A recent report sheds light on why California earns its moniker as the “Golden State.”
According to the 2023-2024 list by U.S. News and World Report, San Diego claims the title of the most expensive city in the nation, closely followed by Los Angeles.
This designation is based on various factors, including inflation rates and gas costs. The report also takes into account living expenses like annual housing costs, median rent, and the high fees associated with homeownership.
The study notes that home prices in San Diego surpass the national median sale price. Additionally, many residents in downtown San Diego must contend with homeowners association fees to maintain their housing complexes.
“Living in San Diego is not particularly affordable,” the report emphasizes. “However, San Diegans are willing to pay these elevated prices, often referring to the cost-of-living differences as the ‘sunshine tax,’ or the price of enjoying a year-round temperate climate.”
Following San Diego, Los Angeles secures the second spot, with Honolulu and Miami rounding out the top expensive cities. Remarkably, California dominates seven of the top ten spots on the list and approximately half of the top 25. New York City, the most populous city in the U.S., lands in the 11th position.
The report highlights that cities at the top of the list demand a significant level of wealth to maintain a comfortable standard of living.
Here are the top 25 most expensive American cities according to the U.S. News & World Report:
- San Diego
- Los Angeles
- Santa Barbara, Calif.
- San Francisco
- Salinas, Calif.
- Santa Rosa, Calif.
- San Juan, Puerto Rico
- Vallejo and Fairfield, Calif.
- New York City
- San Jose, Calif.
- Sacramento, Calif.
- Stockton, Calif.
- Washington, D.C.
- Modesto, Calif
- Fresno, Calif.
- New Haven, Conn.
- Boulder, Colo.
- Trenton, N.J.
- Eugene, Ore.
The rankings are categorized based on four indexes: Quality of Life Index (36%), Value Index (23%), Desirability Index (22%), and Job Market Index (19%).