The United States is home to some of the wealthiest cities in the world, where the cost of living is astronomical compared to the national average. These cities attract high-income professionals who can afford the sky-high prices for housing, goods, and services.
While these cities have pockets of extreme affluence, they also contain areas of deep poverty. Here is a list of eleven cities where only the rich can afford to live.
NEW YORK CITY
New York, or NYC, is the most populous city in the U.S. It is nicknamed the “city that never sleeps” and “The Big Apple.”
NYC is not a city everyone can afford; it’s the most expensive city in the world, making it impossible for anyone other than the rich to live comfortably here.
The cost of living is 128% higher than the national average, and the selling price of homes in New York City is $825,000, which is 385% higher than the rest of the U.S. Utility prices are 3% higher than the national average, while care is 8% more expensive.
HONOLULU, HAWAII
Honolulu means “sheltered bay” in Hawaiian. It is the most populous city in Hawaii, and tourists from around the U.S. and worldwide are drawn to it.
The residents pay 42% more for utilities than the national average and 8% more for healthcare. The cost of living in Honolulu is 84% higher than the rest of the U.S.
Tourism and luxury hotels inflate the housing prices in Hawaii; according to Kiplinger, an average home costs $1.7 million in Honolulu, making it next to impossible for middle-class folks to buy a house in the city.
ORANGE COUNTY, CALIFORNIA
Orange County is a famous tourist location known for Disneyland Park, Downtown Disney District, Disney California Adventure Park, Angel Stadium, and Huntington Beach Pier. Many T.V. shows were filmed here in the early 2000s. Orange County is known for its wealth, with prices skyrocketing.
The median selling price of a home in Orange County is $1,184,500, which is 157% higher than the national average.
The cost of living is 51% higher than the national average, with utilities costing 8% more.
MANHATTAN, NEW YORK
Manhattan, the heart of New York, is one of the five boroughs of this iconic city. It is home to the Statue of Liberty. Manhattan is both the smallest and the most densely populated borough.
The dense population inflates the prices of everything from housing to utilities to healthcare. The cost of living in Manhattan is 126% more than the national average, while healthcare costs 21% more.
The median selling price was $1.2 million, 404% higher than the national average, as of March 2024.
SEATTLE, WASHINGTON
Seattle, famous for its iconic landmark—the Seattle Space Needle, is also home to many world-famous Fortune 500 companies, including Starbucks, Microsoft, and Boeing.
The cost of living in Emerald City is 45% higher than the national average, and housing costs are incredibly high. The median selling price is a whopping $847500, which is 111% higher than the national average.
While there is no personal income tax, Seattle is not exactly tax-friendly because residents pay a high sales tax of 10.35%. Everything is costly here, including utilities, which cost 6% more, and healthcare, which is 30% more expensive than the rest of the U.S., making it hard for anyone other than the rich to afford this city and live a comfortable life.
LOS ANGELES, CALIFORNIA
Los Angeles, often called L.A., is the second-most populous and expensive city in the United States. It is also the fourth-most expensive city in the world, making it clear that anyone other than the rich can afford to live in L.A.
Los Angeles has low wages and a high unemployment rate of 5%. Despite being employed, people with lower wages are unable to afford homes in the city because housing is 140% more expensive than the national average, with the median selling price at a whopping $900000.
Utilities cost 11% more, and healthcare costs 12% more than the rest of the U.S.
BOSTON, MASSACHUSETTS
Boston is nicknamed “Beantown” for its historical importance in the coffee trade. The city is home to prestigious universities like Harvard, MIT, and Tufts.
Yet the city’s high costs have caused an affordability crisis for its residents. A study shows that for a single adult to live comfortably in Boston, they must make $124966, much higher than the nationwide average income of $59428.
Housing isn’t cheap either, with the median selling price at $775000, which is 124% higher than the national average. Utilities cost 25% more, and healthcare costs 19% more than in the rest of the U.S.
SAN JOSE, CALIFORNIA
San Jose is the heart of Silicon Valley. Major tech companies like Apple, Paypal, and Google call the city home, making it incredibly expensive for the middle class.
Housing in San Jose costs 226% more than the national average, with the median selling price of a home at $1500000. Utilities cost 24% more, and healthcare costs 18% more than in the rest of the U.S.
It should be noted that San Jose is ranked the No.1 “Most expensive large U.S. city based on monthly costs.” Residents pay 71.2% more than the national average for monthly expenses, making it nearly impossible for normal wage earners to afford to live in the city.
MIAMI, FLORIDA
Miami, nicknamed the “magic city,” saw a rapid growth in its millionaire population, up to 20% in 2022. Its warm weather, low taxes, and luxury real estate appeal to the wealthy, but the city is not affordable to the middle class.
The median selling price of a house in Miami is $62500, 47% more than the national average. The cost of living is 21% more than the national average, with utilities costing 6% more and groceries costing 20% more than in the rest of the U.S.
CHICAGO, ILLINOIS
Chicago, also known as the “Windy City,” is one of the largest cities in the U.S. It is famous for iconic skyscrapers like the John Hancock Center.
The cost of living in Chicago is 14% more than the national average, the cost of basic necessities is 7% higher, and healthcare costs 13% more.
Housing in Chicago isn’t cheap either; the median selling price of a house stands at $364250, which is 38% more expensive than the national average.
SAN FRANCISCO, CALIFORNIA
San Francisco is the fourth largest city in the U.S., but comfortable living for middle-class folk has become impossible owing to the city’s astronomical housing costs and income inequality.
Housing is expensive in San Francisco, with homes selling for a median price of $1415000, making it difficult for people to own homes in the city.
The cost of living is 79% higher than the national average, with utilities 32% costlier than elsewhere in the U.S. Healthcare costs 31% more, which is higher than even among the expensive cities in the U.S.