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The cost of living in the USA varies from region to region and from city to city. However, the chief cosmopolitan centres – regardless of geographical location – are the most expensive places to live in the USA.
The cost of living in a major city can be 50 percent or more above the national average. To compensate, wages in these cities do tend to be higher, but they are often not in proportion to the cost of city living.
Some cities in the USA even rank among the most expensive cities in the world. According to the Mercer Cost of Living Survey for 2022, New York City is the 7th most expensive city in the world. Another 18 US cities also make an appearance in this survey of 227 cities worldwide.
On average, expenses are lower than in Western European countries. However, some expenses that expats may be unaccustomed to will also need to be considered.
Cost of accommodation in the USA
A large portion of the high cost of living in the USA is due to expensive accommodation prices, a burden that can be somewhat alleviated by living outside city centres. In rural and suburban communities, property prices are much lower. The cost of utilities should also be kept in mind. In many parts of the USA, heating and air conditioning are also widely used throughout the year. These costs can quickly add up.
Cost of transportation in the USA
Those living outside of major cities in the USA will have to invest in a reliable vehicle for getting around. Luckily, gas (petrol) tends to be much cheaper than in Europe, but expats will need to bear in mind that consumption is also likely to be higher. The lower gas prices also translate into more affordable public transport services for commuters.
Cost of healthcare in the USA
Although the healthcare facilities in the USA are some of the world's best, the costs are quite steep. For this reason, comprehensive health insurance is essential. Expats relocating to the USA for work should find out whether this is included in their benefits.
Cost of education in the USA
The quality of public education in the USA varies widely. While public schools are free to attend, the best ones are often in expensive neighbourhoods due to the fact that schools are partly funded by property taxes. In turn, since schooling is zone-based, a good school will tend to push up housing costs in the surrounding area as well. Still, the absence of school fees helps to balance this out.
Expats who would prefer to send their child to a private or international school will have to bear high fees as well as additional expenses in the form of uniforms, stationery, textbooks and more.
Cost of living in the USA chart
Prices may vary depending on product and service provider. The list below shows average prices for Washington, DC in February 2023.
Accommodation (monthly) |
|
One-bedroom apartment in city centre |
USD 2,360 |
One-bedroom apartment outside of city centre |
USD 1,880 |
Three-bedroom apartment in city centre |
USD 4,900 |
Three-bedroom apartment outside of city centre |
USD 3,230 |
Shopping |
|
Eggs (dozen) |
USD 3.98 |
Milk (1 litre) |
USD 1.02 |
Rice (1kg) |
USD 4.40 |
Loaf of white bread |
USD 3.21 |
Chicken breasts (1kg) |
USD 11.80 |
Pack of cigarettes (Marlboro) |
USD 11 |
Eating out |
|
Big Mac Meal |
USD 10 |
Coca-Cola (330ml) |
USD 2.42 |
Cappuccino |
USD 5 |
Bottle of beer (local) |
USD 7.25 |
Three-course meal for two at a mid-range restaurant |
USD 88 |
Utilities/household |
|
Mobile call rate (per minute – mobile to mobile) |
USD 0.18 |
Internet (uncapped ADSL or cable – average per month) |
USD 58 |
Basic monthly utilities (includes electricity, water and refuse) |
USD 154 |
Transportation |
|
Taxi rate per km |
USD 1.34 |
Bus fare in the city centre |
USD 2.75 |
Gasoline/petrol (per litre) |
USD 0.99 |
Further reading
►To learn more about managing money, have a look at Banking, Money and Taxes in the USA
Expat Experiences
"Gas is cheap – both for your car and for your heating. Designer clothes, bags, shoes, kids' clothes and convenience foods – all cheap. Electricity (AC all summer!) and fresh fruit and vegetables are more expensive."
For more about Irish expat Las's life in Houston, Texas check out her interview with Expat Arrivals."The cost of living has become higher as housing has become more expensive and wages have staggered. As a French citizen, I find education and childcare to be particularly expensive as well as grocery shopping and healthcare. Nothing appears to be really cheap here, but I guess it all depends where you come from."
You can read more about Emmanuelle's experiences in Miami in her interview with Expat Arrivals
Are you an expat living in The USA?
Expat Arrivals is looking for locals to contribute to this guide, and answer forum questions from others planning their move to The USA. Please contact us if you'd like to contribute.
Expat Health Insurance
Cigna Global
If you’re thinking about taking out private health insurance, our trusted partner Cigna Global is very aware of all the difficulties that expats can face when it comes to healthcare in a new location, so they have created a range of international health insurance plans specifically designed for expats, which you can tailor exactly to the needs and ensure access to quality care for you and your family.
Moving Companies
Moving Internationally?
Sirelo has a network of more than 500 international removal companies that can move your furniture and possessions to your new home. By filling in a form, you’ll get up to 5 quotes from recommended movers. This service is free of charge and will help you select an international moving company that suits your needs and budget.