost of living index of 82.8, Augusta takes the silver medal for the cheapest city to live in the US.
The city, which is located on the Savannah River, has almost 200,000 residents.
The average rent in the city is just $1,250, according to Zillow, while the average annual wage is $51,930, according to the Bureau of Labor Statistics.
The average home price in Augusta is $299,355.
At least: McAllen, Texas
McAllen in Texas is the cheapest city in the US to live in with more than 100,000 inhabitants
The small Texan city of McAllen is – with more than 100,000 inhabitants – the cheapest city to live in America.
With a cost of living index score of 80.2, this is much lower than the national average.
About 140,000 people live in the city in the Rio Grande Valley.
The average median salary is $41,610 according to the Bureau of Labor Statistics – while the average median rent is just $1,450 – less than half the rent in San Francisco.
And the city is making the most of its position, with the visitor site for the city boasting ‘mild winter weather, tropical breezes, brightly colored birds and a low cost of living’.