When you leave the nation’s heartland and head to the coasts, prices jump. In fact, half of the most expensive cities on our list are in California. The rest are on the East Coast and in far-flung Hawaii and Alaska.
We compiled our rankings based on data from the ACCRA Cost of Living Index produced by the Council for Community and Economic Research. The Index measures relative price levels for housing, utilities, transportation, grocery items, health care and miscellaneous goods and services (it does not include taxes). A composite score of 100 reflects the national average. So scores lower than 100 reflect a lower-than-average cost of living, and scores higher than 100 reflect a higher-than-average cost of living. Median
household income and average home prices are from the
Toronto-based Martin Prosperity Institute. Our sample includes
all cities with metropolitan areas of at least 75,000 residents.

By Cameron Huddleston

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10 Most Expensive Cities For Living in the U.S.A.

Cost of Living Index: 218
Metro Population: 18,925,869
Median Household Income: $60,964
Average Home Price: $1.15 million
It should be no surprise that New York is first on this list. Housing costs four times the national average are a big reason that the overall cost of living is so high. But everything from grocery items to utilities are much pricier in Manhattan than in the rest of the nation. A New Yorker would have to make $127,935 a year to have the same standard of living as someone earning $50,000 in Fort Smith, Ark., the least expensive city.

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1. New York, N.Y.

Cost of Living Index: 163
Metro Population: 903,231
Median Household Income: $64,355
Average Home Price: $709,945
You have to pay a high price to live in this island paradise. The average home price is well above the national average. And consumer goods and services are more expensive here than in many places on the mainland.

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2. Honolulu, Hawaii

Cost of Living Index: 162.1
Metro Population: 4,222,756
Median Household Income: $72,059
Average Home Price: $815,556
With the highest home prices in California and second highest in the nation, it’s no wonder San Francisco is one of the most expensive places. However, it stays out of the second-place spot in our list because costs for grocery items and utilities are much less in San Francisco than in Honolulu.

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3. San Francisco, Cal.

Cost of Living Index: 146.5
Metro Population: 12,818,132
Median Household Income: $56,680
Average Home Price: $748,359
Orange County is home to Disneyland as well as Newport Beach (pictured here with the Santa Ana mountains as the backdrop). Some of the most exclusive and expensive neighborhoods in the nation are located here. Not only are home prices well above the national average, costs for everything from groceries to health care run higher. California also has some of the highest income taxes in the country.

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4. Santa Ana (Orange County), Cal.

Cost of Living Index: 145.9
Bridgeport/Stamford Metro Population: 903,425
Median Household Income: $66,870
Average Home Price: $626,611
Although the Bridgeport/Stamford metropolitan area is among the places where home prices have fallen most, housing costs still are twice the national average. However, the city is a much more-affordable option than nearby New York City.

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5. Stamford, Conn.

Cost of Living Index: 139.9
Metro Population: 96,920
Median Household Income: $63,044
Average Home Price: $483,150
Its distance from the Lower 48 is one reason why consumer products and services are so expensive in Fairbanks. Utility costs are two times the national average (the city is not connected to the electricity grid of the U.S. and Canada).

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6. Fairbanks, Alaska

Cost of Living Index: 137.9
Metro Population: 5,306,742
Median Household Income: $81,163
Average Home Price: $648,681
The cost of living in our nation’s capitol is high, but incomes are high, too. There are plenty of job prospects -- not just with the federal government. D.C. also has lots of great neighborhoods (with pricey homes, though) and entertainment venues -- making it our number-three pick on our Best Cities list.

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7. Washington, D.C.

Cost of Living Index: 137
San Francisco/Oakland Metro Population: 4,222,756
Median Household Income: $72,059
Average Home Price: $589,420
Home prices, on average, are a lot cheaper here than in nearby San Francisco, but they’re still at least double those in the ten least expensive cities. Rents have been on the rise in some parts of the city where there has been a push for redevelopment.

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8. Oakland, Cal.

Cost of Living Index: 136.2
Metro Population: 12,818,132
Median Household Income: $56,680
Average Home Price: $650,466
When you think of L.A., images of Hollywood, movie stars and big homes come to mind -- big, expensive homes. High housing costs have a major impact on cost of living here. And it’s not just the mansions that are costly. Home prices still top the national average even though they’ve fallen since the housing market bubble burst.

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9. Los Angeles, Cal.

Cost of Living Index: 132.3
Metro Population: 2,965,943
Median Household Income: $60,970
Average Home Price: $579,220
Although San Diego is the fifth-wealthiest city in the nation, lower housing costs make it a little more affordable than the other California cities on this list. The housing market bubble was big in San Diego, and home prices have fallen since it popped.

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10. San Diego, Cal.

10 Best Cities for the Next Decade
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5 Great Cities for Retirees
Cities Where Home Prices Have Held Up Best
Cities Where Home Prices Have Fallen Most

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