In the realm of exorbitant living expenses in the United States, some cities surpass all expectations. According to the recently released Cost of Living Index by the Council for Community and Economic Research, here are the top 10 most expensive urban areas that will make your wallet cry:
1. Manhattan, New York: A Whopping 231
Unsurprisingly, the borough of Manhattan reigns supreme as the priciest place to reside in the entire country, with living costs soaring over double the national average.
2. Honolulu, Hawaii: Pricey Paradise at 186.2
Following closely behind is Honolulu, where the cost of living, although eye-watering, stands in stark contrast to Manhattan's staggering rates.
3. San Jose, California: 177.1
In the golden state, San Jose claims the third spot, where expenses, though high, are relatively more affordable than the top two contenders.
4. San Francisco: 169.6
San Francisco secures the fourth position, proving that Californian cities dominate the list of costly places to call home.
5. Brooklyn, New York: 161.5
Manhattan's sibling borough, Brooklyn, makes an appearance as the fifth most expensive urban area on the index.
6. Orange County, California: 154.9
The Californian trend continues with Orange County, renowned for its luxurious lifestyle and equally high living costs.
7. Los Angeles (Long Beach): 150.6
Nestled in sunny California, the city of Los Angeles in Long Beach shows no mercy when it comes to draining your bank account.
8. Queens, New York: 146.9
Yet another addition from New York, Queens takes its place among the top 10, solidifying the state's reputation for premium living expenses.
9. Washington, D.C.: 144.6
The nation's capital, Washington, D.C., proves that political power comes with a price, and that price is steep.
10. Boston: 144.3
Rounding up the list is Boston, where historical significance meets economic strain, making it one of the most expensive urban areas to reside.
These urban areas are notorious for their sky-high housing costs, attributed to the high demand for housing due to job concentration. Furthermore, limited land availability in cities like Honolulu and Manhattan further exacerbates the housing crisis by restricting new construction.
The wealth concentration in Manhattan acts as a driving force behind its exorbitant prices, boasting the highest number of millionaires in the country. This concentration of wealth significantly impacts the real estate landscape, resulting in some of the most expensive neighborhoods per square foot. Take the West Village, for instance, where homes command a median price of a staggering $2,400 per square foot.
Contrastingly, Decatur, Illinois, emerges as an oasis of affordability on the list, with a Cost of Living Index score of 78.8, making it 22.2% cheaper to reside in compared to the national average.
The data collected for the Cost of Living Index spanned from Jan. 1, 2024, to March 31, 2024, with each category meticulously weighed based on household expenditure patterns from government surveys.