The term “cost of living” encapsulates everything that humans need to live and survive. It includes essentials like housing, groceries, utilities and healthcare. But it also accounts for miscellaneous goods and services like getting a haircut or going out for entertainment.
As the cost of living in major metropolitan areas has gone up recently due to the pandemic and inflation, renters have been seeking more affordable options elsewhere. Many of these cities and areas have been seeing significant growth over the past year or so. But all that attention and growth is also fueling a rising cost of living. While these areas may have once been more affordable options, that’s fast-changing. These areas around America are where the cost of living has been increasing the most.
10 areas with the biggest increases in the cost of living
One of the interesting features of this list is that it’s not confined to a single region or part of the country. This list shows cost of living increases in small- to mid-sized cities everywhere from the East Coast to the Southwest.
Another interesting component is that while some of these areas are up-and-coming cities, others are established major urban centers. Eugene, OR, and Provo, UT, have been drawing more attention for their outdoor recreation, universities and cultural scenes. But areas like Chicago have long been destinations to find art, culture, dining, business and quality city life. So, the rising cost of living trends are not confined to a specific type of metropolitan area.
These areas top the chart for the biggest cost of living increases from Q1 in 2021 to Q1 in 2022.
10. Texarkana, TX–AR
Straddling the eastern border between Texas and Arkansas, the city of Texarkana comes in with the least cost of living growth in the top 10. Since 2021, the general cost of living has only gone up 7.5 percent to 88.8 percent. This puts it nearly 13 percent lower than the national average. As major Texas metropolises like Houston and Dallas get more expensive, smaller towns like Texarkana are drawing new residents with lower rents and cost of living.
Some costs have even gone down since 2021. Both groceries and healthcare decreased by 0.32 percent and 2.94 percent, respectively. But transportation costs increased a whopping 21.34 percent.
While being a small city, Texarkana’s big claim to fame is that its post office and courthouse are on the state line between Texas and Arkansas. It’s also close to Louisiana and Oklahoma. Alongside the affordable cost of living, locals enjoy outdoor activities like fishing on Lake Millwood.
9. Manchester, NH
Living in the mid-sized city of Manchester, the general cost of living is 17.4 percent over the national average. This is a jump of 8.1 percent from the previous year, from an index of 108.6 in 2021 to 117.4 in 2022.
Thanks to its thriving arts and culture scene, numerous colleges and good quality of life, Manchester is one of the best places to live in New Hampshire. But with that popularity comes an increased cost of living.
8. Provo-Orem, UT
The Provo-Orem metropolitan area in north-central Utah encompasses the neighboring cities of Provo and Orem. At 106.6, the cost of living index here is only 6 percent over the national average. But it’s jumped 8.8 percent since 2021.
The cost of living has increased nearly across the board. At a 14.9 percent increase, housing costs have jumped the most. Transportation and miscellaneous goods and services are also up. The only decrease was in healthcare at a 2.2 percent decrease.
There are several reasons for the sudden jump. Nearby Salt Lake City is still one of the most affordable cities in the area. But prices are going up there, too. So, residents have been moving south en-masse to Provo and Orem, driving up demand and prices. On top of the good cost of living, Provo and Orem’s benefits include good colleges, stellar economy, bustling arts and culture and access to outdoor activities like skiing at Sundance. The area is one of the best places to live in Utah.
7. Boise, ID
Between 2021 and 2022, Boise has seen a 9.8 percent increase in the cost of living expenses. Housing and transportation are the areas seeing the biggest increases. Housing has jumped 20 percent, followed by transportation at 13.4 percent. Utilities have decreased slightly by 1.5 percent.
Boise’s cost of living is 8.7 percent higher than the national average. Housing is 26.6 percent over the national average, and transportation is 11.9 percent higher. You can find groceries slightly more affordably at 3 percent lower than the national average.
Boise has been very much in the headlines lately for being the hot new place for millennials to move. This fast growth contributes to the rising cost of housing and other costs of living expenses. With a robust tech scene, music, art, culture and good quality of life, it’s easy to see why Boise is the new, hip place to live. Locals also enjoy plenty of access to nature, both outside the city and within the city in the parks and trails of the Boise River Greenbelt.
6. Salt Lake City, UT
At 110.5, the overall cost of living index in Utah’s capital city is 10.5 percent higher than the national average. This is a jump of 9.9 percent from 2021.
Nearly across the board, the increases in the cost of living categories like groceries, transportation or utilities have been minor. Transportation has a slight bump of 2.5 percent, groceries grew 4.8 percent and utilities landed at 2.6 percent. Housing is the major exception, leaping 23.3 percent.
