Cost of Living in the USA

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The cost of living in the USA varies widely from region to region and city to city. If you’re eyeing the chief cosmopolitan centres, be prepared – they’re consistently the most expensive places to live in the USA, regardless of location.

The cost of living in a major city can be 50 percent or more above the national average. Salaries in these cities do tend to be higher, but they often don’t keep pace with the rising cost of city living.

Some cities in the USA rank among the most expensive cities in the world. According to the Mercer Cost of Living Survey for 2024, New York City is the 7th most expensive expat destination worldwide, with California’s Los Angeles and San Francisco ranking 10th and 13th, respectively. Another 16 US cities also make an appearance in this survey of 226 cities worldwide.

Cost of accommodation in the USA

The cost of accommodation in the USA is a significant factor in determining your overall living expenses. Living outside the hustle and bustle of city centres can help alleviate some costs. The suburbs and rural areas offer more affordable options, and suburban homes are still in demand due to their space and affordability.

Utilities are another major expense to keep in mind, especially in cities like Los Angeles and New York. Heating and air conditioning are commonly used throughout the year, and these costs can add up quickly.

Renting Accommodation and Utilities in the USA

Cost of transport in the USA

The cost of transport in the USA can vary greatly depending on where you live. If you are outside major cities, you will need to invest in a reliable vehicle to get from A to B. While gas tends to be cheaper than in Europe, your fuel consumption may be higher, especially if you’re commuting long distances.

Public transport quality varies widely between cities. New York City’s subway might be your best bet, although it’s not without its headaches – delays and overcrowding are common issues. Chicago’s transit system is generally reliable but faces some challenges. In contrast, Los Angeles is heavily car-reliant, although efforts are being made to expand its public transport network.

Vehicle insurance is another major consideration, with costs that can be steep, especially in cities like New York, where risks are higher. Maintenance costs also vary, but it’s wise to budget for regular upkeep throughout the year to keep your vehicle running smoothly.

Getting Around in the USA

Cost of groceries in the USA

The cost of groceries in the USA depends heavily on where you live. Prices for basic goods such as bread, milk, and fresh produce can be markedly different between urban centres and suburban or rural areas.

In urban areas like New York City and San Francisco, you can expect to pay significantly more due to higher operational costs for shops. Suburban areas tend to offer moderate prices thanks to larger store formats and increased competition. In contrast, rural areas might offer some bargains but also come with a few curveballs when it comes to availability, as some items may face higher costs due to transport challenges.

To save on your grocery bill, consider shopping at discount grocery chains like Aldi or Walmart, which offer competitive prices. Buying in bulk at shops like Costco can help you get more bang for your buck, although it does require an upfront membership fee.

Cost of entertainment and eating out in the USA

Entertainment and eating out in the USA can put a serious dent in your wallet, especially in major metropolitan areas. The cost of dining in high-end or even mid-range restaurants is well above the national average in cities like New York and San Francisco. Smaller towns may offer more affordable dining options.

In terms of entertainment, you will find a wide range of options, from concerts and theatres to outdoor festivals and museums. Some of these activities are free, but ticketed events can be pricey, particularly in big cities. To cut costs, keep your ear to the ground for free or low-cost community events like outdoor movies, local concerts, and festivals.

Cost of education in the USA

The cost of education in the USA depends largely on whether you choose public or private schooling. Public education is free, but the quality varies widely.

Due to the fact that public schools are funded through property taxes, the best public schools are often located in expensive neighbourhoods. And since school attendance is based on zoning, this in turn pushes up the cost of housing in areas with good schools. States like Texas and New York have higher property taxes and better-funded schools than in states with lower rates like Alabama or Hawaii.

Private and international schools, on the other hand, come at a steep price and include additional costs for uniforms, textbooks, and other supplies. Private schooling can be particularly costly in urban areas due to increased demand and living expenses.

To ensure your child receives the best education possible without breaking the bank, it may be worthwhile researching school districts and considering the balance between housing costs and school quality.

Education and Schools in the USA

Cost of healthcare in the USA

The cost of healthcare in the USA is notoriously high, even though the quality is among the best globally. This makes comprehensive health insurance absolutely essential. If you are relocating to the USA for work, check if health insurance is included in your employment benefits and understand the extent of the coverage provided. Health insurance premiums can be quite significant, especially for family coverage through employer-sponsored plans.

Healthcare availability also differs significantly between urban and rural areas. Urban areas tend to have better access to healthcare facilities. Rural areas often face an uphill battle when it comes to accessing healthcare, with fewer options and longer travel times, which can lead to higher healthcare costs for residents.

Expats moving to the USA are now facing stricter requirements for health insurance under US law, and many are encouraged to purchase private health plans that meet ACA standards for comprehensive coverage.

It is worth noting that even with insurance, out-of-pocket expenses can be significant, so being well-informed about what is covered will save you a nasty shock down the line.

Healthcare and Health Insurance in the USA