Duane Walker / Getty Images
If you’re relocating for business, moving to another city, or simply planning a vacation, you might be curious about the most expensive cities in the United States. Understanding how much it costs to live in a town, and why, can make or break a decision to move.
Not surprisingly, New York and California cities dominate the list of America’s priciest cities. All figures are updated as of June 2024, unless otherwise specified.
Key Takeaways
Cities offer a variety of employment opportunities along with cultural, sports, dining, and entertainment activities.New York City’s Manhattan borough is the most costly place to live, followed by Honolulu, Hawaii, and San Jose, California.Housing and taxes contribute to the high cost of living in major cities.
1. Manhattan
Fatih Aktas / Anadolu Agency via Getty Images
Empire State Building in Manhattan
New York City’s Manhattan borough is the most expensive city in the United States. Out of the estimated 8.26 million people who call New York City home, about 1.60 million live in Manhattan. The cost of living in Manhattan is more than twice the national average.
Seemingly everything costs more in New York City, from groceries to housing. As of 2024, Manhattan’s median sold home price is about $936,000, compared with a national median of about $359,000. The city’s unemployment is 4.8% compared with a national unemployment rate of 4.0%.
2. Honolulu
Tyler D. Rickenbach / Aurora Photos / Getty Images
Waikiki Beach, Honolulu
Honolulu is the second most expensive place to live in the U.S. The U.S. Census Bureau estimated a population of nearly one million in the island city with an unemployment rate of 2.8%.
Groceries run about 24% higher than the national average, while utilities cost over twice as much. In 2024, the median household income in Honolulu is about $99,800, higher than the national median of about $74,600 but falling short of a median household income of about $136,700 for San Francisco.
3. San Jose
Sundry Photography / Getty Images
San Pedro Square in San Jose
San Jose is in California’s Bay Area with number 4 on this list, San Francisco. It has a population of about 970,000. Home values hover around $1.5 million, according to Zillow. The median household income for the city is about $136,000 as of 2024.
4. San Francisco
The city’s estimated population is about 809,000 as of 2024. San Francisco’s staggeringly high cost of living and out-of-reach housing prices make median home prices nearly $1.3 million inside the city. Major industries include tourism, IT, and financial services.
San Francisco ranks among the top five most expensive cities for groceries and utilities. Grocery items cost roughly 23% above the national average, and utilities cost about twice the national average in 2024. Unemployment is at an estimated 3.9%.
5. Brooklyn
Tim Robberts / Getty Images
The Brooklyn Bridge in New York, NY
Brooklyn is the second borough of New York City on this list. The area is known for some key attractions, including Coney Island and Prospect Park.
The population in Brooklyn is higher than the more expensive Manhattan, with nearly 2.6 million residents. The median home value of Kings County is $836,000. The average rent in the borough is around $3,600, or a total of $43,200 for the entire year in 2024.
Note
Housing and taxes are two major contributors to the high cost of living in most of the expensive cities in the United States.
6. Orange County
MAYBAYBUTTER / Getty Images
Laguna Beach, California
If you plan to call this area home, you’ll join about 3.1 million other people. This California region includes Newport Beach, Laguna Beach, and Huntington Beach with a big concentration of Fortune 500 companies. Home values here top $1 million. The median household income is about $109,000 as of 2024. The unemployment rate is 3.7%.
7. Los Angeles
Alexander Spatari / Getty Images
Santa Monica Pier in Los Angeles
Los Angeles brings to mind movie stars, but the movie and television industry plays a small role in the city’s booming economy. The city’s shipping industry also plays a part, as the Port of Los Angeles is one of the busiest ports in the world. A bustling manufacturing sector and a noteworthy start-up scene contribute to the city’s high cost of living. Certain ZIP codes like the famous 90210, drive up housing costs.
About 3.8 million people are living in the city in 2024. The median home value in Los Angeles is about $973,000. The median household income is around $76,200. A family of four with two working adults would need a pre-tax income of roughly $140,000 to make ends meet in Los Angeles. Finally, 16.6% of the city’s residents live below the poverty line, compared with 11.5% nationally.
8. Queens
Barry Winiker / Getty Images
Flushing Meadows in Queens, NY
Queens is the third borough of New York City to be featured on this list. As the largest borough, it is home to the city’s two airports, John F. Kennedy International Airport and La Guardia Airport.
About 2,250,000 people live in Queens with a median household income of around $82,400. The borough has a median home value of about $686,000 in 2024. 13.1% of the borough’s residents live in poverty.
