Top 30 Costly US Cities to Reside in by 2024

Top 30 Costly US Cities to Reside in by 2024

In this article, we will take a look at the 30 most expensive cities to live in the US in 2024. If you would like to skip our discussion on the US economy, you can go to the 5 Most Expensive Cities to Live in the US in 2024.

In June 2022, inflation in the US reached its highest point in four decades but subsequently decreased by December 2023. This decline can be attributed to actions such as the US Federal Reserve raising interest rates, improvements in supply chain efficiency, and a reduction in gasoline prices. However, despite the drop in inflation, it remains significantly high compared to pre-pandemic levels. The overall inflation rate in the US as of February 2024 stood at 3.2%, up from 3.1% in January. While inflation has decreased from its peak of 9.1% in 2022, it remains significantly higher than the Federal Reserve’s target of 2%. This situation has led to financial difficulties for many Americans.

Comparing prices in December 2023 to those in January 2020 reveals a significant increase, with overall prices rising by 19%, food prices by 25%, energy prices by 26%, and shelter service prices by 21%. Meanwhile, wages for workers in private industries saw a rise of 4.3% by December 2023, compared to 5.1% in December 2022. Furthermore, US employers are planning to increase salaries by an average of 4.0% in 2024. This is slightly lower than the 4.4% increase in 2023 but still higher than the 3.1% increase seen in previous years. In 2023, pay raises outpaced inflation for the first time since 2020, highlighting a more stable job market compared to the period from 2008 to 2020.

In January 2024, the unemployment rate remained stable at 3.7% for the past three months, marking a decrease from January 2021, when it stood at 6.4%. However, despite these positive signs in the job market, the high inflation rate has continued to impact major companies like Tesla, Inc. (NASDAQ:TSLA), Apple Inc. (NASDAQ:AAPL), and Microsoft Corporation (NASDAQ:MSFT). In October 2023, Elon Musk, the CEO of Tesla, Inc. (NASDAQ:TSLA), voiced concerns about the effects of increased interest rates, stating that they offset the benefits of Tesla’s price reductions and lower people’s ability to purchase cars. Additionally, the higher interest rates and global economic uncertainties have impacted Tesla’s plans to expand its factory in Mexico.

Here’s what Fred Alger Management said about Tesla, Inc. (NASDAQ:TSLA) in its Q4 2023 investor letter:

“Tesla, Inc. (NASDAQ:TSLA) is an electric vehicle manufacturer with a significant technological lead in its large and rapidly growing addressable market. Tesla is a transportation company that is setting the pace for industry innovation, in our view. During the quarter, the company reported weaker-than-expected fiscal third quarter earnings, where gross margins were negatively impacted by factory downtime and ramping production volumes at new manufacturing plants. However, the company noted that they remain confident by the amount of data that Tesla’s established and growing fleet of vehicles has gathered, which may bode well for the company’s full self-driving capabilities.”

Top 30 Costly US Cities to Reside in by 2024

30 Most Expensive Cities to Live in the US in 2024

Photo by Karolina Grabowska from Pexels

Our Methodology

To shortlist the 30 most expensive cities to live in the US in 2024, we conducted a thorough cost-of-living analysis using credible sources such as Numbeo and International Living. The most expensive places in the US in 2024 have been ranked in ascending order of their latest cost of living index, sourced through Numbeo. The cost of living indices are benchmarked against New York City, which has a baseline index of 100%.

You can also check out the 20 Most Expensive States to Live in 2024 here.

By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.

30 Most Expensive Cities to Live in the US in 2024

30. Las Vegas, NV

Cost of Living Index: 70.1

Las Vegas, known as the ultimate party destination, is the most expensive city in Nevada. It has the highest housing and food costs in the state. Moreover, the influx of tourists each year creates a substantial demand for resources, contributing to a rise in prices.

29. Salt Lake City, UT

Cost of Living Index: 70.3

In Salt Lake City, the cost of living exceeds the state’s average by 8% and the national average by 9%. Housing expenses in Salt Lake City are 24% higher than the national average. One contributing factor to this higher cost could be the city’s growing population and expanding job market, leading to increased demand for housing.

28. Columbus, OH

Cost of Living Index: 71.6

In Columbus, housing and rent costs are 15% lower than the national average but remain 9% higher than the state average. Additionally, food expenses in Columbus are 5% higher than the state average.

27. Orlando, FL

Cost of Living Index: 71.9

In Orlando, the cost of living is slightly higher than the state average by 2% and the same as the national average. Housing in Orlando is 7% more costly than the national average. At the same time, food or groceries are 1% pricier than the national average, while clothing costs about 1% more as well.

26. Austin, TX

Cost of Living Index: 72.2

The cost of living in Austin is 31% higher than the state average and 9% higher than the national average. In addition, food and healthcare costs are also 5% and 4% higher than the national average, respectively.

25. Indianapolis, IN

Cost of Living Index: 73.8

In Indianapolis, housing and rent expenses are 2% higher than the state average, while food and services are 1% higher than the state average. Additionally, utilities in the city are 3% higher compared to the national average.

