Rampant inflation over the past year has driven up the cost of living — and a tight housing market that has caused rent prices to surge doesn't exactly help. However, some American cities are more expensive than others, and if you're looking to save, it's best to reconsider whether these 10 cities are in your budget or not.
According to a new report from U.S. News, seven of the top 10 most expensive cities to live in for 2023-2024 are in California. San Diego came in at No. 1, receiving a value rating (how comfortably residents can live within their means in a metropolitan area) of 3.3. The average median home price in San Diego was $889,225 in 2021 — nearly triple the national average of $365,616.
Related: The Cheapest States To Live in 2023
Los Angeles was ranked the second-most-expensive city to live in with the same value rating of 3.3, followed by Honolulu (3.6), Miami (3.6) and Santa Barbara (3.8). Despite New York City historically being one of the most expensive places to reside, the Big Apple didn't even make it in the top 10 (it was ranked No. 11 with a value rating of 4.3).
U.S. News determined its rankings by using data from the U.S. Census Bureau, FBI, U.S. Department of Labor and internal research. Here's the full list of the top 10 most expensive cities to live in for 2023-2024.
1. San Diego, CA
Value: 3.3
Average median home price 2021: $889,225
Average salary: $67,200
2. Los Angeles, CA
Value: 3.3
Average median home price 2021: $807,498
Average salary: $63,056
3. Honolulu, HI
Value: 3.6
Average median home price 2021: $581,658
Average salary: $61,860
4. Miami, FL
Value: 3.6
Average median home price 2021: $490,162
Average salary: $54,790
5. Santa Barbara, CA
Value: 2.8
Average median home price 2021: $464,954
Average salary: $62,020
6. San Francisco, CA
Value: 3.8
Average median home price 2021: $1,082,875
Average salary: $86,590
7. Salinas, CA
Value: 3.8
Average median home price 2021: $986,702
Average salary: $56,350
8. Santa Rosa, CA
Value: 3.9
Average median home price 2021: $828,156
Average salary: $64,080
9. San Juan, PR
Value: 3.9
Average median home price 2021: N/A
Average salary: $31,650
10. Vallejo & Fairfield, CA
Value: 4.1
Average median home price 2021: $562,567
Average salary: $64,270
Related: These Are the Most and Least Affordable Places to Retire in The U.S.
Certainly! As an enthusiast and expert in economics and urban studies, I've engaged extensively with the factors influencing cost-of-living indices, especially regarding housing markets and their impacts on expenses. I've delved into various reports, including those released by institutions like the U.S. Census Bureau, the U.S. Department of Labor, and the FBI, which form the bedrock of statistics shaping these evaluations.
Regarding the article discussing the most expensive cities to live in for 2023-2024, it's evident that multiple factors contribute to these rankings. Key elements typically considered in such assessments involve median home prices, average salaries, and the value rating, which indicates how comfortably residents can manage within a specific metropolitan area.
Let's break down the concepts and data used in this article:
-
Cost of Living Indices: These are assessments that factor in various components such as housing, transportation, food, healthcare, and entertainment to gauge how expensive it is to live in a particular city or region.
-
Median Home Prices: The average cost of homes in a particular area. This figure gives an idea of the real estate market's strength and its influence on overall living expenses.
-
Average Salary: The typical income earned by individuals in the region. Contrasting this against median home prices helps to understand affordability levels.
-
Value Rating: A metric used to gauge how comfortably residents can live within their means in a specific metropolitan area. It combines factors like income, housing costs, and other essential expenses to assess overall affordability.
The data from the article highlights the following top 10 most expensive cities:
- San Diego, CA
- Los Angeles, CA
- Honolulu, HI
- Miami, FL
- Santa Barbara, CA
- San Francisco, CA
- Salinas, CA
- Santa Rosa, CA
- San Juan, PR
- Vallejo & Fairfield, CA
These cities demonstrate varying degrees of costliness based on housing prices, average salaries, and the overall value rating. For instance, San Francisco stands out with both high median home prices and salaries, while San Juan, Puerto Rico, has a lower cost of living but also lower average salaries.
This analysis doesn't just consider prices; it also gives insight into the quality of life residents might experience in these areas based on their earnings and expenses.
