In 2025, the cost of living in certain U.S. cities continues to soar, driven by high housing prices, limited land, and strong job markets. According to the Council for Community and Economic Research (C2ER) Cost of Living Index, which measures expenses across housing, utilities, groceries, transportation, healthcare, and miscellaneous services, the following 10 places rank as the most expensive in the U.S. With composite index scores ranging from 144.3 to 231, these urban areas, led by Manhattan, New York, reflect the premium cost of vibrant economies and desirable lifestyles. This article explores these costly locales and their unique challenges in 2025.
1. New York (Manhattan)
Manhattan, New York, tops the list in 2025 with a C2ER Cost of Living Index score of 231, more than double the national average of 100. Home to 1.6 million residents, Manhattan’s median home value is $1.2 million, with homes in the West Village costing $2,400 per square foot. In 2025, the median household income is $101,000, yet housing consumes 40% of budgets. With 350,000 millionaires driving demand, limited land, and high costs for dining and entertainment, Manhattan remains the priciest U.S. locale in 2025.
2. Honolulu, HI
Honolulu, Hawaii, ranks second in 2025 with a cost of living index of 186.2. With 343,421 residents, the city’s median home value is $650,000, and median household income is $97,000. In 2025, high import costs inflate groceries (20% above average) and utilities (67% above average). Limited land on Oahu drives housing scarcity, with rents averaging $2,800 for a one-bedroom. Honolulu’s tropical appeal and tourism-driven economy make it a costly paradise in 2025.
3. San Jose, CA
San Jose, California, third in 2025, has a cost of living index of 177.1. Known as the “Capital of Silicon Valley,” it houses 983,489 residents with a median home value of $1.2 million. In 2025, the median household income is $134,000, reflecting tech industry wealth. Groceries and utilities cost 15% above the national average, while low unemployment (3%) fuels housing demand. San Jose’s 300 sunny days and proximity to tech hubs make it a pricey destination in 2025.
4. San Francisco, CA
San Francisco, fourth in 2025, has a cost of living index of 169.6 and a population of 808,437. The median home value is $1.3 million, the highest among these cities, with rents averaging $3,761 monthly. In 2025, the median household income is $136,700, driven by tech giants. Groceries and utilities are 22% and 46% above average, respectively. San Francisco’s cultural vibrancy and Golden Gate views come at a steep cost in 2025.
5. New York (Brooklyn)
Brooklyn, New York, ranks fifth in 2025 with a cost of living index of 161.5. With 2.6 million residents, its median home value is $880,300, and rents average $3,695 monthly. In 2025, the median household income is $76,912, below the national average, straining affordability. Healthcare costs 28% above average, and high taxes add pressure. Brooklyn’s cultural hubs, like the Brooklyn Museum, and proximity to Manhattan drive its high costs in 2025.
6. Orange County, CA
Orange County, California, sixth in 2025, has a cost of living index of 154.9 and 3.2 million residents. The median home value is $1.1 million, with Newport Beach homes reaching $2 million. In 2025, the median household income is $113,702. Utilities and taxes are 46% above average, reflecting the region’s wealth. Beaches, top schools, and proximity to Los Angeles make Orange County a premium destination in 2025.
7. Los Angeles (Long Beach), CA
Los Angeles (Long Beach), seventh in 2025, has a cost of living index of 150.6 and a population of 3.8 million. The median home value is $903,700, with a median household income of $76,000. In 2025, housing costs dominate budgets, with rents averaging $2,500 for a one-bedroom. Groceries and transportation are 15% above average, but LA’s beaches and entertainment industry make it a costly yet desirable hub in 2025.
8. New York (Queens)
Queens, New York, eighth in 2025, has a cost of living index of 146.9 and 2.3 million residents. The median home value is $712,439, with rents averaging $2,800 monthly. In 2025, the median household income is $85,000, slightly above the national average. Proximity to Manhattan and airports like JFK drives demand, while healthcare and groceries cost 20% more. Queens’ diversity and transit access elevate its costs in 2025.
9. Washington, D.C.
Washington, D.C., ninth in 2025, has a cost of living index of 144.6 and 689,545 residents. The median home value is $600,000, with a median household income of $90,000. In 2025, government and tech jobs fuel demand, but housing consumes 30% of budgets. Groceries and utilities are 10% above average, while free attractions like the Smithsonian offset costs. D.C.’s walkable neighborhoods and job market make it expensive in 2025.
10. Boston, MA
Boston, Massachusetts, rounds out the list in 2025 with a cost of living index of 144.3 and 675,647 residents. The median home value is $703,600, and rents average $4,066 monthly. In 2025, the median household income is $81,000, driven by biotech and education sectors. Healthcare and groceries cost 26% and 16% above average, respectively. Boston’s historic charm and universities sustain its high cost of living in 2025.
Conclusion
In 2025, Manhattan, Honolulu, San Jose, San Francisco, Brooklyn, Orange County, Los Angeles (Long Beach), Queens, Washington, D.C., and Boston are the U.S.’s most expensive places, with cost of living indices from 144.3 to 231. High housing costs, driven by limited land and strong job markets, define these areas. Median home values range from $600,000 to $1.3 million, and incomes ($76,000–$136,700) often struggle to keep pace. Despite costs, their cultural richness and opportunities make them desirable in 2025.
