​

Financial Samurai

Slicing Through Money's Mysteries

  • About
  • Invest In Real Estate
  • Top Financial Products
    • Free Wealth Management
    • Negotiate A Severance
  • Buy This, Not That (Bestseller)

Where Americans Pay The Most To Live And Why

Updated: 07/08/2021 by Financial Samurai 71 Comments

high costs of living and sunshine - Where Americans Pay The Most To Live And Why
Samurai On Waialae Beach At Sunset

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

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

If you’re looking to buy property as an investment or reinvest your house sale proceeds, take a look at Fundrise, one of the largest real estate crowdfunding platforms today. They allow everyone to invest in mid-market commercial real estate deals across the country that were once only available to institutions or super high net worth individuals.

They are the pioneers of eREIT funds and they are creating an Opportunity Fund to take advantage of tax-efficient Opportunity Zones. Thanks to technology, it’s now much easier to take advantage of lower valuation, higher net rental yield properties across America.

Fundrise Due Diligence Funnel
Less than 5% of the real estate deals shown gets through the Fundrise funnel
Tweet
Share
Pin
Flip
Share

Filed Under: Career & Employment, Real Estate, Retirement Tagged With: irrational, rankings, Reality

Author Bio: I started Financial Samurai in 2009 to help people achieve financial freedom sooner. Financial Samurai is now one of the largest independently run personal finance sites with about one million visitors a month.

I spent 13 years working at Goldman Sachs and Credit Suisse. In 1999, I earned my BA from William & Mary and in 2006, I received my MBA from UC Berkeley.

In 2012, I left banking after negotiating a severance package worth over five years of living expenses. Today, I enjoy being a stay-at-home dad to two young children, playing tennis, and writing.

Order a hardcopy of my new WSJ bestselling book, Buy This, Not That: How To Spend Your Way To Wealth And Freedom. Not only will you build more wealth by reading my book, you’ll also make better choices when faced with some of life’s biggest decisions.

Current Recommendations:

1) Check out Fundrise, my favorite real estate investing platform. I’ve personally invested $810,000 in private real estate to take advantage of lower valuations and higher cap rates in the Sunbelt. Roughly $160,000 of my annual passive income comes from real estate. And passive income is the key to being free.

2) If you have debt and/or children, life insurance is a must. PolicyGenius is the easiest way to find affordable life insurance in minutes. My wife was able to double her life insurance coverage for less with PolicyGenius. I also just got a new affordable 20-year term policy with them.

Subscribe To Private Newsletter

Comments

  1. Kelly says

    February 23, 2011 at 3:19 pm

    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.

    Reply
    • Financial Samurai says

      February 24, 2011 at 6:33 pm

      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?

      Reply
  2. Kelly says

    February 23, 2011 at 3:13 pm

    @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.

    Reply
    • Financial Samurai says

      February 24, 2011 at 6:34 pm

      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!

      Reply
  3. admin says

    February 15, 2010 at 3:34 pm

    @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!

    Reply
  4. NorCal_lost says

    February 15, 2010 at 12:39 pm

    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.

    Reply
  5. youngandthrifty says

    February 6, 2010 at 9:03 am

    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 =-.

    Reply
    • admin says

      February 6, 2010 at 9:07 am

      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.

      Reply
  6. Mr. Finance says

    February 1, 2010 at 8:02 am

    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.

    Reply
    • admin says

      February 1, 2010 at 8:28 am

      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.

      Reply
  7. Mike Hunt says

    January 19, 2010 at 7:11 pm

    I live in Bangkok. Are any of the other commenters / readers from here or is it just me?

    -Mike

    Reply
    • admin says

      January 19, 2010 at 10:09 pm

      Mike – I think you might be the only one visiting from Thailand. There are some from China Philippines, New Zealand, and other countries though!

      Reply
  8. Roger says

    January 18, 2010 at 7:04 pm

    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 =-.

    Reply
  9. Edwin says

    January 18, 2010 at 6:01 pm

    Every time I go out to California for any reason I regret having to come back to Utah.

    Reply
  10. Credit Card Chaser says

    January 18, 2010 at 3:39 pm

    @admin

    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? =-.

    Reply
    • admin says

      January 18, 2010 at 4:21 pm

      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.

      Reply
  11. Oahu Vacation Rental says

    January 17, 2010 at 8:58 pm

    Bloom where you are planted – and visit the other places :)

    Reply
  12. The Financial blogger says

    January 17, 2010 at 5:09 am

    @ 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 ;-)

    Reply
  13. admin says

    January 17, 2010 at 12:49 am

    @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!

    Reply
« Older Comments

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *


n

Top Product Reviews

  • Fundrise review (real estate investing)
  • Policygenius review (life insurance)
  • Personal Capital review (free financial tools)

Financial Samurai Featured In

Categories

  • Automobiles
  • Big Government
  • Budgeting & Savings
  • Career & Employment
  • Credit Cards
  • Credit Score
  • Debt
  • Education
  • Entrepreneurship
  • Family Finances
  • Gig Economy
  • Health & Fitness
  • Insurance
  • Investments
  • Mortgages
  • Most Popular
  • Motivation
  • Podcast
  • Product Reviews
  • Real Estate
  • Relationships
  • Retirement
  • San Francisco
  • Taxes
  • Travel
Buy This Not That 728 Banner
  • Email
  • Facebook
  • RSS
  • Twitter
Copyright © 2009–2022 Financial Samurai · Read our disclosures

PRIVACY: We will never disclose or sell your email address or any of your data from this site. We do highly welcome posts and community interaction, and registering is simply part of the posting system.
DISCLAIMER: Financial Samurai exists to thought provoke and learn from the community. Your decisions are yours alone and we are in no way responsible for your actions. Stay on the righteous path and think long and hard before making any financial transaction! Disclosures