With housing costs increasing, the cost of living in some metro areas in the United States is also rising, hitting more than twice the national average in some places.
Home prices in the US reached an all-time high in April, rising by 6.3% year-over-year. The median monthly rent in the country also soared to $1,653, which is 17% higher than the typical household income of $54,712.
The Council for Community and Economic Research recently published its Cost of Living Index, which measured regional price differences of everyday goods and services in 271 urban areas in the country from January 1, 2024, through March 31, 2024. The analysis took into account six factors, including groceries, health care, housing, miscellaneous goods, transportation, and utilities.
The analysis assigned a composite score to each area. Any score higher than 100 is above the national average.
Of all metro areas, Manhattan was the most expensive place to live in the US, with the cost of living more than twice the national average. The borough has scarce land for real estate, and it is also home to more than 300,000 millionaires, which is the highest in the country. Furthermore, a lack of supplies increases home prices in the area, with the median price being $1.3 million per Redfin.
On the other hand, Decatur ranked as the cheapest city to live in. The average home in Decatur is $92,563. In comparison, the national median sale price is $438,601.
Where the Costs of Living Are Highest
1. Manhattan, New York: 231.0
2. Honolulu, Hawaii: 186.2
3. San Jose, California: 177.1
4. San Francisco, California: 169.6
5. Brooklyn, New York: 161.5
6. Orange County, California: 154.9
7. Los Angeles-Long Beach, California: 150.6
8. Queens, New York: 146.9
9. Washington DC: 144.6
10. Boston, Massachusetts: 144.3
Where the Costs of Living Are Lowest
1. Decatur, Illinois: 78.8
2. Ponca City, Oklahoma: 79.4
3. Edinburg, Texas: 80.9
4. Pittsburg, Kansas: 81.8
5. Richmond, Indiana: 81.9
6. Harlingen, Texas: 82.0
7. Kokomo, Indiana: 82.9
8. Amarillo, Texas: 83.1
9. Jonesboro, Arkansas: 83.3
10. Oklahoma City, Oklahoma: 83.6
