As one can guess, higher paying jobs leads to higher costs of living. In fact, more than half of the 20 cities surveyed by the US Census Bureau are based in California. Let's look at where Americans pay the most to live and why.
How is it that California is so dominant in the expensive costs of living category? The mass of settlers first arrived on Plymouth Rock 300 years ago. And 3,300 miles is a long way to travel, especially on horse and foot!
Besides the gold rush, the main reason for the unfettered move out west is warmth and sunshine!
There is a reason why the 2nd most number of billionaires live in San Francisco (48). California and Hawaii are two of the best states for retirement.
High Costs Of Living And More Sun
Every time I vacation in Hawaii, I always ask myself, why the heck ain't I here for good. Let's face it, more sunshine equals happier people. Sunshine is the classic zeitgeber to help us wake up and get us motoring in the morning. No sunshine leads to no photosynthesis, which means no plant life, and therefore no ecosystem.
After 10 years of living on the east coast, I can still feel the grey skies weigh down my soul every winter. Don't get me wrong. I love the winter snow during the holidays. But I just love being in a cheerful mood more. Here are America's most expensive places to live based off median monthly housing costs.
Top Cities Where Americans Pay The Most To Live
1. San Jose, Calif. Median Monthly Housing Costs: $1,828
2. Bridgeport, Conn. Median Monthly Housing Costs: $1,793
3. Oxnard, Calif. Median Monthly Housing Costs: $1,780
4. Washington, D.C. Area Median Monthly Housing Costs: $1,706
5. San Francisco, Calif. Median Monthly Housing Costs: $1,660 (Here!)
8. Honolulu, Hawaii. Median Monthly Housing Costs: $1,532 (There!)
15. Trenton, New Jersey. Median Monthly Housing Costs: $1,401 (So not there!)
19. Seattle, Washington. Median Monthly Housing Costs: $1,368 (On the West Coast, but not as expensive likely due to rain)
Source: Forbes
Related: The Top 20 Cities To Buy Real Estate Today
Cities That Require The Highest Household Incomes To Afford A Typical House
In 2024, here's a great analysis from Zillow that shows how much households need to make to afford the typical house in the top 50 cities.
As you can see from the chart, cities in California continue to dominate. Honolulu is interestingly not on the list. But if it was, it would require at least a $180,000 household income given the median home price is around $780,000 in Honolulu today.
Despite the high cost of living in these cities, the income opportunities are also the greatest. There's a tech boom and an artificial intelligence boom that has the potential to make hundreds of thousands of people rich. As a result, you want to be in areas that are showing tremendous capital infusion and job growth.
When you retire with your millions, you can then consider some of the no states with no inheritance and estate taxes.
Go To Paradise And Make More
So there you have it. Did the cities with the highest costs of living surprise you? Would you be willing to pay $131/month more to live in Honolulu, Hawaii than Trenton, New Jersey? You bet your buns of steel I would!
The next time you are feeling a little glum, look outside and see if the weather has anything to do with it. And if so, come back to this post and plan your move out west.
If you're paying high costs of living might as well be in the sunshine.
300 years ago, it would have taken you months to come out west. Now, all it takes is a two week bus ride at most. Don't be afraid to pack up your bags and move, even with a family.
Leo from Zenhabits, with his 6 children are moving to San Francisco from Gaum, and Ryan from Planting Dollars left Wisconsin for Hawaii, why can't you? After experiencing 10 years on each coast, there is no doubt in my mind that living in a warmer, sunnier place is the way to go. See you on the beach this winter!
Related: West Coast Living – It Really Is that Much Better!
Recommendation: Invest In Real Estate
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Can I get some tips for relocating to California or Hawaii? Which is better for schools? How much should I earn to make a living there? It would be me, my husband, and 2 kids moving there.
Depends where you are relocating from Kelly. California is more expensive than anywhere on average except for Manhattan, and perhaps Honolulu, HI.
What level schools are you talking about?
