10 Cities Where You Overpay for Everything — and One Way To Save Big in Each

The cost of living in the U.S. continues to soar. It has become so expensive that some are flocking abroad to set up a more affordable life for their retirement.

That may sound like a drastic move (literally), but it’s unsurprising when you consider just how expensive some of the country’s cities can be. 

Here’s a look at 10 of the most expensive cities in the U.S., where you’re forced to overpay for everything. We’ll also look at the biggest way to save in each of these locations.

Of course, in addition to the key savings opportunities we highlight, you also should employ meticulous budgeting, paying down high-interest credit card debt and do all of the other things to trim costs and get yourself in a financially safe and healthy place. 

Also see the most expensive cities to buy a home.

Cost of living: The cost of living here is 21% higher than the national average, according to Payscale.

In glamorous Miami, you can enjoy the beach 24/7 and indulge in some top-notch nightlife activities — but it all comes at a steep cost. According to Payscale, one of the costliest categories of life in Miami is groceries, which are 20% higher than the national average. One way to save here is to buy your groceries with a cash-back rewards card.

Cost of living: The cost of living here is 38% above the national average, according to Salary.com. 

Accessing the charms of Santa Rosa as a resident requires a hefty chunk of change. Energy is a major expense here — 34.3% higher than the national average, according to Salary.com. To save on this aspect, implement energy saving tactics such as using electricity during off-peak hours and locking in a fixed rate contract with your energy provider so you don’t have to ride the ups and downs of the market.

Cost of living: The cost of living here is 44% higher than the national average, according to RentCafe.

In sunny San Diego, it’s pretty pricey to get by. The housing factor is particularly steep, with costs being 123% higher than the national average, according to RentCafe. Opening up to the possibilities of living with a roommate can be a huge cost saver, as can relying on public transportation.  

Cost of living: The cost of living here is 48% higher than the national average, according to Salary.com. 

There’s a reason Prince Harry and Meghan Markle chose Santa Barbara as their U.S. home base. It’s a gorgeous oceanside city. But it’s royally expensive. The cost of energy is 40.8% higher than the national average, according to Salary.com, so once again, you’ll want to be super conscious of the times and amounts of usage and practice energy-saving behaviors.

Cost of living: The cost of living here is 50% higher than the national average, according to Payscale. 

Known as the Cradle of Liberty, Boston might also be perceived as the cradle of outrageous pricing. Housing makes up the bulk of the steep prices here, as, according to Payscale, renting or buying here is 124% higher than the national average. Finding more affordable housing is key to saving here: Consider shopping for homes during the offseason, and be open to living with roommates.  

Cost of living: The cost of living here is 51% higher than the national average, according to Salary.com.

Salinas, known as the Salad Bowl of the World because of its agricultural wonders, is far from cheap. One area in which this city shocks in costs, is food, which is 26.8% higher than the national average, according to Salary.com. Take advantage of the city’s locally sourced foods and ample farmer markets to save. 

Cost of living: The cost of living here is51% higher than the national average, according to RentCafe. 

In the City of Angels, housing is the biggest expense: 140% higher than the national average, according to RentCafe. As with other high-priced locations, it makes sense to consider dwelling just outside the bounds of L.A. You might consider Simi Valley or Santa Clarita, for example, as these areas often sport more space for less. 

Cost of living: The cost of living here is 79% higher than the national average, according to RentCafe.

San Francisco is well known as an exorbitantly expensive city. Costs are especially high in the area of housing — weighing in at 207% higher than the national average. One way to save that admittedly may not be the most comfortable is to get a very small studio apartment. But even that may not make enough of a dent. In 2019, ABC News profiled a woman who lived in a closet in San Francisco for $1,200 a month.

Cost of living: The cost of living here is 80% higher than the national average, according to RentCafe.

The Big Apple is one expensive fruit, if you will. According to RentCafe, housing (both buying and renting) is the most expensive aspect of life in NYC; it’s 230% higher than the national average. Perhaps the most effective way to save money in this city is to embrace the furthest of the outer boroughs, such as Staten Island and the Bronx.

Cost of living: The cost of living here is 84% higher than the national average, according to Payscale. 

In Honolulu, housing is far and away the greatest expense. According to Payscale, housing is 214% higher than the national average. To save on housing-related costs, some recommend not relocating there if you have pets, as that can be an added renter’s expense and it dramatically reduces your housing options. You also might want to consider living here for only part of the year.