For millions of Americans, simply earning enough to stay afloat is becoming harder and harder as prices have surged over the past five years amid oil price shocks and persistent inflation.
Since 2021, the cost of renting, buying groceries, and purchasing many everyday items has climbed by about 25 percent nationwide, according to Statista’s latest cost-of-living analysis.
Surveys suggest the public is feeling that strain acutely: 54 percent of Americans say rising costs are their top concern, outweighing any other personal or political issue.
Still, the burden isn’t shared equally. In some parts of the country, soaring housing expenses are racing far ahead of what locals earn, turning once-attainable communities into places that are out of reach for many residents.
At the very top of the affordability rankings is Newport Beach, California. US News placed it first after comparing home values, rents, and median incomes across 859 U.S. cities.
The coastal enclave is known for its beaches and laid-back lifestyle, and it draws people looking for a scenic alternative to big-city living. That appeal comes at a steep cost: rents are about $1,300 a month higher than the national average of $1,487.
Even with a median household income around $162,000—about double the U.S. norm—buyers face home prices exceeding six times the national average. In other words, life there may look comfortable on paper, but housing can consume a huge chunk of what families bring in.
Following Newport Beach is Westminster in Orange County, another community that has attracted attention in recent years for its cultural offerings and proximity to the coast.
Unlike Newport Beach, however, Westminster’s typical earnings are closer to the national average, despite rents reaching a median of $2,058 per month in a city of roughly 90,000 residents.
Buying isn’t much easier: the median home value is $854,438, a figure that amounts to roughly 10 times what many locals earn.
Third on the list is Daly City, California. Some residents describe it as almost being a ‘bedroom community’ because many homeowners choose it as a base while commuting into the even pricier Bay Area.
That spillover has had consequences. As more workers priced out of San Francisco move in, demand has helped drive costs up for existing residents—an increasingly familiar pattern in communities across California.
The result is a higher-than-average household income of $123,332, but also steep housing costs, including average rent of $2,385 per month and average home prices rising to $1,117,275.
In fourth place is Spring Valley in Rockland County, New York—the only East Coast community to appear in the top six. Similar to Daly City, it’s been impacted by its appeal as a commuter-friendly option.
Rents there sit above the national average, though they are still far lower than the California cities on the list, at $1,607 per month.
Pay levels, though, don’t match those of the most expensive West Coast markets. The median household income in Spring Valley is $63,843—nearly a third of Newport Beach’s—while the average home is valued at $458,694.
Fifth is Huntington Park in Downtown Los Angeles, where incomes resemble Spring Valley’s: the typical household earns about $63,669.
Despite that, renters are paying around $1,407 per month, and buying a home costs about twice the national average, with typical properties priced at $629,137. This is despite the rundown area being named California’s ‘most miserable city’ in 2019.
Santa Cruz, California, ranks sixth, marking yet another Golden State city where residents face steep living costs. For many, the trade-off may feel worthwhile given the area’s energy and coastal setting.
Households in Santa Cruz earn roughly $114,270, but buying a typical home would cost about $1,274,512. Renters, meanwhile, pay around $2,044 per month.
At the other end of the spectrum, Decatur, Illinois, was highlighted as the best value for money. The average salary there is $51,955, typical rent is about $655 per month, and the average home costs $95,976.