Surveys consistently show that one of consumers’ biggest concerns is the cost of living, particularly when it comes to housing costs. But these costs vary, depending on where you live.
A new study by doxo revealed the cost of living based on the amount spent on household bills in the 50 largest cities in the nation, based on the number of households. The study, which reflects actual bill payment activity across more than 97% of U.S. zip codes, reveals the most and least expensive largest cities for Americans to reside based on average spend per month on bill payments.
While the average U.S. household spends $25,513 annually on bills, 34% of the U.S. household median income of $74,755 and roughly $2,126 per month, many cities rank well above or below this figure.
San Jose, New York, Boston, San Francisco, and San Diego top the list as the most expensive, while Rochester, El Paso, Dayton, Cleveland and Detroit are the most affordable.
“With the unparalleled transparency we offer through doxoINSIGHTS, consumers, businesses, and financial institutions have access to the most comprehensive data on real household spending for everyday bills,” said Liz Powell, senior director of INSIGHTS at doxo.
“With a clear perspective into how much Americans are spending on household bills, depending on where they live, and the ability to compare to other cities across the nation, consumers have the insights needed to strengthen their financial well-being. At the same time, this data empowers billers and financial institutions to better understand and meet consumer needs as the economy remains center stage.”
The findings outlined in the Largest 50 U.S. Cities Market Household Spend Report 2024 include the total monthly spending for bills each month, the Cost of Bills Index (COBI), the percentage of income these bills amount to, how these bills compare to the national average.
10 most common household bills
The 10 most common household bills include mortgage; rent; auto loan; utilities; auto Insurance; cable, internet and phone; health insurance; mobile phone; alarm and security; and life insurance.
A high-level look at the 10 most and least expensive cities among the 50 largest U.S. cities is outlined below.
10 Most Expensive Largest U.S. Cities for Household Bills:
City | Monthly Bill Expense Per Household* | Cost of Bills Index (COBI)** | Percent of Household Income | Percent Above National Average |
San Jose | $3,695 | 174 | 32% | +74% |
New York | $3,639 | 171 | 38% | +71% |
Boston | $3,410 | 160 | 41% | +60% |
San Francisco | $3,359 | 158 | 29% | +58% |
San Diego | $3,324 | 156 | 39% | +56% |
Los Angeles | $3,113 | 146 | 51% | +46% |
Seattle | $3,049 | 143 | 33% | +43% |
Washington, DC | $2,991 | 141 | 34% | +41% |
Miami | $2,867 | 135 | 49% | +35% |
Portland | $2,758 | 130 | 36% | +30% |
10 Least Expensive Largest U.S. Cities for Household Bills:
City | Monthly Bill Expense Per Household* | Cost of Bills Index (COBI)** | Percent of Household Income | Percent Below National Average |
Indianapolis | $1,976 | 93 | 38% | -7% |
Louisville | $1,936 | 91 | 34% | -9% |
Memphis | $1,912 | 90 | 43% | -10% |
Albuquerque | $1,907 | 90 | 36% | -10% |
Oklahoma City | $1,896 | 89 | 38% | -11% |
Rochester | $1,858 | 87 | 35% | -13% |
El Paso | $1,784 | 84 | 38% | -16% |
Dayton | $1,773 | 83 | 32% | -17% |
Cleveland | $1,735 | 82 | 41% | -18% |
Detroit | $1,640 | 77 | 53% | -23% |