The top 10 U.S. cities with the highest monthly expenses for residents.
Doxo released The Bill Pay Economy™ 2024, which found that Americans spend nearly $3.35 trillion annually on the top ten household bills, according to a report shared exclusively with CNBC Make It.
Using data from bill payments on the Doxo platform and rental and mortgage numbers from the U.S. Census, they ranked the 50 largest cities in the country in terms of affordability.
The key household bills categories examined for this year's ranking were:
- Mortgage
- Rent
- Auto loan
- The utilities include electric, gas, water & sewer, and waste & recycling.
- Auto insurance
- Health insurance
- Cable, internet
- Mobile phone
- Alarm and security
- Life insurance
It's not surprising that many West Coast cities, with four of the top 10 being in California, have residents who pay the most for expenses like rent and insurance.
"According to Powell, the largest sign of an expensive location is housing, as individuals typically allocate the greatest amount of funds towards their living expenses, whether through a mortgage or rent."
The average monthly bills are most expensive in San Jose among large cities in the U.S.
The doxo report ranked San Jose as the city where residents spend the most on bills, with an average monthly expense of $3,695, which is 32% of their household income.
Powell remarks that the average mortgage in San Jose is 83% above the national average, which is a significant difference.
The top three categories in which residents spend the most, as per the report, are housing, utilities, and auto loans.
San Jose, a part of the Bay Area, is one of the most expensive cities in America, with a cost of living that is 78% higher than the national average, as per PayScale.
A median-priced home in the area requires a household to earn a salary of $463,887, according to an August analysis by mortgage analytics firm HSH.
According to Zillow, the average home value in San Jose, CA increased by 8.9% to $1,423,994 over the past year.
10 large U.S. cities where residents spend the most on monthly bills
- San Jose, Calif.
- New York, N.Y.
- Boston, Mass.
- San Francisco, Calif.
- San Diego, Calif.
- Los Angeles, Calif.
- Seattle, Wash.
- Washington D.C.
- Miami, Fla.
- Portland, Ore.
In New York, residents spend an average of $3,639 a month on their bills, which is 38% of their household income.
Powell states that New Yorkers spend $626 a month on electricity and gas, which is $264 more than the national average of $362.
According to PayScale, the cost of living in New York is 130% higher than the national average, making it a pretty expensive place.
According to a report from mortgage analytics firm HSH, the average household needs to earn $186,123 to afford a house in the area, while the median home price is $659,200.
According to Zumper, the median rent for all bedroom counts and property types in Manhattan is at most $4,308.
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