Cost of Living Comparison: Most vs Least Expensive US Cities in 2025

Where you live is the single biggest factor in your overall cost of living. The same lifestyle that costs $75,000/year in Memphis costs $135,000 in San Francisco. Understanding these differences helps with relocation decisions and salary negotiations.

Most expensive US cities (cost of living index, 100 = national average): San Francisco 180, New York City 175, Honolulu 170, San Jose 168, Boston 155, Washington DC 150, Los Angeles 145, Seattle 140, San Diego 138, Miami 135.

Least expensive US cities: Memphis 70, Oklahoma City 72, Little Rock 73, Birmingham 74, Knoxville 75, Tulsa 76, Wichita 76, Louisville 78, Indianapolis 78, San Antonio 80.

Housing drives the biggest differences. Median home prices: San Francisco $1.2M, San Jose $1.4M, New York $680K, National average $400K, Memphis $180K, Oklahoma City $200K, Little Rock $175K. Housing alone explains 60-70% of cost differences.

Rental costs follow the same pattern: San Francisco 1BR $2,800/month, NYC $3,000+, Boston $2,500, National average $1,400, Memphis $800, Oklahoma City $850, Little Rock $750.

Groceries vary 15-30% between expensive and affordable cities. A weekly grocery bill for a family of four: San Francisco $250-$350, National average $200-$275, Memphis $160-$225.

Healthcare costs vary by region: a routine doctor's visit costs $150-$300 in high-cost areas versus $100-$200 in affordable areas. However, quality of care and specialist availability are often better in higher-cost cities.

Transportation: car ownership costs are relatively consistent ($8,000-$12,000/year nationwide), but cities with good public transit (NYC, Chicago, DC) let you eliminate car expenses entirely, saving $800-$1,000/month.

Salary adjustments don't always keep pace with cost of living. A $100,000 salary in Oklahoma City provides the same lifestyle as $155,000 in San Francisco. But SF salaries are typically only 30-40% higher, not 55% higher.

The sweet spot for many people: mid-size cities with growing economies and moderate costs — Raleigh, Austin, Nashville, Denver, Salt Lake City, Tampa. These offer strong job markets at 100-120 on the cost index.

Remote work has changed the equation. Earning a San Francisco salary while living in a medium-cost city is the best of both worlds. Many companies now adjust salaries for location, but the math often still favors lower-cost areas.