Cost of Living by City
Cost of living index comparison across major U.S. cities, most expensive and affordable metros, salary equivalents, and how to adjust your budget when relocating
Key Numbers
Manhattan
130% Above Avg
Most Affordable
TX Cities
$100K in SF =
$43K Purchasing
Biggest Driver
Housing
Cost of living varies dramatically across U.S. cities — Manhattan costs more than double the national average, while parts of Texas and Oklahoma run 15–20% below it. The C2ER Cost of Living Index (published quarterly by the Council for Community and Economic Research) measures prices for 60+ consumer goods and services across six categories, using 100 as the national average.
Index Categories & Weights
| Category | Weight | Includes | Key Variation |
|---|---|---|---|
| Housing | 30–35% | Rent, home prices, property tax | Biggest driver of city-to-city differences |
| Groceries | 12–15% | Food, beverages, household products | 10–20% spread between cities |
| Transportation | 10–12% | Gas, car insurance, transit, parking | High in CA; low in South/Midwest |
| Healthcare | 8–10% | Premiums, out-of-pocket, Rx | Modest variation vs. housing |
| Utilities | 5–8% | Electric, gas, water, internet | Hawaii highest; Midwest lowest |
| Miscellaneous | 20–25% | Clothing, entertainment, childcare | Moderate variation |
Reading the Index
| Index Range | Meaning | Example Cities |
|---|---|---|
| 150+ | 50%+ above average — very expensive | Manhattan, Honolulu |
| 120–149 | 20–49% above average — expensive | San Francisco, Boston, Seattle |
| 100–119 | Average to moderately expensive | Denver, Portland, Austin |
| 85–99 | Below average — affordable | Dallas, Phoenix, Atlanta |
| <85 | 15%+ below average — very affordable | Oklahoma City, Memphis, Wichita |
Regional pattern: The most expensive areas cluster on the California coast, NYC metro, Hawaii, and Boston. The most affordable areas are in Texas (non-Austin), Oklahoma, Mississippi, Arkansas, and the rural Midwest.
Most Expensive Cities
The priciest U.S. metros are driven by limited housing supply, high-paying industries (tech, finance), and geographic constraints. Housing alone can run 2–3× the national average in these cities.
| # | City | Index | vs. Avg | Median 1BR Rent |
|---|---|---|---|---|
| 1 | Manhattan, NY | 230+ | +130% | $4,100+ |
| 2 | Honolulu, HI | 190 | +90% | $2,400 |
| 3 | San Francisco, CA | 180 | +80% | $3,400 |
| 4 | San Jose, CA | 170 | +70% | $2,900 |
| 5 | Orange County, CA | 165 | +65% | $2,700 |
| 6 | Los Angeles, CA | 160 | +60% | $2,500 |
| 7 | San Diego, CA | 155 | +55% | $2,400 |
| 8 | Boston, MA | 150 | +50% | $3,000 |
| 9 | Seattle, WA | 145 | +45% | $2,200 |
| 10 | Washington, D.C. | 140 | +40% | $2,300 |
Approximate composite index values. Sources: C2ER Cost of Living Index (2025 annual data), Zillow, Numbeo.
California dominates: Six of the ten most expensive cities are in California, which has a statewide index of roughly 143. Housing runs 2× the national average, and the state leads the nation in outbound migration.
Most Affordable Cities & States
The most affordable metros are concentrated in Texas, Oklahoma, and the South/Midwest — areas with lower housing costs and, in some cases, no state income tax. Trade-off: wages in these areas tend to be 10–20% lower than coastal cities.
10 Most Affordable U.S. Metros
| # | City | Index | vs. Avg | Median Home |
|---|---|---|---|---|
| 1 | Harlingen, TX | 78 | −22% | $180,000 |
| 2 | Brownsville, TX | 78 | −22% | $185,000 |
| 3 | McAllen, TX | 79 | −21% | $195,000 |
| 4 | Enid, OK | 82 | −18% | $143,000 |
| 5 | Oklahoma City, OK | 84 | −16% | $225,000 |
| 6 | Wichita Falls, TX | 84 | −16% | $188,000 |
| 7 | Tulsa, OK | 85 | −15% | $210,000 |
| 8 | Memphis, TN | 86 | −14% | $195,000 |
| 9 | Little Rock, AR | 86 | −14% | $205,000 |
| 10 | Wichita, KS | 87 | −13% | $200,000 |
Sources: C2ER Cost of Living Index (2025), Redfin, U.S. News.
Most Affordable States
| State | COL Index | State Income Tax | Key Industries |
|---|---|---|---|
| Oklahoma | 85.5 | 0.25–4.75% | Energy, aerospace, healthcare |
| Mississippi | 87.3 | 0–5% | Manufacturing, agriculture |
| Arkansas | 86.9 | 0–4.4% | Retail (Walmart HQ), agriculture |
| Kansas | 87.0 | 3.1–5.7% | Agriculture, aerospace, healthcare |
| Texas | 92.0 | None | Energy, tech, healthcare |
| Tennessee | 93.0 | None | Healthcare, music, automotive |
State-level COLI from MERIC (Missouri Economic Research and Information Center), Q1 2025.
Benefits of Low-COL Areas
Housing costs 20–40% lower, no state income tax in TX/TN/FL, lower childcare expenses, shorter commutes, and more space for your money.
Trade-offs to Consider
Salaries often 10–20% lower, fewer high-paying industries, limited public transit (car typically required), and fewer urban amenities.
Salary & Purchasing Power
A $100,000 salary buys very different lifestyles depending on location. The table below shows purchasing power and the salary needed to match $100,000 at the national average.
| City | COL Index | $100k Feels Like | Need to Match $100k |
|---|---|---|---|
| Oklahoma City, OK | 84 | $119,000 | $84,000 |
| Memphis, TN | 86 | $116,000 | $86,000 |
| Dallas, TX | 95 | $105,000 | $95,000 |
| Phoenix, AZ | 97 | $103,000 | $97,000 |
| National Average | 100 | $100,000 | $100,000 |
| Denver, CO | 110 | $91,000 | $110,000 |
| Seattle, WA | 145 | $69,000 | $145,000 |
| Boston, MA | 150 | $67,000 | $150,000 |
| San Francisco, CA | 180 | $56,000 | $180,000 |
| Manhattan, NY | 230 | $43,000 | $230,000 |
Purchasing power calculated as $100,000 × (100 ÷ City Index). "Need to Match" = salary required to equal $100k at the national average.
Salary conversion formula: Equivalent Salary = Current Salary × (New City Index ÷ Current City Index). Example: $80,000 in Dallas (index 95) moving to Seattle (index 145) = $80,000 × (145 ÷ 95) = $122,105 needed for equivalent purchasing power.
Don't forget taxes: States with no income tax (TX, FL, WA, TN, NV, SD, WY) effectively boost take-home pay. A $100,000 salary in Austin, TX keeps more net income than $100,000 in Portland, OR — even before adjusting for cost of living.
Sources
- 1.C2ER — Cost of Living Index (COLI) Methodology & Data
- 2.MERIC (Missouri Economic Research and Information Center) — State Cost of Living Data Series
- 3.Kiplinger — The 15 Most Expensive Cities to Live in the U.S. (2025)
- 4.U.S. Bureau of Economic Analysis — Regional Price Parities
- 5.Zillow — Rental Data & Home Values
- 6.Bureau of Labor Statistics — Consumer Expenditure Surveys
This content is for educational and informational purposes only and does not constitute financial, tax, or legal advice. Consult a qualified professional for guidance tailored to your situation.