15 U.S. Cities Only the Wealthy Can Afford to Live In
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The top 1% of households now hold over 30% of the nation’s wealth, while the bottom 50% hold only about 2%. Data from the Bureau of Economic Analysis reveals that the national average cost of living index is often set at 100.
Housing tends to be the largest component of living expenses, with metropolitan areas like San Francisco, New York City, and Los Angeles requiring higher incomes to sustain a comfortable lifestyle.
New York City, NY
It comes as no surprise New York City is not cheap. Fine dining at Michelin-starred restaurants, courtside seats at Madison Square Garden to see the Knicks play, or hours-long shopping sprees down Fifth Avenue are only the tip of the iceberg. NYC has more billionaires than any other US city, according to Forbes.
The cost of living is 41% above the state average and 77% higher than the national average. The average price of a Manhattan condominium went for just over $1.2 million in 2023, according to Douglas Elliman Real Estate. The median household income in NYC is $81,600, as of 2023. However, cozier living in upscale neighborhoods typically requires a good bit more.
San Francisco, CA
San Francisco is a vibrant, iconic city famous for the Golden Gate Bridge, Alcatraz Island, and the lively Fisherman’s Wharf. Due to a white-hot tech scene and limited housing supply, its cost of living is 23% above the state level and 71% above the country as a whole.
According to the latest Zillow reports, the median home price is around $1.4 million. Neighborhoods like Pacific Heights and Nob Hill have luxury homes that readily surpass the $10 million mark. They offer breathtaking views and world-class amenities.
Los Angeles, CA
In the “City of Angels,” dreams do come true. Attractions include the Getty Center, Rodeo Drive, and Griffith Observatory. Plus, with its sun-kissed beaches and year-round fabulous weather, it’s no wonder everyone wants a piece of LA’s laid-back luxury lifestyle.
Luxury homes in Beverly Hills and Bel Air can exceed $10 million, while the average home price in the city is about $900,000. With a cost of living 8% higher than the state average and 50% higher than the national average, Los Angeles is a magnet for celebrities and affluent professionals.
Miami, FL
The Magic City impresses with its beautiful beaches, poppin’ nightlife, and cultural destinations like Little Havana and the Art Deco Historic District. Miami’s real estate market is sizzling hot! The average home price is around $500,000. In luxury areas like Miami Beach or Coral Gables, the prices easily soar into the millions.
Miami’s cost of living is 118.9% of the national average. It ranks 33 out of 273 cities across the US in terms of affordability. According to Zillow, opulent waterfront properties listed for over $10 million are not uncommon, especially in exclusive neighborhoods like Star Island. Its tropical climate makes it a year-round destination for the wealthy.
Boston, MA
Boston is known for high-quality educational institutions like Harvard and MIT, the historic Freedom Trail, and Fenway Park. However, its cost of living is 47% higher than the national average. Boston Housing Report found that the city’s average home price surpasses $800,000.
Property values can quickly soar into the millions in affluent neighborhoods like Beacon Hill and the Back Bay. Recent data from Zillow credits this bustling city’s property market to prestige, location, and top-tier amenities.
Washington D.C.
When you hear ‘Washington, D.C.,’ the first thing that comes to mind is a global political powerhouse. However, it’s a city teeming with world-class museums, historical landmarks, and lively neighborhoods. The average home price is around $650,000. For a slice of American history in neighborhoods like Georgetown and Dupont Circle, prepare to cough out a million.
The rental market is equally competitive, with average rents around $3,148 for a two-bedroom apartment. In order to maintain a comfortable lifestyle in the city, you need a median household income of about $85,000, according to the U.S. Census Bureau. Wealthy professionals, political elites, and international diplomats contribute to the high-income bracket, keeping the city’s luxury alive.
Chicago, IL
Zillow says the average price is about $310,000 for a single-family home, but that’s not even including what you and I like to call “the extras.” So, what will it be — a slice of the Gold Coast or a swanky spot in Lincoln Park? But it might come with a sticker price of over $1 million. It would be best to have an hourly wage of $47.38 or a $98,550 salary to live comfortably in the city.
Chicago’s rich cultural scene is unique. Jazz joints, blues bars, and the iconic Chicago Symphony Orchestra hit all the right notes. Thanks to its strategic location in the heart of America, Chicago also hosts Fortune 500 companies, including giants like Boeing and United Airlines.
