October 18, 2005
Manhattan is the most expensive place to live in America, according to the latest analysis by Runzheimer International, the Wisconsin-based management consulting firm. The study considered what a typical family of four with a combined annual income of $60,000 spends on average, and compares costs associated with maintaining a similar lifestyle in more than 300 locations across the nation.
At an annual cost of $146,060, Manhattan homeowners pay 137.9% more than the national average. And it costs $12,173 more a year to live in Manhattan than to live similarly in San Francisco, according to Runzheimer. The difference between the second and third locations, San Francisco and Los Angeles, is $16,161 (see Table 1).
Housing costs ranged from approximately 59% to 69% of total living costs in the top five locations (see Table 2). “Since housing costs make up the largest part of total living costs, special attention must be given to all housing cost components in order to accurately assess the cost of living in a location,” said Brian Van de Water, Vice President of Global Mobility Services at Runzheimer International. “Housing costs also impact other living cost components, so analysis accounts for the impact of mortgage interest and real estate tax amounts on federal income taxes, and in many instances, state income taxes.”
When examining real estate taxes in Runzheimer’s five highest-ranked locations, San Francisco residents pay the most at $13,512 annually (see Table 3). Manhattan real estate taxes for a newly-purchased home is $12,504 annually. Los Angeles, San Jose, and Washington, D.C. residents’ real estate tax obligations range from $10,857 to $5,929 per year.
Table 1: Most Expensive Places to Live*
City |
Annual Cost |
Index |
Manhattan |
$146,060 |
237.9 |
San Francisco |
$133,887 |
218.1 |
Los Angeles |
$117,726 |
191.8 |
San Jose |
$108,506 |
176.8 |
Washington, D.C. |
$102,589 |
167.1 |
|
Table 2: Housing Costs as a Percent of Total Living Costs*
City |
Annual Housing Cost |
% of Total Annual Living Cost |
Manhattan |
$100,532 |
68.83% |
San Francisco |
$91,099 |
68.04% |
Los Angeles |
$75,898 |
64.47% |
San Jose |
$67,059 |
61.80% |
Washington, D.C. |
$60,583 |
59.05% |
|
Table 3: Real Estate Taxes in Selected Locations*
City |
Annual Real Estate Taxes |
% of Home Market Value |
Manhattan |
$12,504 |
0.887% |
San Francisco |
$13,512 |
1.137% |
Los Angeles |
$10,857 |
1.108% |
San Jose |
$9,857 |
1.132% |
Washington, D.C. |
$5,929 |
0.704% |
|
*Living costs include income taxes, costs associated with owning two vehicles (except in Manhattan where owning two vehicles is less common), public commutation costs where appropriate (San Francisco and Manhattan), goods and services, sales tax, miscellaneous expenses and housing costs. Housing costs assume a 2,500 sq. foot house (1,200 sq. foot condo in Manhattan) in selected living communities where a $60,000 annual income, family of four would typically live and include mortgage (principal and interest), insurance, real estate tax, utilities and maintenance costs.
City |
Representative Living Communities |
Manhattan |
Manhattan |
San Francisco |
San Francisco Central W, San Francisco SW |
Los Angeles |
Burbank, Glendale, Sherman Oaks Neighborhood |
San Jose |
Campbell, San Jose, Sunnyvale |
Washington, D.C. |
American University, Cleveland Park, Palisades |
About Runzheimer International
Founded in 1933, Runzheimer International serves 60 percent of the Fortune 500. Recognized for providing innovative solutions relating to employee mobility, Runzheimer is a global leader in living cost information used in employee relocation and compensation, nontaxable business vehicle reimbursement programs, and travel management consulting.
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For more information, contact Luella Dooley at Runzheimer International, Runzheimer Park, Rochester, Wisconsin 53167, 262-971-2271, ljd@runzheimer.com, www.runzheimer.com.
