5 Most Expensive Cities in the US

Ever wonder where the most luxurious cities in the US are?

Here's a list of the top five according to kiplinger.com:

1. New York City

Cost of Living: 125.4% above average (Manhattan only)

City Population: 8,244,910

Median Household Income: $51,270

Median Home Value: $514,900

If you can make it here, you can make it anywhere. New York takes the top spot on our list of the most expensive cities, thanks in large part to its famously exorbitant real estate market. Housing costs in Manhattan, New York City’s most expensive borough, are 4.5 times the national average. Even in Brooklyn, they are nearly 3.5 times the norm; in Queens, more than double. The financial pain doesn’t stop there. Steep commercial rents and distribution costs mean groceries run more in New York than just about anywhere else in the U.S. Consider this: A T-bone steak from a Manhattan grocer averages $15.52. In Harlingen, Texas, the cheapest place to live in America, the same steak goes for $8.34.

2. Honolulu, Hawaii

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Cost of Living: 67% above average

City Population: 345,610

Median Household Income: $56,939

Median Home Value: $545,700

Hawaii has many positive attributes -- the beaches, the luaus, the world-class surf -- but the inflated cost of living isn’t one of them. The state’s remoteness means residents pay a premium for just about everything. Utilities in Honolulu run 67.6% above average; groceries, 58.1%; and transportation, 27.8%. More specifically: Gasoline costs 21% more than average, and a dozen eggs command 73% more. Housing expenses in the state capital are 2.5 times what’s typical for the rest of the U.S.

3. San Francisco, CA

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Cost of Living: 63.4% above average

City Population: 812,826

Median Household Income: $72,947

Median Home Value: $767,300

Living expenses in San Francisco can be as steep as the city’s famed hills. Housing costs, at nearly three times the national average, are the main culprit. The median value of a home in San Francisco is by far the highest on our list of expensive cities, beating out runner-up San Jose by a whopping $161,900. A typical apartment rents for $2,630 a month, triple the national average. One of the few bargains to be had in San Francisco: wine, which sells for 18% below the national average. Napa is just an hour north of the city.

4. San Jose, CA

Cost of Living: 53.4% above average

City Population: 967,487

Median Household Income: $80,764

Median Home Value: $605,400

What makes this city in the heart of Silicon Valley so expensive? Everything. Groceries and utilities exceed the national average by more than 20%, and health care expenses are nearly 20% above the norm. But as in most super-pricey cities, real estate is the real killer. Housing costs, at more than 2.5 times the national average, top everywhere else except New York and San Francisco. San Jose has the highest median household income on this list, which helps residents keep up with the big bills.

5. Stamford, Conn.

Cost of Living: 46.1% above average

City Population: 123,868

Median Household Income: $78,201

Median Home Value: $571,400

There’s good reason Stamford has the second-highest concentration of millionaire households in the country. Housing costs are double the national average, and other living expenses run anywhere from 17% to 32% above average. But the median household income is second-highest on our list, and the easy commute into New York makes the Connecticut city a much more affordable alternative to the Big Apple. Because while housing is indeed expensive, it still runs less than half what it costs to live in Manhattan.

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