Choosing the United States as a destination, either to invest or relocate with the family, is a decision that requires considering multiple factors. Among them, the cost of living in major cities plays a key role in determining which destination is the most suitable. This article offers a detailed analysis of the 10 most expensive cities in the country, exploring fundamentals such as the real estate market, federal and state taxes, educational quality, and transportation options. If you’re evaluating a life change or investment, this guide will help you make informed, strategic decisions to achieve your goals in a new country.
10. Atlanta, Georgia
Atlanta, with a population of approximately 500,000, stands out for being a city in constant economic growth and for its relevance as a transportation hub in the southeastern United States.
Although the cost of living in Atlanta is only 6% higher than the national average, it is still a relatively affordable option compared to other large cities.
The average price of a home is around $350,000, while the monthly rent for a one-bedroom apartment is close to $1,500, which allows some accessibility for those looking to settle in this city. On the other hand, Georgia applies a state income tax of 5.75% and a sales tax of 4%, although counties may add additional rates, which slightly increases the tax burden. In addition, Atlanta is home to high-end educational institutions, such as the Georgia Institute of Technology, which reinforce its appeal to students and professionals.
In terms of transportation, MARTA, the city’s public transportation system, offers bus and train options, although much of the residents still rely on the car to get around.
9. Seattle, Washington
Next on the list of most expensive cities in the United States is Seattle, with a population of around 750,000 people, and is a technological and cultural epicenter in the Pacific Northwest.
With a cost of living 52.2% higher than the national average, the city reflects the prosperity generated by its connection with leading technology companies, such as Amazon and Microsoft. However, this prosperity comes with high prices in the real estate market: the average price of a home reaches $795,000, and rents for one-bedroom apartments exceed $2,000 per month.
Despite not having a state income tax, Washington compensates with a 6.5% sales tax, which can rise locally, affecting the cost of goods and services. On the other hand, the University of Washington and other renowned institutions guarantee a quality educational offer.
Transportation-wise, although the city has an expanding bus and light rail network, many residents still rely on the car, especially in less connected areas. Seattle is, without a doubt, a city that combines development opportunities with challenges in terms of cost of living.
8. Washington, D.C.
The capital of the United States, with a population of approximately 700,000, is one of the most expensive cities in the country, where politics, history, and culture converge.
The cost of living in Washington, D.C., is 53.4% higher than the national average, reflecting its importance as an administrative and economic center. The housing market, with median home prices at $708,000 and rents hovering around $2,500 per month for one-bedroom apartments, is competitive and challenging for new residents.
In terms of taxation, the District of Columbia applies income rates ranging from 4% to 8.95%, along with a sales tax of 6%, which puts it in the upper-middle range of the national tax scale.
Prestigious universities, such as Georgetown and George Washington, reinforce the city’s educational appeal. In addition, the public transport system is robust, with a well-developed metro and bus network, although heavy traffic and high parking costs can pose a challenge. Washington, D.C., offers a balance between career opportunities and financial challenges.
7. Chicago, Illinois
Chicago, known as the “Windy City,” is home to about 2.7 million residents and is a major cultural and economic center in the Midwest.
The cost of living in Chicago is 23.5% higher than the national average, making it a more affordable option than other big cities, though it still presents challenges for new residents.
The housing market has median home prices of $350,000, and rents for one-bedroom apartments average $1,800, which is a competitive option compared to coastal cities.
The state of Illinois applies a state income tax of 4.95% and sales rates ranging from 6.25% to 11%, depending on the location in the city.
The educational offer includes renowned institutions such as the University of Chicago and Northwestern, which are recognized globally.
In terms of transportation, Chicago has one of the most extensive public systems in the country, operated by the CTA, making it easy to move within and around the city.
6. Boston, Massachusetts
Boston, with a population of about 700,000 people, is an epicenter of history, education, and technology in the Northeast.
The cost of living in Boston is 48% higher than the national average, standing out mainly for its real estate market, where the median price of a home reaches $750,000 and monthly rents are around $2,500 for one-bedroom apartments.
Massachusetts applies a 5% state income tax and a 6.25% sales tax, which are moderate compared to other high-cost areas.
Boston is known for being home to prestigious educational institutions such as Harvard and MIT, making it an attractive destination for highly skilled students and professionals.
In terms of transportation, the city has a robust public system, known as the “T,” which includes trains, buses, and ferries, efficiently connecting urban and suburban neighborhoods. Boston combines tradition and modernity, offering an ideal environment for those seeking professional and educational stability.
5. Miami, Florida
Miami, known for its tropical climate and rich cultural diversity, is another of the most expensive cities in the country.
