How much does it cost to live in major US cities and where to move to save money

With the cost of living rising, many Americans are looking for the most affordable cities to live in the US. Online bill payment platform Doxo has released its annual “50 Household Spending Report for the 2024 Largest US Cities.” It shows which cities are the most affordable to live in and which are the most expensive, writes Forbes.

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Doxo’s report is based on actual bill-paying data. It details the average monthly costs of 10 major household bills, including rent, utilities, and insurance. It also presents the Cost of Bills Index (COBI), which compares cities to the national average.

The average American household spends $2126 per month on essential bills. That’s 34% of their income on essential bills, up 4% in 2023 as inflation continues to weigh on American consumers. However, these costs vary widely by location.

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Detroit, Michigan, is the most affordable city this year for the third year in a row. The average monthly household cost is $1640, 23 percent below the national average. Two other Ohio cities, Cleveland and Dayton, follow.

It should be noted, however, that while the cost of living in Detroit is low, utility bills account for 53% of household income. (The median income in the city is $37 per year.) Despite rising inflation, average monthly expenses in Detroit also remain relatively stable.

The most expensive city was San Jose, California, which is located in the heart of Silicon Valley. Here, residents pay an average of $3695 per month for utilities: a whopping 74% more than the national average.

This year, New York City was the second most expensive city, followed by Boston and San Francisco. These four cities have topped the list of expensive places to live for three years in a row.

In terms of trends, the cheapest places to live are in Midwestern cities. Meanwhile, California cities dominate the list of the most expensive places to live. For example, in Los Angeles, household expenses account for 51%.

The Most Affordable Cities to Live in the US

Detroit, MI - $1640/month (23% below national average)

Cleveland, Ohio - $1735/month (18% below national average)

Dayton, Ohio – $1773/month (17% below national average)

El Paso, TX – $1784/month (16% below national average)

Rochester, NY – $1858/month (13% below national average)

Oklahoma City, OK – $1896/month (11% below national average)

Albuquerque, New Mexico - $1907/month (10% below national average)

Memphis, Tennessee - $1912/month (10% below national average)

Louisville, Kentucky - $1936/month (9% below national average)

Indianapolis, IN - $1976/month (7% below national average)

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The Most Expensive Cities in the USA

San Jose, California – $3695/month (74% above national average)

New York City - $3639/month (71% above national average)

Boston, MA – $3410/month (60% above national average)

San Francisco, California - $3359/month (58% above national average)

San Diego, California – $3324/month (56% above national average)

Los Angeles, California – $3113/month (46% above national average)

Seattle, Washington – $3049/month (43% above national average)

Washington, D.C. - $2991/month (41% above national average)

Miami, FL – $2867/month (35% above national average)

Portland, Oregon – $2758/month (30% above national average)

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