@The Financial blogger
I really loved this article. It describes my viewpoint completely. I currently live on the east coast in Northern Ohio. Now, let me tell you that winters here in Ohio take up 3 quarters of the year. Yes, it really puts a damper on my spirit. Not only are the winters long, but even the summers are cloudy and dreary. I’d say it’s cloudy 85% of the time, the skies here are cloudy, overcast skies. When I go to the store, you can see it in the people’s faces that they are affected by it. I live for sunshine. Who doesn’t love sunshine!? I plan on moving to either Hawaii or California whenever I can. The only problem is money. I am a stay at home/work from home mom and my husband works all the time. I’m all for taking a risk and making a new life somewhere warm, but I can’t convince my husband to give up his job. I’ll still be able to keep my job as a medical transcriptionist since I’m employed nationwide, but my husband will have to start all over somewhere else. He works for an excavating company, and I don’t think there are many excavating jobs in Hawaii, maybe california. Anyway, point is I hate the cold, cloudy weather here and I refuse to live my whole life in Ohio.
Life is too short to live in Northern Ohio Kelly. Trust me when I tell you , you will be SO MUCH happier not living there! Whatever job you have in Ohio, you can DEFINITELY find it in C or HI!
@NorCal_lost
Hmmm.. an hour South of Atlanta doesn’t sound that great. 200K houses though, what a steal! :) I hear ya. Today was 70 degrees with no humidity. Went for a hike and played tennis.
Taxes here are killer though… but it’s worth it being happy. Although, chilling at the Wal Mart parking lot sounds fun!
Born in SF, raised in Sacramento, 2 years in Anchorage, now an hour south of ATL….and really, really, really miss California. The weather here sucks and the food is gross!!!! 3 P.M. thunderstrorms everyday in the summer get old, as does the hellish humidity. Too cold to go out in the winter. Outdoor activities are either hunting or Wal Mart parking lot. Moutains here are speed bumps west of the Rockies.
Work wise my wife makes $110 dollars less a day here then in California as a Dental Hygienist. I work DOD so pay is pretty uniform thru-out U.S. Besides housing, everything else here is the same. 200k house…$1700 taxes a year. The past 7.5 years in central Georgia have been very long and boring. Florida weather sucks too in comparison to San Diego and So Cal. To those who are thinking of leaving Cali, make sure you do your homework! The houses may be less expensive and bigger, but you will be in them ALOT!! The idea of a good time where you move may be called a, ” Pig Jig!” No joke do a search…. Oh yea… Southerners may have discovered NASCAR, but driving for most is not a gift, most think it is still 1953 and 45MPH is fast. I miss 75 MPH traffic on the 5.
Wow, San Jose is pric-yyy! I’m a west coast lover as well. Everything seems a bit “dark” when you go to the east coast. Maybe it’s because of the lack of ocean in the major cities on the east.
It is true about the less motivated part. People who come over here from Toronto are are more “go go go” and have a much deeper work ethic. (Whereas people here in Vancouver somehow find a way to make money without have a 8-6 job *COUGH* *Drug money* *cough*).
.-= youngandthrifty´s last blog ..Wondering if Pet Insurance Claim will be Approved =-.
Youngandthrifty – And San Jose can’t hold a candle to San Francisco! Actually, since the figures are an average, the real price is probably 25% higher for most people, if that makes any sense.
East coast grey skies, I can’t take. It weighs my soul too heavily. I’d rather be warmer and happier. Life is too short.
This one hits home, especially since I used to live in Honolulu. Yes it is worth every penny. Most people ask why would you come back to Texas. In the end, its not where you live, but the friends and family you have around you.
If you do plan on moving to Hawaii though, plan on being cramped if you decide to get an apartment.
Mr. Finance – Thanks for stopping by and good to hear you are enjoying life in my dream state! The good thing about being in SF is that so long as I don’t retire in Manhattan, pretty much everywhere is cheaper.
Look forward to more of your Hawaii insights! You and Ryan from Planting Dollars should meet.
I live in Bangkok. Are any of the other commenters / readers from here or is it just me?
-Mike
Mike – I think you might be the only one visiting from Thailand. There are some from China Philippines, New Zealand, and other countries though!
If you could live anywhere, where would you live?
It’s hard to say; there are so many places that look good on paper (so to speak), but that I can’t say for certain I’d want to live until I visited. My fiancee and I have talked about Japan quite a bit, so that’s probably at the top of the list.
Why do people on the East Coast choose to submit themselves to harsh climates?
As mentioned, there are lots of reasons; my family (on my mom’s side, at least) all live close by, I was born and raised here, and I like to have seasons like fall and winter. Besides, I think we can make a good case for the weather around here (Pennsylvania) not being that harsh; we get a really bad winter about as often as you get an earthquake, so I think we’re still doing alright.
