Which Cities Have the Highest Cost of Living?

Since the end of 2021, most people have noticed a substantial increase in the cost of groceries, gas prices, and necessities. As a result, the average cost of living nationwide has also significantly increased, especially in large metropolitan cities. As of August 2022, the cities with the highest cost of living include New York, San Francisco, Hawaii, Washington, D.C., and Los Angeles. 

About Cost of Living  

The cost of living is the amount of money needed to cover necessities such as housing, food, taxes, and healthcare. The cost of living is tied to the salary individuals earn within each city. For example, if the cost of living in New York City is higher than the national average, the average income of individuals working in New York City will be higher. 

Although the cost of living and income are closely related, a higher salary doesn’t automatically mean you can afford the cost of living, especially in larger cities. Often, the correlating income is insufficient to care for necessities, leaving many residents to make strategic budget costs to save money.

U.S. Cities with the Highest Cost of Living  

The average cost of living for a single person is $61,334 per year. With housing being the most expensive contributor to the bottom line cost, the average single person spends about $3,189 per month or $38,266 per year on housing. The cities with the most expensive cost of living are New York, San Francisco, Honolulu, Washington D.C., and Los Angeles. The list below highlights the cost of living index for each city and the average price of housing, food, and health insurance contributions to the cost of living.

Source: Best Places