24. Dallas, TX

Cost of Living Index: 74.1

Residents of Dallas experience housing and rent costs that are 18% higher compared to the state of Texas, along with 8% higher utility expenses. Furthermore, food and healthcare expenses in Dallas are 6% and 16% higher than the state average, respectively.

23. Minneapolis, MN

Cost of Living Index: 75.5

Housing costs in the state of Minnesota are experiencing rapid growth, particularly in the city of Minneapolis, where housing and rent are 2% higher than the state average. Furthermore, healthcare expenses in Minneapolis are 1% higher than the national average.

22. Pittsburgh, PA

Cost of Living Index: 76.5

In Pittsburg, housing is 12% higher than the state average, while utilities are an alarming 16% higher than the state average. Other than this, transportation costs in Pennsylvania are generally higher, especially in Pittsburgh, where it exceeds the national average by 8%.

21. Tucson, AZ

Cost of Living Index: 76.7

Although the housing and rent costs are relatively low in Tucson, the utilities cost is 6% higher than the state average and 1% higher than the national average.

20. Nashville, TN

Cost of Living Index: 76.8

In Nashville, housing and rent expenses are 32% higher than the state average and 8% higher than the national average. Furthermore, utilities and food are 11% and 4% higher than the state average, respectively.

19. Charlotte, LC

Cost of Living Index: 77.4

In Charlotte, housing and healthcare costs are 4% higher than the state average, while food and services are 1% and 4% higher than the state average, respectively.

18. Philadelphia, PA

Cost of Living Index: 77.9

Housing and rent costs in Philadelphia are a concerning 17% higher than the state average. Meanwhile, utilities in the city are 10% higher than the national average.

17. Raleigh, NC

Cost of Living Index: 78.0

The overall living cost in Raleigh is 3% higher than the state average. Among these expenses, housing costs stand out as the highest, being 13% higher than the national average.

16. Miami, FL

Cost of Living Index: 78.2

In Miami, overall living costs are significantly higher than both the state and national averages. Housing costs are 51% higher than both the state and national averages. Furthermore, services’ expenses are 10% higher than the state average and 6% higher than the national average.

15. Chicago, IL

Cost of Living Index: 80.3

Housing costs in Chicago are 77% higher than the state average and 38% higher than the national average. Moreover, healthcare expenses exceed the state average by 15% and the national average by 8%.

14. Atlanta, GA

Cost of Living Index: 80.3

In Atlanta, housing costs are 29% higher than the state average, while healthcare expenses are 13% higher than the state average and 9% higher than the national average. Atlanta is at the fourteenth position on our list of the most expensive cities to live in the US in 2024.

13. Denver, CO

Cost of Living Index: 80.6

In Denver, housing and rent costs are 9% higher than the state average and a significant 31% higher than the national average. Moreover, services are 3% higher than the state average and 6% higher than the national average.

12. Tampa, FL

Cost of Living Index: 83.2

Tampa experiences high food and transportation costs, with food expenses being 1% higher than the state average and transportation costs being 1% higher than the national average.

11. Portland, OR

Cost of Living Index: 83.4

Portland faces high overall living costs, surpassing the state average by 10% and the national average by 20%. Within this, housing costs stand out significantly, being 23% higher than the state average and 50% higher than the national average.

10. Sacramento, CA

Cost of Living Index: 83.7

The overall living costs in Sacramento are 20% higher than the national average, making it one of the most expensive cities to live in the US in 2024.

9. Los Angeles, CA

Cost of Living Index: 84.4

The overall cost of living in Los Angeles is 8% higher than the state average and 50% higher than the national average. Housing costs contribute significantly to this disparity, being 20% higher than the state average and an alarming 137% higher than the national average. Additionally, transportation costs are also 25% higher than the national average.

8. San Diego, CA

Cost of Living Index: 84.7

The overall cost of living in San Diego is 3% higher than the state average. Additionally, healthcare expenses are also 5% higher than the national average.

7. Washington, DC

Cost of Living Index: 85.5

Washington is one of the most expensive places to live in, with overall living costs being 47% higher than the national average. Housing costs stand out significantly, being 140% higher than the national average. Additionally, services’ costs are 17% higher than the national average. The considerable cost of living, coupled with inflation rates, also influences major corporations such as Tesla, Inc. (NASDAQ:TSLA), Apple Inc. (NASDAQ:AAPL), and Microsoft Corporation (NASDAQ:MSFT) operating within the city.

6. Seattle, WA

Cost of Living Index: 87.2

The overall living cost in Seattle is 24% higher than the state average and 45% higher than the national average. Meanwhile, housing costs in the city are 65% higher than the state average and 112% higher than the national average.

Click to continue reading and see the 5 Most Expensive Cities to Live in the US in 2024. Suggested Articles:

Disclosure: None. 30 Most Expensive Cities to Live in the US in 2024 is published on Insider Monkey.

Source Reference

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