9. Washington, D.C.
Celal Gunes/Anadolu Agency via Getty Images
The Supreme Court of the United States building is seen in Washington D.C., United States on September 24, 2023.
As the center of the country’s political power, Washington, D.C. boasts a high cost of living. Government and private-sector jobs abound in the city, thanks to numerous federal agencies, think tanks, lobbying firms, and a robust tourism sector.
About 679,000 people call the area home. Median home values are approximately $622,000, and the median household income is about $102,000 in 2024. A family of four with both adults working needs about $135,000 in income before taxes to make ends meet in Washington, D.C.
10. Boston
Getty Images | Dermot Conlan Boston Waterfront
Approximately 654,000 people live in Boston. Utilities and healthcare costs exceed the average national cost by 49% for utilities and nearly 24% for healthcare in 2024. Boston enjoys a robust higher education environment, a booming tech scene, and historic sites.
The unemployment rate is 2.9% in Boston and the surrounding areas as of 2024. The median home value hovers around $750,000. Household income is about $89,000, a little over half of what a family of four needs in pre-tax income (about $160,000) to make ends meet.
How Are Statistics Compiled To Determine the Most Expensive Cities in the U.S.?
The Council for Community and Economic Research publishes quarterly updates about the cost of living in the most and least expensive cities.
Why Are Cities So Expensive?
Various factors affect the cost of living in cities, especially major metropolises, such as the cost of housing and whether you choose to rent or buy. Other considerations include the cost of gas and transportation, taxes, child care, insurance, and utilities. Supply and demand tend to dictate prices, and when more people want to live in a certain place, the more expensive it will be.
What Are the Least Expensive Cities to Live in?
According to the Council for Community and Economic Research, the three least expensive cities in 2024 are Decatur, Illinois; Ponca City, Oklahoma; and Edinburg, Texas.
The Bottom Line
City living can be expensive. According to the Council for Community and Economic Research, three New York City boroughs and four areas in California made the top 10 list of most expensive cities during the first quarter of 2024. Median incomes are relatively lower compared to the cost of housing, food, gas, and taxes. The overall cost of living in these 10 cities is higher than the national average.
Read the original article on Investopedia.
Duane Walker / Getty Images
If you’re relocating for business, moving to another city, or simply planning a vacation, you might be curious about the most expensive cities in the United States. Understanding how much it costs to live in a town, and why, can make or break a decision to move.Not surprisingly, New York and California cities dominate the list of America’s priciest cities. All figures are updated as of June 2024, unless otherwise specified.
Key TakeawaysCities offer a variety of employment opportunities along with cultural, sports, dining, and entertainment activities.New York City’s Manhattan borough is the most costly place to live, followed by Honolulu, Hawaii, and San Jose, California.Housing and taxes contribute to the high cost of living in major cities.
1. Manhattan
Fatih Aktas / Anadolu Agency via Getty Images Empire State Building in Manhattan
New York City’s Manhattan borough is the most expensive city in the United States. Out of the estimated 8.26 million people who call New York City home, about 1.60 million live in Manhattan. The cost of living in Manhattan is more than twice the national average.Seemingly everything costs more in New York City, from groceries to housing. As of 2024, Manhattan’s median sold home price is about $936,000, compared with a national median of about $359,000. The city’s unemployment is 4.8% compared with a national unemployment rate of 4.0%.2. Honolulu
Tyler D. Rickenbach / Aurora Photos / Getty Images Waikiki Beach, Honolulu
Honolulu is the second most expensive place to live in the U.S. The U.S. Census Bureau estimated a population of nearly one million in the island city with an unemployment rate of 2.8%.Groceries run about 24% higher than the national average, while utilities cost over twice as much. In 2024, the median household income in Honolulu is about $99,800, higher than the national median of about $74,600 but falling short of a median household income of about $136,700 for San Francisco.3. San Jose
Sundry Photography / Getty Images San Pedro Square in San Jose
San Jose is in California’s Bay Area with number 4 on this list, San Francisco. It has a population of about 970,000. Home values hover around $1.5 million, according to Zillow. The median household income for the city is about $136,000 as of 2024.4. San FranciscoThe city’s estimated population is about 809,000 as of 2024. San Francisco’s staggeringly high cost of living and out-of-reach housing prices make median home prices nearly $1.3 million inside the city. Major industries include tourism, IT, and financial services.San Francisco ranks among the top five most expensive cities for groceries and utilities. Grocery items cost roughly 23% above the national average, and utilities cost about twice the national average in 2024. Unemployment is at an estimated 3.9%.5. Brooklyn
Tim Robberts / Getty Images The Brooklyn Bridge in New York, NY
Brooklyn is the second borough of New York City on this list. The area is known for some key attractions, including Coney Island and Prospect Park.The population in Brooklyn is higher than the more expensive Manhattan, with nearly 2.6 million residents. The median home value of Kings County is $836,000. The average rent in the borough is around $3,600, or a total of $43,200 for the entire year in 2024.
