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
Data from the C2ER Cost of Living Index, 2025 Annual Average (published August 2025). City index values are approximate composites; state-level data from MERIC Q1 2025.
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.
Common Questions
What does a cost of living index of 100 mean?
100 represents the national average. A city with an index of 120 costs 20% more than the average; a city at 85 costs 15% less. Manhattan's index of 230+ means living there costs more than double the U.S. average, while Oklahoma City's index of 84 means everyday expenses run roughly 16% below it.
How do I calculate my equivalent salary in a new city?
Use this 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 to maintain the same purchasing power. The same formula works in reverse — moving to a cheaper city means you may be able to accept a lower nominal salary without a lifestyle cut.
What state has the lowest cost of living?
Oklahoma ranks as the most affordable state with a C2ER composite index of 85.5, followed by Arkansas (86.9), Kansas (87.0), and Mississippi (87.3). Texas (92.0) and Tennessee (93.0) combine near-average costs with no state income tax, which boosts effective take-home pay beyond what the index alone suggests.
What are the most expensive cities to live in the U.S.?
Manhattan leads by a wide margin at an index of 230+ — more than double the national average. Honolulu (190), San Francisco (180), and San Jose (170) follow. Six of the ten most expensive cities are in California, driven by limited housing supply and high-paying tech and finance industries. Housing alone runs 2–3× the national average in these metros.
Does cost of living include taxes?
The C2ER index does not include state or local income taxes — it measures consumer prices for goods and services. This matters significantly for relocation decisions: a $100,000 salary in Austin, TX (no state income tax) yields meaningfully more take-home pay than $100,000 in Portland, OR (up to 9.9% state income tax), even before adjusting for the cost of living difference. Always layer tax impact on top of any index comparison.
How often is the C2ER Cost of Living Index updated?
C2ER publishes the Cost of Living Index quarterly (Q1–Q4), with an annual average released each August. Prices are collected locally by independent researchers following standardized C2ER guidelines across 60+ goods and services. The index has been published continuously since 1968 and is recognized by the U.S. Census Bureau and Bureau of Labor Statistics as a primary source for city-to-city cost comparisons.
Most Expensive Cities to Live in the U.S. (2025–2026)
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 (2025–2026)
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.
How Far Does $100,000 Go in Each City?
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.
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