Plus, given the choice between driving on ice covered, snowy roads and driving on California highways, I’ll take the icy roads hands down. Driving in California was one of the least fun experiences I’ve ever had, and if it weren’t for my fiancee’s family and their insistence on living there, I would never, ever do it again.
Do you think people fear that living in a more pleasant environment might make people friendlier and less motivated?
Maybe; it makes an interesting psychological question.
.-= Roger´s last blog ..Net Worth Update: Going Back to School =-.
Every time I go out to California for any reason I regret having to come back to Utah.
@Financial Samurai
I absolutely love Tampa but I am also very fond of San Diego too. I have only been there once for a few days to visit family but except for the high cost of living and the state income tax it’s hard to beat the weather and the views in San Diego.
.-= Credit Card Chaser´s last blog ..Are Credit Card Companies Evil if They Don’t Waive Fees on Haiti Donations? =-.
Joel – Cool man. Can’t beat the 0% state income tax of Florida! Been to Tampa a couple times, donno, a little too sleepy for me, same w/ San Diego.
Bloom where you are planted – and visit the other places :)
@ Financial Samurai:
Montreal is pretty cold in winter but you should see it during summer time… there is not only the city that is hot if you know what I mean ;-)
Kelowna is amazing and it snows only twice a year during winter time so it’s not California, but it’s not that bad either ;-)
@Mike Hunt
Mike, you live in Bangkok now, or are you saying go to Bangkok and live? Seems like a lot of the community is in Bangkok. I may have to join.
The cost of living in SF is high, but it is accompanied by high wages, otherwise, it’s unsustainable.
@Ryan @ Planting Dollars
I really think there is a truth to lazying out if one lives in too beautiful and comfortable a place. I’ve found myself unmotivated to do anything when I’m in Hawaii, although, I am there on vacation!
Live in Bangkok, Thailand. Chiang Mai is pretty nice too and the weather is a bit cooler.
It is very hot here year round but it’s a great value for money living here.
Ideal place for me is Southern California or perhaps San Francisco. It costs a lot to live there but I really like the year round outdoor friendly weather!
-Mike
If you could live anywhere, where would you live?
In the short term, anywhere with good diving. In the long term – back in Wisconsin because I’ve learned to love it by being raised there and enjoy having close knit friends and family in one place. It’s the only place that feels like home.
Why do people on the East Coast choose to submit themselves to harsh climates?
Family, friends, and familiarity. I think it’s why most people stay wherever they’re at… there’s not enough upside to motivate them to take a risk. I think most people are motivated by things more important to them than climate. Climate actually wasn’t my reason for moving, but having the ability to scuba was. Just happens that they go hand in hand.
Do you think people fear that living in a more pleasant environment might make people friendlier and less motivated?
Yes!! Just met a guy yesterday who said everyday feels like groundhogs day out here and he never knows what he does with his days. I think it’s harder to “get ahead” career wise when there’s a beach a block away and gorgeous distractions everywhere. However, I’m trying very hard to have both ;)
.-= Ryan @ Planting Dollars´s last blog ..Home Mortgage Calculators, 5 Ways to Workout Your Abode’ =-.
FS – Atlanta has it’s advantages–low cost, mild winters, breathtaking springs, wide open spaces, well conceived public parks and an outstanding physical structure. But close knit community isn’t part of the package–probably for all the same reasons.
.-= Kevin@OutOfYourRut´s last blog ..The High Cost of Convenience =-.
@Kevin@OutOfYourRut
Yikes Kevin, I’m depressed now just reading your comment about Atlanta!
@Marc
DC, been there done that. Georgetown area and such is/was fun, but the weather was just too much during the winters and summers. I think I sneezed my head off every spring!
@David
Hmmm… Minn. would be one of the last places I would figure someone to mention as the place they could live anywhere. More power to you!
@LeanLifeCoach
Lean-san, we need more people to go to Souther California, since I’m in Northern California and pay more taxes since we got a budget problem! Come one, come all and pay our 10% state tax!
@David @ MBA briefs
David, I’m impressed nobody has called me out about my somewhat biased and silly question of “fearing to be more friendly being in a more agreeable climate” :)
Ahhh I would love to live in Hawaii! I would live in a 300 square foot apartment if I lived there because I don’t know if I could hack paying for something more expensive!
.-= Mrs. Money´s last blog ..Happy Birthday, Ultimate Money Blog! =-.