Seattle, WA
Seattle’s points of interest include the Space Needle, Pike Place Market, and a robust tech scene. According to recent data from Zillow, the average home price in Seattle is a staggering $800,000, driven by the bustling tech industry and the presence of companies like Amazon and Microsoft.
Seattle’s cost of living is 24% higher than the state average and 45% higher than the national average. The median household income required to reside in this Pacific Northwest pearl is equally impressive, sitting at around $110,000 annually, according to the U.S. Census Bureau.
Honolulu, HI
Honolulu offers stunning beaches, the Pearl Harbor National Memorial, and a rich Polynesian culture. The city screams luxury with world-class resorts, high-end shopping at Ala Moana Center, and gastronomic adventures galore. Every day is an indulgence.
However, living the aloha life comes with a hefty price tag. The cost of living index is 188.4. With median household incomes needing to surpass typical levels to maintain comfort, Honolulu remains a dream for many and a reality for the elite.
San Diego, CA
This city moves to the beat of sun, surf, and stonking house prices. The average home price is around $700,000, but for a breathtaking oceanfront mansion or chic downtown penthouse, prepare to dig deeper into those pockets—properties in La Jolla or Del Mar regularly exceed $3 million!
Additionally, San Diego’s booming biotech and health sectors offer high earning potential to its residents. The U.S. Bureau of Labor Statistics notes that the metropolitan area enjoys a median household income of over $100,000, significantly higher than the national average. This robust economic landscape supports a society accustomed to sophistication and splendor.
San Jose, CA
San Jose perfectly fuses cutting-edge innovation with artistic charm, from the bustling bars of Santana Row to the interactive displays at The Tech Interactive Museum. The average home price in San Jose is eye-wateringly high, nearing $1.5 million as of 2023, a testament to its status at the epicenter of the tech industry.
With Apple, Google, and Facebook just a short commute away, demand remains high, so prices keep soaring. Those seeking luxury real estate will find it in neighborhoods like Willow Glen and Rose Garden, where properties often exceed the $2 million mark.
San Juan, Puerto Rico
Take a stroll through the enchanting, cobble-stoned streets of Old San Juan, a UNESCO World Heritage site, or relax on one of Condado Beach’s pristine white sand beaches. San Juan has an average home price of over $600,000. Properties in upscale neighborhoods like Ocean Park and Condado provide breathtaking ocean views, and luxury condominiums can easily top the million-dollar mark.
The upmarket demand reflects the island’s tropical allure and the appealing tax incentives offered under Acts 20 and 22. These incentives attract affluent mainland Americans looking to save significantly on federal income taxes, further pushing property values upward.
Santa Barbara, CA
The “American Riviera” flaunts its sun-kissed beaches, Mediterranean architecture, and lush vineyards. Santa Barbara’s real estate market is almost as glamorous as its sunsets. The average home price is over $1.5 million.
Its proximity to Los Angeles has also made it a go-to location for wealthy buyers chasing luxury and privacy. Exclusive neighborhoods like Montecito, home to celebrities such as Oprah Winfrey, boast sprawling estates hidden behind pristine gates and lush landscaping.
Stockton, CA
The city is close to the San Francisco Bay Area, offering easy access to bustling urban life and serene natural beauty. The average home price in Stockton has soared past $430,000, representing a significant increase in recent years.
Upscale neighborhoods like Brook Hollow and Morada Estates offer lavish homes with sprawling views catering to high-end buyers seeking exclusivity. Charming Victorian estates, sprawling ranch properties, and new upscale developments shape the city’s housing landscape.
Denver, CO
Denver has tons of cultural and entertainment options, including the Denver Art Museum, the bustling LoDo District, and a vibrant craft beer scene that has earned the city its nickname “The Napa Valley of Beer.” The average home price in the city is around $559,014, and that’s just for starters.
Prices can soar into the millions in upscale neighborhoods like Cherry Creek and LoHi. Denver’s housing demand is through the roof, as a consistent influx of new residents is drawn to its booming job market, especially in the tech and energy sectors.
Disclaimer – This list is solely the author’s opinion based on research and publicly available information.
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