Before you start your life in a new city, you might want to consider finding out about the most expensive cities in the US. According to data from the Harvard Joint Center for Housing Studies, housing costs in the US have been growing at an unprecedented rate. The average asking rents have been increasing up to 11% since September 2021. The median sales price of US homes climbed even faster, going from $322,600 to $428,700. This number is 32.9% higher between 2020 and the first quarter of 2022. So which are the most expensive places to live in the US? Here is some information you might need.
1) San Jose
San Jose, located in the greater Bay Area, California is first on the list of the most expensive cities in the US. The latest US Census in 2020 recorded San Jose’s population of 1,013,240. As of now, the population growth of the city is at 0.66%. The estimated population in 2022 is 1,026,700. San Jose is known to be the largest city in Northern California. Household income in San Jose is around $142,635, with the median rental cost around $2,232. San Jose also has the second-highest median real estate taxes with $7,211 in total.
San Jose’s real estate market is competitive. The median property price is stable at around $1.2M. It is only 0.08% higher than in 2021. A property spends 21 days on the market before being deemed sold out. When you plan to move out to San Jose, you might want to make sure that you already hold down a job. San Jose holds the 2nd most expensive city for house renters in the U.S. The living cost in San Jose is also 80% higher than the national average. Counting housing finances.
2) San Francisco
San Francisco is known as the most famous city in California. It is vast. It is also the fourth city with the biggest population in California. With the data from US Census 2020 counted approximately 873,965 population. The population growth in this city is 0.78%. The average household income in San Francisco is around $160,396. The neighborhood also affects the household income and also real estate prices. The most expensive place to live in San Francisco is the Bay Area. The average rent cost in San Francisco is $2,010 per month.
With the big household income, the real estate market becomes a competitive place. The longest a property spends on the market is only 18 days. In July 2022, San Francisco home prices were down by 3.2% compared to 2021. Even then, it still reaches $1.5M. Making it the most expensive house average price on the list. Owning a property in San Francisco also means that you have to be prepared for natural phenomena like earthquakes. San Francisco is mostly built on hills and sat on 6 different fault lines. So taking earthquake insurance is encouraged before you buy a property.
Seattle, Washington has a population of 737,015 based on the 2020 US Census. The population growth in this city is 1.71%. Seattle is a famous metropolitan area in Washington state. It is also one of the fastest-growing areas in the county. The household income in Seattle is $128,184 and the rental cost average is $1,702 per month. The living cost in Seattle however is 24% higher than the national average. Seattle is the home of countless big companies. Making the living cost preferably high for lifestyle. It scores 87.5 out of 100 on the living cost index. Putting Seattle in the third ranking of the most expensive cities to live in the US.
The city’s most expensive and luxurious neighborhoods are Pike Market and Belltown. But places like Ballard, Broadway/Capitol Hill have a relatively average rent price. The average home purchase price according to Redfin is $860,000. This number is 7.5% higher than in July 2021. With time spent in the market no longer than a week. Making the Seattle real estate market the most competitive one. Until July 2022, there are 833 properties sold. Including townhouses, single-family homes, and condos.
4) San Diego
San Diego is another city that falls under California state jurisdiction. With a population of 1,386,932 as recorded by the 2020 US Census. The population growth in this city is around 0.57%. San Diego is exposed to immigration since it’s located along the Mexico border. San Diego is the second largest city in the state, with a lot of tourist attractions. Including the annual famous Comic Con. The average household income in San Diego as of 2022 is around $108,864. The average rental cost in San Diego is now $1,770 per month.
As for the San Diego real estate market, the property prices were up 10.7% compared to 2021. With the median sale price of $875,000. There are different choices as to which neighborhood is the best to live in, the first choice is Oceanside with the affordable coastal living. There are also Carlsbad, La Jolla, and Downtown San Diego with a competitive real estate market. Currently, San Diego is a real estate seller’s market. If you are looking for the most affordable property, you can try La Mesa, Santee, and Ramona which are an hour’s drive from Downtown, but with promising property prices.
Boston, Massachusetts is the oldest city in the U.S. It is also the setting for many historical events. As of 2020, the population of Boston is recorded around 675,647. With a population growth of 0.85%. The average household income in Boston is $107,608 and the rental cost of $1,685 per month. Boston is also the 10th largest metropolitan city in the United States. The average living cost in Boston is around $2,899 per month. Making it to the list of the most expensive cities to live in.