NoteHousing and taxes are two major contributors to the high cost of living in most of the expensive cities in the United States.
6. Orange County
MAYBAYBUTTER / Getty Images Laguna Beach, California
If you plan to call this area home, you’ll join about 3.1 million other people. This California region includes Newport Beach, Laguna Beach, and Huntington Beach with a big concentration of Fortune 500 companies. Home values here top $1 million. The median household income is about $109,000 as of 2024. The unemployment rate is 3.7%.7. Los Angeles
Alexander Spatari / Getty Images Santa Monica Pier in Los Angeles
Los Angeles brings to mind movie stars, but the movie and television industry plays a small role in the city’s booming economy. The city’s shipping industry also plays a part, as the Port of Los Angeles is one of the busiest ports in the world. A bustling manufacturing sector and a noteworthy start-up scene contribute to the city’s high cost of living. Certain ZIP codes like the famous 90210, drive up housing costs.About 3.8 million people are living in the city in 2024. The median home value in Los Angeles is about $973,000. The median household income is around $76,200. A family of four with two working adults would need a pre-tax income of roughly $140,000 to make ends meet in Los Angeles. Finally, 16.6% of the city’s residents live below the poverty line, compared with 11.5% nationally.8. Queens
Barry Winiker / Getty Images Flushing Meadows in Queens, NY
Queens is the third borough of New York City to be featured on this list. As the largest borough, it is home to the city’s two airports, John F. Kennedy International Airport and La Guardia Airport.About 2,250,000 people live in Queens with a median household income of around $82,400. The borough has a median home value of about $686,000 in 2024. 13.1% of the borough’s residents live in poverty.9. Washington, D.C.
Celal Gunes/Anadolu Agency via Getty Images The Supreme Court of the United States building is seen in Washington D.C., United States on September 24, 2023.
As the center of the country’s political power, Washington, D.C. boasts a high cost of living. Government and private-sector jobs abound in the city, thanks to numerous federal agencies, think tanks, lobbying firms, and a robust tourism sector.About 679,000 people call the area home. Median home values are approximately $622,000, and the median household income is about $102,000 in 2024. A family of four with both adults working needs about $135,000 in income before taxes to make ends meet in Washington, D.C.10. Boston
Getty Images | Dermot Conlan Boston Waterfront
Approximately 654,000 people live in Boston. Utilities and healthcare costs exceed the average national cost by 49% for utilities and nearly 24% for healthcare in 2024. Boston enjoys a robust higher education environment, a booming tech scene, and historic sites.The unemployment rate is 2.9% in Boston and the surrounding areas as of 2024. The median home value hovers around $750,000. Household income is about $89,000, a little over half of what a family of four needs in pre-tax income (about $160,000) to make ends meet.
How Are Statistics Compiled To Determine the Most Expensive Cities in the U.S.?
The Council for Community and Economic Research publishes quarterly updates about the cost of living in the most and least expensive cities.
Why Are Cities So Expensive?
Various factors affect the cost of living in cities, especially major metropolises, such as the cost of housing and whether you choose to rent or buy. Other considerations include the cost of gas and transportation, taxes, child care, insurance, and utilities. Supply and demand tend to dictate prices, and when more people want to live in a certain place, the more expensive it will be.
What Are the Least Expensive Cities to Live in?
According to the Council for Community and Economic Research, the three least expensive cities in 2024 are Decatur, Illinois; Ponca City, Oklahoma; and Edinburg, Texas.The Bottom LineCity living can be expensive. According to the Council for Community and Economic Research, three New York City boroughs and four areas in California made the top 10 list of most expensive cities during the first quarter of 2024. Median incomes are relatively lower compared to the cost of housing, food, gas, and taxes. The overall cost of living in these 10 cities is higher than the national average. Read the original article on Investopedia.
Amazon.com: Its Role in the U.S. Industry
Introduction
Amazon.com, often simply referred to as Amazon, has transformed from an online bookstore into a colossal global conglomerate that has fundamentally altered the landscape of retail, technology, and numerous other industries. Founded in 1994 by Jeff Bezos, Amazon’s rapid growth and diversification have made it a central player in the U.S. economy. Its impact is felt across various sectors, including e-commerce, logistics, cloud computing, entertainment, and even artificial intelligence. This article explores Amazon’s role in the U.S. industry, examining its influence, achievements, and the challenges it faces.