I’m working hard to move back to northern Cali. I used to live in Santa Cruz and it was perfect. I’d like to end up anywhere south of San Francisco and north of Monterey.
I’m in Washington, D.C. now and I like it well enough, but nothing beats the weather and the people in NorCal. The wife’s family is out in southern California too, so it’d be nice to be closer to them.
Can’t believe Trenton came in at #15 – that’s on my list of places I don’t ever want to live (along with the rest of New Jersey).
My whole life is in Minnesota. I’ve lived here my entire life and I love the Twin Cities. With that being said, I would like to at least live here part of the year. The winters are pretty harsh, but I have to say I am used to them. Summers are awesome here and there’s nothing like going up north to the Brainerd/Nisswa area. I hope to have a cabin there in the future.
So I guess I would have to say Minnesota, though climate has little to do with that decision.
.-= David´s last blog ..Sleeping At Last Sing-A-Long =-.
@RainyDaySaver
Rainy Day Saver – Your comments about your ties to family and friends has reminded me about something else I prefer about the Northeast.
Here in Atlanta, as I’m sure it is in most Sunbelt locations, there’s a noticeable absence of community. Not as in physical community (though it is partially this as well) but in terms of a people based community.
With a relatively static populations, communities in the NE tend to be close knit; everybody knows everybody, as well as their families and family histories. Extended families tend to live in close circles, maybe not in the same town, but in a nearby one. It’s almost a European construct. Families live in the same community for generations.
The transient nature of the Sunbelt population replaces true community with a faux version. Life here revolves around the malls, where you’re mostly alone in a crowd; there are very few downtown areas. Subdivisions are the center of physical community, but people seldom know most of their neighbors, and there’s good reason: people move every 4-5 years. Look up and down your street, and nearly all of your current neighbors will be gone within five years. People are more like ships passing in the night.
I think that alone is a compelling reason why someone might stay in an area with lousy weather and even a high cost of living.
.-= Kevin@OutOfYourRut´s last blog ..The High Cost of Convenience =-.
Samurai-san, you’re breaking your oath to make Cali sound crummy. The way you’re talking everyone will want to move there and then it won’t be nearly as nice!
Honestly, I miss Cali but moving to Atlanta gave us twice as much R.E. for half the money! Income actually went up so financially it was a no-brainer. The other big piece of it is family; with young kids being close to the grandparents is always a nice thing.
@Evan – Don’t listen to him, Za’s Pizza is great but the right slice of NY pizza can’t be beat!
.-= LeanLifeCoach´s last blog ..Sometimes More Is Less =-.
I’m born and raised in Brooklyn, NY and relocated to Austin, TX summer 2008. I will never move back. Great weather, 20k raise, no state taxes, low cost of living. I feel like I have been on a 2 year vacation and love it. Hopefully my family and friends smarten up.
@RainyDaySaver
This list isn’t the normal one you see on most expensive cities. This is a list that attempts to rank cities based solely on average monthly home costs.
I don’t know, I’ve been to NJ many times in the past, and I’m not a fan. I would move away, and go back and visii my family on occasion. Or they can just come visit me in Hawaii!
@Kevin@OutOfYourRut
Like the diversity of the cities! Never been to Atlanta. Don’t think I ever well. I remember long ago applying to Emory University, but didn’t end up going.
@Bucksome
SD weather is amazing, I’ll have to agree. Probably the best in the entire US! I could live there for 3 months a year, but I think I’d get bored.
If you could live anywhere, where would you live? That’s a tough one. I’d love to live on Vieques, a little island off Puerto Rico full of ex-pats, but I’m afraid I’d get tired of all the problems of living on an island. Or maybe the Black Forest area of Germany which is beautiful and where my ancestors hale from. But every place has good points and bad points.
Why do people on the East Coast choose to submit themselves to harsh climates? I grew up on the East Coast and spent most of my life there and the answer it’s good to live somewhere where you have family and a history and roots. The hardest part of relocating around the country is having to start over from scratch and being completely alone.
Do you think people fear that living in a more pleasant environment might make people friendlier and less motivated? I don’t know about the fearing part, but it seems to me people in warmer climes are more laid back than people from areas where life is harder. But seeing as how I’m months away from spring that’s not sounding like such a bad thing:-)
.-= David @ MBA briefs´s last blog ..How to analyze stocks like a pro – part 4 =-.