Featured Image Credit: Getty Stock
Topics: Property, California, Money
William Morgan
Making enough money to get by is an increasingly impossible task for millions of Americans, with the cost of just about everything skyrocketing over the past five years of oil price shocks and rampant inflation.
Since 2021, it has become roughly 25 percent more expensive to rent a home, purchase groceries, and buy most goods in a store across the country, according to the latest cost of living analysis by Statista.
Polling shows that the general public are more concerned about the rising cost of everything than any other personal or political issue, with 54 percent of Americans citing it as their most important concern.
But this added pressure on households is not evenly distributed, with some parts of the country becoming increasingly unaffordable for ordinary people due to eye-watering housing costs that are rapidly outstripping local wages.
Advert
The most expensive place to live in the whole of America is Newport Beach, CA, according to rankings compiled by US News, after analyzing the property values, rental costs, and median salaries of people living in 859 cities across the country.
This highly sought after seaside location in the Sunshine State is renowned for its beaches and relaxed lifestyle, as well as its plethora of expensive homes for people looking to leave big city life behind. But it'll cost them, with rents roughly $1300 per month more costly than the average of $1487.
While the area's median household income sits at a comfortable $162,000 per year, double the national average, homes go on sale for more than six times the average house price nationwide. So, you might feel well off living in beautiful Newport Beach, but you'll be paying through the nose to just have a roof over your head.
The second most expensive place to put down roots is Westminster in Orange County, CA, which has seen a boom in interest in recent years thanks to its strong cultural scene and relative closeness to the beach.
However, unlike Newport Beach, the average salary of people living in this city of around 90,000 is roughly at the national average, despite the median monthly rental costs in Westminster reaching $2058 per month.
The price to buy a home in the area is only slightly better than in sought-after Newport Beach, with the median house value in the city being $854,438, or 10 times what most local people are being paid.
Daly City, CA was ranked as the third priciest place to live in America, with some in the area describing it as almost being a 'bedroom community' due to many people buying here in order to commute around the even more expensive Bay Area.
Sadly, this influx of workers who cannot afford to live in San Francisco has ramped up the unaffordability in Daly City by pushing up housing costs for the people who already live there, a common story in communities across California.
While this has led to a higher than usual household income of $123,332, it has also made average rental costs reach $2385 per month and average house prices increase to $1,117,275.
Spring Valley in Rockland County, NY, is the fourth most expensive place to live in America, and the only location to make it into the top six from the East Coast. And just like Daly City, this area has been cursed by its value for money for commuters.
This has pushed rental costs to above the national average, though still much cheaper than all of the cities in California that made the list at $1607 per month.
However, unlike the Sunshine State, average salaries here are almost a third of those enjoyed by Newport Beach residents, as the median household income in Spring Valley is just $63,843. The average home is valued at $458,694.
Ranked as the fifth priciest place to live, Downtown LA's Huntington Park suffers from a similar problem to Spring Valley, with typical household incomes in the post-industrial neighborhood sitting at just $63,669.
At the same time, residents are expected to cough up $1407 to rent a home, or pay twice the national average to buy a typical home in Huntington Park, which go for $629,137. This is despite the rundown area being named California's 'most miserable city' in 2019.
Santa Cruz, CA was ranked as the sixth most expensive place to live, and the fifth location in California where its residents face a much higher cost of living, but with the benefits of living in this vibrant and diverse city, many likely don't mind the extra cost.
Households in Santa Cruz typically earn around $114,270, but would have to cough up $1,274,512 to buy an average home in their area. Or, just to rent a property in the picturesque seaside city, pay $2044 per month.
But, if you want to live in the cheapest place in the US, the best value for money can be found in Decatur, Illinois, where the average salary is $51,955 but typical rents would run you just $655 per month. A home would set you back just $95,976.