Leaving more expensive coastal cities and states, lots of residents love Salt Lake City’s quality of life, safety, strong economy and beautiful nature. The nearby mountains offer great skiing, and the Great Salt Lake itself is a popular spot for swimming and other water sports. As the seat of the Church of Latter-Day Saints, the city also offers a lot of interesting history and culture.
5. Bozeman, MT
With its great access to nature, abundant outdoor sports and small city atmosphere, Bozeman has exploded in popularity over the past few years. People move there to spend time outdoors hiking in the Rocky Mountains or fly fishing on area rivers and lakes. Lots of young people come here to study at Montana State University. But all the popularity also means the cost of living is rising sharply.
Between 2021 and 2022, the overall cost of living in Bozeman saw an 11.4 percent increase. It’s 22 percent higher than the national average. Housing saw the biggest jump at 13.2 percent. But surprisingly, of all the cities in the top 10, that number is the lowest for housing increases.
Groceries, transportation, healthcare and miscellaneous goods and services all saw increases, as well. The cost of miscellaneous activities jumped 14.7 percent. The only decrease was in utilities, dropping a slight 1.7 percent.
4. Chicago, IL
The Windy City is also blowing a lot more money out of its residents’ pockets with its cost of living increases over the past year. Since 2021, the overall cost of living in Illinois’ most populous city has climbed 30.5 percent. Currently, Chicagoans can expect to shell out 26.4 percent more for the cost of living expenses against the national average.
Located on the shores of Lake Michigan, Chicago’s excellent museums, lakefront parks, skyscrapers and grand historic architecture have turned it into one of America’s most iconic big cities. It has also given the world its famous deep-dish pizza. From cheering on the Cubs to immersing yourself in the local art scene, there’s always something fun to do around town.
Of the cost of living increases, housing has jumped the most. The cost of housing around Chicago has jumped a painful 76.6 percent. Utilities, transportation and healthcare had pretty even increases of around 11 percent and groceries only increased 0.9 percent.
3. Bethesda, MD
Bordering Washington, D.C., the small city of Bethesda is the hip next-door neighbor to our nation’s capital. From nightlife to dining to shopping, the urban center bustles with activity. Nearby parks and green areas like Rock Creek offer hiking and outdoor activities close to town.
Being a popular suburb of Washington, D.C., has its drawbacks, though. The cost of living here has jumped significantly over the past year. The general cost of living is 46.1 percent higher than the national average. This is the highest rate for the overall cost of living of all the cities in the top 10 for 2022. It’s also a 36.1 percent increase from 2021.
Similar to most of the other cities on this list, the biggest cost of living increase is in housing. Housing around Bethesda has jumped a painful 96.4 percent. Groceries have increased 7.1 percent, followed by 6.5 percent increases in healthcare. All other costs of living areas saw small increases, as well.
2. Eugene, OR
Home to the University of Oregon, Eugene, and its neighboring city of Springfield, is among the fastest-growing cities in Oregon. The local student population helps fuel arts and culture around town, making it one of Oregon’s best college towns. Located at the southern end of the Willamette Valley, Eugene is close to Oregon’s famed wine region. Both the Oregon Coast and the Cascade Mountains are within driving distance for outdoor fun. Due to Eugene’s increasing popularity, the cost of living is going up sharply.
Eugene holds the dubious honor of having the biggest housing increase of the top 10 cities. From 2021 to 2022, housing has skyrocketed 125.4 percent.
The overall cost of living is 22.9 percent higher than the national average. It’s a 41.9 percent jump from 2021. Other costs of living areas have seen significant jumps, as well. Transportation costs are up 67.8 percent, groceries are 14.5 percent more expensive and utilities have also jumped 28.28 percent. On the other hand, healthcare has dropped 2.7 percent.
1. Lake Havasu City, AZ
The small city of Lake Havasu City in western Arizona tops the list for the biggest cost of living increase over the past year. Since 2021, the overall cost of living in this sunny desert city has jumped 46.4 percent. Living here is currently 33.1 percent higher than the national average.
Housing saw the biggest increase at 93.3 percent, followed by miscellaneous goods and services at 37 percent. The cost of groceries has also gone up 26.3 percent. Only transportation costs have decreased, by 5.5 percent.
Situated next to its namesake Lake Havasu, spending time outdoors is the name of the game here. Residents love doing water sports out on the lake, as well as hiking and fishing. Good weather, quality of life and safety are other benefits. Many people have been moving there for the low cost of living, but clearly, that’s shifting the local economy and driving up costs significantly.
