The 10 U.S. cities with the highest cost of living are more expensive than the national average by a factor of two or more.

Manhattan is the most expensive place to live in the U.S., with the cost of living in the No. 2 place significantly lower.

Manhattan is significantly more expensive than the national average, with Honolulu and San Jose, California being the second and third most expensive cities, respectively. However, compared to Manhattan, these cities are relatively affordable, with Honolulu being 24% less expensive and San Jose being 30% less expensive.

According to the Council for Community and Economic Research's Cost of Living Index, which measures regional price differences for everyday goods and services in 271 urban areas in the U.S., the cost of living varies significantly across different regions.

The cost of living is determined by a composite index score, which takes into account six weighted categories, including housing, utilities, groceries, transportation, health care, and miscellaneous goods or services. A score of 100 represents the national average, and any score higher than 100 indicates an above-average cost of living.

The 10 most expensive urban areas, according to composite index scores, are being examined.

1. New York (Manhattan): 231
2. Honolulu: 186.2
3. San Jose, California: 177.1
4. San Francisco: 169.6
5. New York (Brooklyn): 161.5
6. Orange County, California: 154.9
7. Los Angeles (Long Beach): 150.6
8. New York (Queens): 146.9
9. Washington, D.C.: 144.6
10. Boston: 144.3

Due to the high concentration of jobs and increased demand for housing, large U.S. cities tend to have some of the highest housing costs in the country.

In cities like Honolulu and Manhattan, limited land availability restricts the amount of housing that can be constructed, resulting in increased home prices due to a shortage of supply.

Manhattan's high cost is due to the abundance of wealth in the city, as it houses over 350,000 millionaires, the highest number in the country, many of whom reside in Manhattan.

Manhattan's most expensive U.S. neighborhoods, such as the West Village, have high home prices due to the concentration of wealth, with a median cost of $2,400 per square foot.

The least expensive city in the ranking is Decatur, Illinois, with a score of 78.8. It is 22.2% cheaper to reside there compared to the national average.

The Cost of Living Index was calculated using data collected from January 1, 2024, to March 31, 2024. The weighting of each category is based on typical household spending patterns, as determined by government survey data.

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