The Rise of Amazon.com
Origins and Early Growth
Amazon began as an online bookstore in Bezos’s garage in Bellevue, Washington. The vision was simple but revolutionary: to create an online platform where people could buy books. Bezos recognized the potential of the internet to disrupt traditional retail and chose books as his starting point due to their wide appeal and ease of distribution. By offering a vast selection and competitive prices, Amazon quickly gained a foothold in the market.
The company’s initial public offering (IPO) in 1997 marked the beginning of its journey toward becoming a dominant player in the U.S. and global markets. Amazon’s early success was driven by its focus on customer satisfaction, an extensive inventory, and a commitment to fast and reliable delivery. This focus laid the foundation for its expansion into other product categories and services.
Diversification and Expansion
Amazon’s diversification strategy began with the introduction of new product categories, such as electronics, toys, and apparel. This move positioned Amazon as a one-stop shop for consumers, significantly expanding its customer base. The company also introduced its marketplace platform, allowing third-party sellers to offer their products alongside Amazon’s own inventory. This not only increased the variety of products available but also created a new revenue stream for the company through commissions on sales.
One of the most significant milestones in Amazon’s diversification was the launch of Amazon Web Services (AWS) in 2006. AWS provided cloud computing services to businesses, enabling them to rent computing power and storage rather than investing in expensive infrastructure. This service quickly became a cornerstone of Amazon’s business, contributing significantly to its profitability and establishing Amazon as a leader in the tech industry.
Amazon’s Role in E-Commerce
Transforming Retail
Amazon’s impact on the retail industry cannot be overstated. It has revolutionized the way consumers shop, shifting much of retail activity from brick-and-mortar stores to online platforms. The convenience of shopping from home, coupled with Amazon’s vast selection and competitive pricing, has led to a fundamental change in consumer behavior. This shift has forced traditional retailers to adapt, leading to the rise of omnichannel strategies that integrate online and offline sales.
The concept of “one-click shopping,” patented by Amazon in 1999, further streamlined the online shopping experience. This innovation reduced the friction in the purchasing process, contributing to higher conversion rates and reinforcing Amazon’s dominance in e-commerce. Additionally, Amazon Prime, launched in 2005, offered customers free two-day shipping and other benefits for an annual fee, further solidifying customer loyalty and increasing the frequency of purchases.
Impact on Small Businesses
While Amazon has provided opportunities for small businesses through its marketplace platform, it has also posed challenges. On the one hand, small businesses gain access to a vast customer base and the logistics infrastructure that Amazon offers. On the other hand, they face intense competition, not only from other third-party sellers but also from Amazon itself. The company’s ability to undercut prices and its control over the marketplace platform have led to concerns about fairness and market power.
Moreover, Amazon’s algorithms and data-driven approach to retail have raised questions about the transparency of how products are promoted and priced on the platform. Small businesses often struggle to achieve visibility without spending on Amazon’s advertising services, which can be costly. Despite these challenges, many small businesses continue to rely on Amazon as a vital sales channel, underscoring its central role in the U.S. retail industry.
Amazon in the Logistics and Supply Chain Industry
Revolutionizing Logistics
Amazon’s impact extends beyond retail into logistics and supply chain management. To fulfill its promise of fast and reliable delivery, Amazon has invested heavily in building a sophisticated logistics network. This network includes a vast network of fulfillment centers, advanced robotics, and a growing fleet of delivery vehicles, including drones.
Amazon’s logistics capabilities have set new standards for the industry. The company has pushed the boundaries of what is possible in terms of speed and efficiency, challenging traditional logistics providers like FedEx and UPS. Amazon’s commitment to customer satisfaction has driven innovations such as same-day and even one-hour delivery in select areas, further raising consumer expectations.
In-House Logistics Services
In recent years, Amazon has taken steps to reduce its reliance on third-party logistics providers by expanding its in-house delivery capabilities. The launch of Amazon Logistics, a service that uses independent contractors to deliver packages, is a testament to this strategy. This move has enabled Amazon to exert greater control over the delivery process and reduce costs.
However, this expansion has not been without controversy. Amazon’s use of independent contractors has sparked debates about labor practices and the gig economy. Critics argue that Amazon’s business model places financial and physical burdens on its delivery drivers, who are often classified as independent contractors rather than employees. This classification exempts Amazon from providing benefits and protections typically afforded to employees, such as health insurance and minimum wage guarantees.