The housing market, however, is at an alarming rate. It reached 300% higher than the national average. Depending on the area. The median property sale price in the Boston real estate market is roughly $800,000. This price has already spiked by 9.7% since 2021. For renters, Boston property prices are number 3 among the most expensive properties in The U.S., following San Francisco and New York City. South Boston is known to be the area with the highest average rent.
6) Washington D.C.
As the nation’s capital, Washington D.C. has its charm to attract people. With countless historic points and cultural attractions, it is indeed a famous part of the US. According to the 2020 US Census, there are 689,545 people residing in Washington D.C. The population growth of this city is 1.26%. But don’t be surprised because the average living cost in this city reaches $5,400 for a whole family per month. Clearly, making Washington D.C. the most expensive cities to live in the USA. Rental costs are not included. The average household income in Washington D.C is $127,890 with an average rental cost of $1,607.
However, the D.C. housing market is showing signs of a cooldown. The median price has decreased by 7% since April 2022. Houses spent an average of 23 days in the market before being sold. Washington D.C. is also a good place to rent out an apartment. The average price of a studio room and one bedroom is no higher than $1,500. Meanwhile, the 2 and 3 bedrooms apartment both needed $100 and $200 more to be rented.
7) Los Angeles
The iconic city of Los Angeles is a place of the most diverse culture in the US. As of 2020, it has a population of 3,898,747. This number has been decreasing since then, with a population growth of 0.27%. Los Angeles is known to be another metropolitan area with high median home values and low median housing costs. According to the area. A one-bedroom apartment in downtown Los Angeles cost $500 more than the ones in the suburban area. Apart from housing expenses, the living cost in Los Angeles for 1 person could reach $1,000 per month. Making it the most expensive US cities.
The median house price in Los Angeles has been climbing up until September 2021. Then it has been an unstable roller coaster. Los Angeles is also considered a seller’s market. This means, there are more buyers than available property. The median price of sold homes was $845,000. The average time a house spent in the market span between 30-50 days. Houses in Santa Monica are considered the most expensive, whereas the Temecula area is the most affordable. But if you are looking for rent, then West Hollywood is the most famous one with the fastest growing rent.
8) New York
It is no surprise that living in New York is costly. Not only because of the lifestyle but also for the housing. New York is the most famous metropolitan area in the US. The posh lifestyle makes New York one of the most expensive cities in the US. It is also home to several big businesses and shopping malls. New York has a population of 8,804,190 as recorded by the 2020 US Census. The average household income of the people is around $102,946. But the living cost is also quite grand. The average rental prices vary according to the area. Say you wanted an apartment room with a New York view, then you could spend more than $1,000 per month.
When you decide to move and earn your living in New York City, make sure you already have enough savings that will help you pay the bills. Start with a property that is not in the middle of the city, and find a nice suburban neighborhood where you can own a house without choking yourself. The average house price in New York as of August 2022 is $820,000.
Known to be a home for the liberal counterculture, Portland, Oregon is populated mostly by people between the age of 20-40. It is also known to be the City of Roses. Portland has a population of 652,503 according to the 2020 US Census. As of right now, the population growth is at a 1.04% rate. The average household income in Portland is around $95,998 with a rental cost of $1,425 per month. The living cost in Portland is over 29% higher than the national average.
In March 2021, the average house price in Portland Oregon is $501,224. However, it is still below the typical home value in other Pacific Northwest cities like Seattle. Areas with the most expensive rental costs in Portland are Pearl District, Nob Hill-Northwest district, and Old Town Portland-Chinatown. With an average rental cost of up to $1,700 per month. The living cost in Portland, Oregon also falls under 2% of the most expensive cities in the world.
The last city that’s included in the most expensive cities in the US is Denver, Colorado. It is known for its famous scenery, the Rocky Mountain region. Not to mention a bunch of other outdoor recreation. Denver is also the capital of Colorado and the biggest city in the state. As for the 2020 US Census, Denver, Colorado has a population of 738,594. It is growing at the rate of 1.59%. The average household income in Denver is around $99,151 with a rental cost of $1,397 per month. The living cost in Denver, however, could range between 12% to 29% above the national average. Depends on the lifestyle you’re following.
However, the high salary in Denver helps its citizens to maintain good financial records. With a monthly salary after taxes of around $4,396, it’s enough to suffice the living cost and rental costs. If you are interested in buying a house in Denver, Colorado, the average house price is $462,2000. With that, you might need to consult a real estate agent to buy a house within your budget.
That concludes the most expensive cities in the US list. If you are thinking of moving, then you might want to consider all the factors, such as household income, how much you can make a month, and whether or not you can survive on the money in a month. If you are moving in with your family, you also need to make a careful decision.