The cost of living in the U.S. has been on the rise, particularly in major metropolitan areas where job opportunities, cultural attractions, and desirable lifestyles continue to attract new residents. However, with increasing demand comes soaring housing costs, higher living expenses, and a competitive real estate market that can make homeownership a challenge for many.
If you’re considering moving or are simply curious about where the most expensive places to live are, we’ve compiled a list of the top ten most expensive cities in the U.S. based on factors such as median home prices, cost of living, and affordability. Whether you’re drawn to the West Coast’s innovation hubs, the East Coast’s financial centers, or the warm coastal cities of the South, here’s what you need to know about the cities with the highest living costs.
1. Los Angeles, CA
- Median Home Price: $950,000
- Median Household Income: $80,000
- Percentage of Affordable Homes: 5%
- Cost of Living Index: 50% above the national average
Los Angeles remains one of the most sought-after cities in the U.S., home to Hollywood, a booming tech industry, and endless entertainment options. However, with that prestige comes an incredibly high cost of living. The housing market is one of the least affordable in the country, with only 5% of homes accessible to median-income earners. Renting isn’t much easier, with median rents surpassing $3,000 per month in many neighborhoods. Additionally, high transportation costs, expensive groceries, and increasing property taxes make LA a challenging place to afford for many.
2. San Diego, CA
- Median Home Price: $900,000
- Median Household Income: $85,000
- Percentage of Affordable Homes: 6%
- Cost of Living Index: 47% above the national average
San Diego’s beautiful beaches, strong biotech sector, and perfect climate make it a desirable place to live. However, the median home price continues to climb, making homeownership difficult. While salaries are competitive, particularly in the tech and healthcare industries, affordability remains low. A major contributor to the high living costs is property taxes and limited housing supply, which keep both rent and home prices inflated.
3. Anaheim, CA
- Median Home Price: $880,000
- Median Household Income: $81,000
- Percentage of Affordable Homes: 5.9%
- Cost of Living Index: 56% above the national average
Anaheim, home to Disneyland Resort and a major tourism industry, sees consistently high housing prices due to strong demand. While many residents work in the hospitality sector, wages don’t always align with the rising cost of living. In addition to real estate, expenses such as dining, entertainment, and transportation costs add to the financial burden.
4. San Francisco, CA
- Median Home Price: $1.4 million
- Median Household Income: $159,665
- Percentage of Affordable Homes: 8.6%
- Cost of Living Index: 67% above the national average
San Francisco has long been known for its sky-high housing costs, fueled by the tech industry and a competitive job market. Even with one of the highest median incomes in the country, affordability remains a challenge. Rent prices regularly exceed $4,000 per month for a one-bedroom apartment. While San Francisco offers incredible career opportunities, world-class restaurants, and cultural attractions, it also has a homelessness crisis and one of the highest costs per square foot for housing.
5. San Jose, CA
- Median Home Price: $1.5 million
- Median Household Income: $170,034
- Percentage of Affordable Homes: 9.1%
- Cost of Living Index: 81% above the national average
As the heart of Silicon Valley, San Jose attracts top talent in the tech world. However, the region’s real estate market is one of the most expensive in the nation, with a median home price of $1.5 million. Even though salaries in San Jose are among the highest in the country, the cost of living—including housing, transportation, and dining—remains exceptionally high.
6. New York, NY
- Median Home Price: $765,000
- Median Household Income: $96,338
- Percentage of Affordable Homes: 10.1%
- Cost of Living Index: 50% above the national average
New York City is known for its fast-paced lifestyle, cultural diversity, and global influence, but it also has a notoriously high cost of living. With expensive rent (averaging over $3,500 per month for a one-bedroom apartment in Manhattan) and rising food, transportation, and childcare costs, affording NYC requires a high salary. Despite these costs, people continue to flock to the city for its job opportunities and vibrant urban experience.
7. Riverside, CA
- Median Home Price: $588,000
- Median Household Income: $90,677
- Percentage of Affordable Homes: 10.3%
- Cost of Living Index: 19% above the national average
Riverside, once a more affordable alternative to Los Angeles, has seen significant price increases in recent years. Many residents commute to LA for work, which has driven up demand for housing. The region also struggles with high transportation costs, given its dependence on cars and rising fuel prices.
8. Miami, FL
- Median Home Price: $500,000
- Median Household Income: $60,000
- Percentage of Affordable Homes: 8%
- Cost of Living Index: 30% above the national average
Miami’s warm weather, booming nightlife, and tax-friendly policies make it a desirable place to live. However, the surge in demand—partly due to remote workers moving from other states—has driven up home prices and rent costs. Utilities, insurance, and property taxes are also increasing, making Miami one of the least affordable cities in the Southeast.
9. Boston, MA
- Median Home Price: $750,000
- Median Household Income: $94,000
- Percentage of Affordable Homes: 12%
- Cost of Living Index: 48% above the national average
Boston is an academic and healthcare hub, home to top institutions like Harvard and MIT. The strong job market makes it a desirable city, but home prices remain out of reach for many first-time buyers. Transportation costs, dining, and utilities also contribute to the high cost of living.
10. Seattle, WA
- Median Home Price: $800,000
- Median Household Income: $110,000
- Percentage of Affordable Homes: 14%
- Cost of Living Index: 45% above the national average
Seattle has experienced rapid economic growth, fueled by companies like Amazon and Microsoft. While salaries in the tech industry are high, so are home prices and rent. The city also has expensive food and utilities, making it one of the costliest places to live in the Pacific Northwest.
Final Thoughts
These ten cities offer incredible career opportunities, cultural attractions, and lifestyle benefits, but they come at a high price. Housing costs, everyday expenses, and affordability continue to challenge residents. If you’re considering moving to one of these areas, it’s crucial to factor in your income, job stability, and long-term financial plans before making the leap.
Would you still move to one of these cities despite the high costs? Let us know in the comments!