Amazon Web Services: The Backbone of the Internet
Dominating Cloud Computing
Amazon Web Services (AWS) has emerged as one of the most significant contributors to Amazon’s success. As the leading provider of cloud computing services, AWS powers a vast portion of the internet, supporting everything from startups to large enterprises. Its services include computing power, storage, databases, machine learning, and more.
AWS’s dominance in cloud computing has had a profound impact on the tech industry. By providing scalable and cost-effective solutions, AWS has lowered the barriers to entry for new businesses, fostering innovation and entrepreneurship. Companies no longer need to invest heavily in physical infrastructure; instead, they can rent the necessary resources on demand from AWS.
Economic Impact and Innovation
The success of AWS has not only boosted Amazon’s financial performance but also contributed to the broader U.S. economy. AWS has created jobs, driven innovation, and supported the growth of numerous tech companies. Its services have become integral to the operations of many businesses, from streaming services like Netflix to financial institutions and government agencies.
AWS’s role in advancing technologies such as artificial intelligence and machine learning has also been significant. By making these technologies accessible through cloud services, AWS has enabled companies to develop new applications and services that were previously out of reach. This has spurred growth in sectors such as healthcare, finance, and entertainment.
Amazon’s Influence on Entertainment and Media
Amazon Studios and Prime Video
Amazon’s foray into the entertainment industry began with the launch of Amazon Studios and Prime Video. These platforms have become key players in the streaming wars, competing with giants like Netflix, Disney+, and HBO Max. Amazon Studios produces original content, including critically acclaimed series like The Marvelous Mrs. Maisel and The Boys, as well as feature films.
Prime Video, available as part of the Amazon Prime membership, has become a major driver of subscriber growth. By offering a mix of original content and licensed programming, Amazon has been able to attract a diverse audience. The company’s investment in high-quality content has not only boosted its streaming service but also positioned it as a significant player in Hollywood.
Impact on the Publishing Industry
Amazon’s origins as an online bookstore continue to influence the publishing industry. The company has become the largest bookseller in the world, both in physical books and e-books. The Kindle, Amazon’s e-reader, revolutionized the way people consume books, making digital reading mainstream.
However, Amazon’s dominance in the book market has raised concerns among publishers and authors. The company’s pricing strategies and negotiation tactics have led to disputes over revenue sharing and control. Amazon’s influence over the publishing industry extends to self-publishing, where its Kindle Direct Publishing platform allows authors to bypass traditional publishers and reach readers directly. While this has democratized publishing, it has also led to an oversaturation of the market and challenges in quality control.
Challenges and Criticisms
Regulatory Scrutiny
Amazon’s immense size and influence have made it a target for regulatory scrutiny. In the U.S. and abroad, lawmakers and regulators have raised concerns about the company’s market power, labor practices, and treatment of third-party sellers. Antitrust investigations have been launched to determine whether Amazon engages in anti-competitive behavior, such as favoring its own products over those of third-party sellers on its platform.
The company’s expansion into various industries has also led to concerns about its dominance and potential to stifle competition. Critics argue that Amazon’s control over data, logistics, and retail gives it an unfair advantage, making it difficult for smaller companies to compete. In response, there have been calls for greater regulation and even the potential breakup of Amazon into smaller entities.
Labor Practices and Workers’ Rights
Amazon’s labor practices have come under intense scrutiny, particularly in its fulfillment centers and delivery network. Reports of grueling working conditions, high injury rates, and inadequate breaks have sparked widespread criticism. Workers have organized protests and strikes, demanding better pay, safer working conditions, and the right to unionize.
The company’s use of technology to monitor and manage workers has also raised ethical concerns. Amazon’s reliance on algorithms to track productivity and enforce performance targets has been criticized for creating a dehumanizing work environment. The company’s resistance to unionization efforts has further fueled debates about workers’ rights and corporate responsibility.
Environmental Impact
As one of the largest companies in the world, Amazon’s environmental impact is significant. The company’s vast logistics network and rapid delivery services contribute to carbon emissions and packaging waste. Amazon has faced criticism for its role in driving consumerism and its contribution to environmental degradation.
In response, Amazon has pledged to become more sustainable. The company launched the Climate Pledge in 2019, committing to reach net-zero carbon emissions by 2040. Amazon has also invested in renewable energy, electric delivery vehicles, and sustainable packaging. While these efforts are a step in the right direction, critics argue that more needs to be done to address the environmental impact of the company’s operations.