With a cost of living 22% higher than the national average, the city is more accessible compared to other large cities on this list, but it still presents economic challenges for its residents.
The real estate market shows an average home price of $500,000, while the monthly rent for a one-bedroom apartment is around $2,000, figures that have been increasing due to the high demand for real estate. On the other hand, Florida has no state income tax, which represents significant tax relief for many residents. However, the state applies a 6% sales tax, which can be increased locally, affecting the cost of products and services.
Miami is also recognized for its educational offerings, with the University of Miami standing out as a renowned institution. As for transportation, although the city has buses and trains that cover key areas, reliance on the car remains high, especially in the suburbs.
4. San Francisco, California
San Francisco, with a population of approximately 870,000 people, is a global epicenter of technology and culture. However, this prestige is accompanied by a cost of living 82.8% higher than the national average, which makes it one of the most expensive cities in the country. The median home price in San Francisco is over $1,300,000, and the monthly rent for a one-bedroom apartment is around $3,000, which poses a considerable challenge even for high-paying professionals.
On the tax front, California has one of the highest income taxes in the country, with rates reaching 13.3%, in addition to a sales tax of 7.25%, which can be increased locally. Despite this, the city has a high-quality educational network, including institutions such as the University of California, San Francisco.
In terms of transportation, the BART system and an extensive network of buses and streetcars facilitate mobility, although traffic and high parking costs are frequent problems for residents. San Francisco combines innovation and economic challenges, making it an ideal choice for those looking for opportunities in technology, but require strong financial planning.
3. Honolulu, Hawaii
Honolulu, with a population of around 350,000 people, is a tropical paradise that attracts tourists and new residents alike. However, the cost of living in Honolulu is 79% higher than the national average, mainly due to the high prices of imported goods and local services.
The median price of a home in the city is around $1 million, while monthly rents for one-bedroom apartments range from $2,500 to $3,000.
Hawaii applies an income tax ranging from 1.4% to 11%, depending on income, along with a sales tax of 4%. However, the combination of a highly competitive real estate market and a high cost of basic goods complicates the financial picture for many residents. Honolulu also has a strong educational offering, with the University of Hawaii standing out.
In terms of transportation, the infrastructure is dominated by buses, although many residents opt for private vehicles due to limited public transportation coverage. Honolulu is a desired destination for its quality of life and natural beauty, although its high cost makes it a challenge for those looking to settle there.
2. Los Angeles, California
With nearly 4 million residents, Los Angeles is known as the entertainment capital of the world and one of the largest centers of international trade. However, this prominence is reflected in a life span76% higher than the national average.
The average price of a home in Los Angeles is over $973,000, while the rent for a one-bedroom apartment is around $2,800, making it one of the most expensive cities in the country.
In fiscal terms, California imposes income tax rates of up to 13.3%, which, combined with the high cost of living, poses an economic challenge for many residents. Despite this, Los Angeles is a magnet for professionals, thanks to its vibrant media industry and educational offerings, which include institutions such as UCLA and the University of Southern California (USC).
In terms of transportation, although the city has an expanding light rail and bus network, heavy traffic and long travel times remain a major obstacle. Los Angeles offers endless opportunities, but it demands strong financial preparation and great adaptability.
1. New York, New York
New York, the city that never sleeps, leads this list with a cost of living 87% higher than the national average.
With a population of more than 8 million people, it is a global epicenter of finance, culture, and commerce. However, living in New York is not for everyone: the average price of a home in Manhattan reaches $1.3 million, while rents for one-bedroom apartments exceed $3,500 per month.
In fiscal terms, residents face a municipal income tax of up to 3.876%, in addition to the state tax, which comes in at 10.9%. However, New York compensates for these costs with a first-class educational offer, with Columbia University and New York University (NYU) standing out.
In terms of transportation, the metro system is one of the most extensive and efficient in the world, although the associated costs, such as parking and taxis, can be high.
New York is a city of contrasts, where opportunities abound, but the cost of living in this iconic metropolis requires detailed financial planning and an ambitious mindset.
Consider your destination carefully
Deciding to settle in one of the most expensive cities in the United States to live in is a choice that requires extensive planning, especially for investors looking for opportunities in a country with a high lifestyle.
Each city on this list offers a unique set of benefits and challenges that should be evaluated based on factors such as the real estate market, educational quality, transportation cost, and fiscal impact.
If you are considering investing and relocating to one of these 10 most expensive cities in the United States, at Interlink FBC, we offer you personalized advice. Together, we can design a strategy for you to make safe and sound decisions. Contact us now.