The top 50 areas where the cost of living has increased the most
These 10 areas aren’t alone in seeing the cost of living increase. See where else the cost of living is rising on this list.
| Rank | Metro/Micro Area | State | Composite Index YoY Change | Grocery Index YoY Change | Housing Index YoY Change | Utilities Index YoY Change | Transportation Index YoY Change | Healthcare Index YoY Change | Misc. Goods & Services Index YoY Change |
|---|---|---|---|---|---|---|---|---|---|
| 1 | Lake Havasu City-Kingman AZ Metro | Arizona | 46.42% | 26.36% | 93.34% | 1.24% | -5.52% | 2.52% | 37.05% |
| 2 | Eugene-Springfield OR Metro | Oregon | 41.92% | 14.59% | 125.43% | 28.28% | 67.84% | -2.76% | 10.91% |
| 3 | Washington-Arlington-Alexandria DC-VA-MD-WV Metro Div. | Maryland | 36.16% | 7.12% | 96.40% | 1.88% | 1.72% | 6.53% | 5.29% |
| 4 | Chicago-Naperville-Elgin IL-IN-WI Metro Div. | Illinois | 30.58% | 0.68% | 76.76% | 11.16% | 11.14% | 11.93% | 24.36% |
| 5 | Bozeman MT Micro | Montana | 11.42% | 8.18% | 13.24% | -1.71% | 1.74% | 4.30% | 14.72% |
| 6 | Salt Lake City UT Metro | Utah | 9.95% | 4.83% | 23.34% | 2.65% | 2.52% | -1.57% | 4.74% |
| 7 | Boise City ID Metro | Idaho | 9.80% | 6.22% | 20.00% | -1.57% | 13.49% | 0.49% | 5.25% |
| 8 | Provo-Orem UT Metro | Utah | 8.89% | 1.42% | 14.09% | 2.77% | 9.20% | -2.24% | 10.90% |
| 9 | Manchester-Nashua NH Metro | New Hampshire | 8.10% | 9.43% | 2.36% | 0.95% | 4.32% | 9.44% | 16.97% |
| 10 | Texarkana TX-AR Metro | Texas | 7.51% | -0.32% | 3.98% | 7.65% | 21.34% | -2.94% | 15.11% |
| 11 | Springfield IL Metro | Illinois | 7.45% | 11.40% | 18.05% | -0.10% | 6.69% | 19.65% | -0.79% |
| 12 | Las Cruces NM Metro | New Mexico | 6.66% | 13.91% | 8.36% | 5.58% | -5.46% | 6.14% | 7.90% |
| 13 | Bakersfield CA Metro | California | 6.63% | 9.33% | 23.01% | -4.76% | -10.95% | 1.39% | 3.91% |
| 14 | Stockton CA Metro | California | 6.18% | 23.87% | 4.25% | -3.53% | 0.82% | 6.23% | 2.72% |
| 15 | Kokomo IN Metro | Indiana | 6.08% | 8.10% | 4.24% | 9.86% | 2.47% | 3.10% | 8.08% |
| 16 | Phoenix-Mesa-Chandler AZ Metro | Arizona | 5.95% | 2.70% | 12.74% | -4.63% | 0.00% | 9.41% | 6.02% |
| 17 | Washington-Arlington-Alexandria DC-VA-MD-WV Metro Div. | Virginia | 5.75% | -1.24% | -3.52% | 4.72% | 51.16% | -1.94% | 9.43% |
| 18 | Albuquerque NM Metro | New Mexico | 5.70% | -0.91% | 8.48% | -1.60% | 6.88% | 2.92% | 8.10% |
| 19 | Durham-Chapel Hill NC Metro | North Carolina | 5.42% | -5.18% | 38.85% | -5.97% | -6.02% | 5.15% | -9.58% |
| 20 | Ogden-Clearfield UT Metro | Utah | 5.39% | 4.94% | 11.11% | 3.01% | -1.69% | -3.74% | 5.65% |
| 21 | Orlando-Kissimmee-Sanford FL Metro | Florida | 5.19% | -0.48% | 14.79% | -1.45% | 5.13% | 0.71% | 2.21% |
| 22 | Fayetteville-Springdale-Rogers AR Metro | Arkansas | 5.04% | -4.11% | 3.77% | 3.91% | 3.12% | -4.20% | 15.32% |
| 23 | Anchorage AK Metro | Alaska | 4.41% | 0.56% | 4.12% | -9.74% | 9.36% | 2.47% | 8.54% |
| 24 | Mount Vernon-Anacortes WA Metro | Washington | 4.40% | -1.18% | 9.97% | -1.39% | -3.52% | 1.75% | 4.15% |
| 25 | Olympia-Lacey-Tumwater WA Metro | Washington | 4.33% | -1.59% | 17.33% | 0.75% | -6.62% | 2.10% | 2.01% |
