Story at a glance
- A new report from ConsumerAffairs analyzed 2021 data from the U.S. Census Bureau along two metrics — median monthly housing costs and median owner-occupied unit values — to determine the most expensive cities in the country.
- California cities held four out of the top five spots.
- San Jose was the most expensive city.
Housing costs are the most expensive in San Jose, Calif., where average monthly housing expenses take up close to a quarter of a household’s income, according to a new report.
Both home values and asking rents soared throughout the pandemic, and Americans’ monthly budgets have only grown tighter as inflation rises.
Posted rent prices increased by 25 percent from the beginning of the pandemic, and some experts predicted in September that rents will outpace inflation, stocks and home values over the next 12 months.
The new report from ConsumerAffairs analyzed 2021 data from the U.S. Census Bureau along two metrics — median monthly housing costs and median owner-occupied unit values — to determine the most expensive cities in the country.
California cities held four out of the top five spots.
San Jose was the most expensive city in the U.S., according to ConsumerAffairs’ rankings. Here, residents’ median monthly housing costs — including a rent or mortgage payment, various insurance and utilities — was $2,463. The median household income in the city is $126,377 per year.
San Francisco, often regarded as one of the nation’s most expensive cities, came in second. Falling slightly behind San Jose, residents in San Francisco spend about 23 percent of their monthly incomes on housing costs. Here, monthly housing costs were $2,337 and median annual incomes were $121,826.
San Diego, where housing expenses take up a greater percentage of monthly incomes than San Jose or San Francisco, finished in third. Housing costs account for more than 26 percent of San Diego residents’ incomes. Here, monthly median housing costs were $2,044 while median incomes were $93,042 per year.
Seattle and Los Angeles, with monthly housing costs at $1,984 and $1,845 respectively, rounded out the top five.
Still, some cities with higher costs of living fell lower on the list when accounting for median home values.
Although median monthly housing expenses in Boston are higher than those in Los Angeles, the $150,000 difference in median home values make L.A. slightly more expensive overall.
The least expensive city, according to the report, is Detroit, where residents’ median monthly housing costs were $755.
Here are the 10 most expensive cities in the U.S. and their median monthly housing expenses, according to ConsumerAffairs:
1. San Jose: $2,463
2. San Francisco: $2,337
3. San Diego: $2,044
4. Seattle: $1,984
5. Los Angeles: $1,845
6. Boston: $1,883
7. Washington, D.C.: $1,817
8. New York: $1,632
9. Denver: $1,626
10. Portland: $1,535
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