| 26 | Roanoke VA Metro | Virginia | 4.32% | 2.11% | 2.99% | 7.42% | 8.21% | -0.30% | 6.96% |
| 27 | Tyler TX Metro | Texas | 4.29% | 0.11% | 12.27% | 0.38% | 7.18% | 4.41% | 1.81% |
| 28 | Miami-Miami Beach-Kendall FL Metro Div. | Florida | 4.15% | -0.81% | 0.94% | 4.42% | 9.73% | -5.56% | 6.42% |
| 29 | Manhattan KS Metro | Kansas | 3.78% | 8.63% | -1.96% | -3.22% | 0.86% | 9.42% | 10.14% |
| 30 | Hot Springs AR Metro | Arkansas | 3.73% | 7.58% | 11.61% | 5.32% | 6.11% | -7.27% | -0.38% |
| 31 | Cedar City UT Micro | Utah | 3.70% | 3.38% | 7.17% | 0.00% | 3.79% | -2.51% | 4.15% |
| 32 | Jackson TN Metro | Tennessee | 3.69% | 7.12% | 5.07% | -1.75% | 2.12% | 5.30% | 4.32% |
| 33 | Los Angeles-Long Beach-Glendale CA Metro Div. | California | 3.62% | 0.98% | 3.77% | 1.20% | -5.19% | 4.45% | -0.86% |
| 34 | Cincinnati OH-KY-IN Metro | Ohio | 3.55% | 11.35% | 2.00% | 6.36% | 2.31% | 3.27% | 3.98% |
| 35 | Jonesboro AR Metro | Arkansas | 3.48% | -0.65% | 5.11% | 8.05% | 6.11% | -8.28% | 7.38% |
| 36 | Mason City IA Micro | Iowa | 3.47% | 4.09% | 4.68% | 2.34% | 8.79% | 0.80% | 4.12% |
| 37 | Dayton-Kettering OH Metro | Ohio | 3.45% | 9.43% | 13.49% | 0.94% | -5.11% | 5.63% | -0.69% |
| 38 | Beaumont-Port Arthur TX Metro | Texas | 3.41% | 11.61% | 1.33% | -0.10% | 2.80% | -6.14% | 3.49% |
| 39 | Rockford IL Metro | Illinois | 2.98% | 3.84% | -2.77% | -4.00% | 16.68% | 23.63% | 5.19% |
| 40 | Phoenix-Mesa-Chandler AZ Metro | Arizona | 2.96% | 4.17% | 1.24% | -3.49% | 6.08% | 12.71% | 2.34% |
| 41 | Shreveport-Bossier City LA Metro | Louisiana | 2.82% | 0.61% | -6.54% | 0.23% | 10.01% | 12.12% | 11.43% |
| 42 | Wilmington DE-MD-NJ Metro Div. | Delaware | 2.75% | -2.65% | 18.86% | -14.67% | 1.35% | 23.14% | -2.46% |
| 43 | Urban Honolulu HI Metro | Hawaii | 2.72% | -3.29% | 2.43% | -14.54% | -11.98% | 6.95% | 0.71% |
| 44 | Pittsburg KS Micro | Kansas | 2.67% | 4.23% | 2.03% | -2.22% | 13.83% | 0.21% | 3.73% |
| 45 | Washington-Arlington-Alexandria DC-VA-MD-WV Metro Div. | District of Columbia | 2.65% | -1.51% | 1.20% | 2.78% | 1.00% | 7.77% | -3.27% |
| 46 | Burlington IA-IL Micro | Iowa | 2.60% | 1.91% | -8.75% | 2.34% | 2.47% | -6.38% | 14.84% |
| 47 | Anaheim-Santa Ana-Irvine CA Metro Div. | California | 2.52% | 2.78% | 0.32% | 0.65% | -6.45% | -0.19% | 0.09% |
| 48 | Tampa-St. Petersburg-Clearwater FL Metro | Florida | 2.39% | -1.88% | 10.48% | 0.10% | -6.72% | -3.07% | 2.36% |
| 49 | Lynchburg VA Metro | Virginia | 2.29% | 6.61% | -2.71% | 9.26% | 14.75% | 2.65% | 0.75% |
| 50 | Deltona-Daytona Beach-Ormond Beach FL Metro | Florida | 2.03% | -6.19% | 10.19% | 4.28% | -7.67% | 4.61% | 1.36% |
The cost of living is increasing across the nation
As renters leave more expensive cities, it drives up the cost of living in the areas they flock to. Although the cost of living is going up in cities and areas around the country, there’s no cause for panic. Renters can still find plenty of areas where the cost of living is going down, like these areas where the cost of living is decreasing the most.
Methodology
Cost of living changes are determined by comparing the Q1 2022 and Q1 2021 Cost of Living Index from coli.org.
The information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.
