A new analysis of U.S. urban affordability reveals that several of the nation’s largest metropolitan areas are experiencing some of the fastest increases in the cost of living, underscoring deepening economic pressures on residents even as wages lag behind expenses. The findings show that rising housing costs, inflation and everyday living expenses are converging to stretch household budgets in key cities across the country.
The Plasma report, which examined affordability data for the 30 most populous U.S. cities, combined metrics such as rental prices, grocery and utility costs, transportation, health care and average incomes to create a composite view of how living expenses are shifting. It also factored in search trends for “cost of living”, using online behaviour to gauge public concern about rising prices.
According to the analysis, New York City topped the list of cities facing the most rapid cost increases, with residents reporting intense affordability pressures despite relatively high salaries. In Manhattan and surrounding boroughs, soaring rent prices have continued to absorb a large share of household income, with one-bedroom apartments averaging more than $4,500 per month and essentials like food and transport adding thousands more in monthly expenses.
San Diego and San Francisco followed closely behind New York, marking two major West Coast cities where rent and living costs are climbing quickly. In these metros, even above-average earnings have failed to keep pace with rising prices for housing, gas, utilities and other necessities, leaving many workers feeling the strain. In San Francisco, the average monthly salary is among the highest in the nation, but high rents and steep expenses still create widespread concern about affordability.
Other large cities like Los Angeles and Seattle also made the top tier of rising living costs, demonstrating that affordability challenges are not confined to a single region. Experts say the trend reflects a combination of limited housing supply, strong demand, higher construction costs and persistent inflation across various sectors of local economies.
Nationwide, the rising cost of living comes as inflationary pressures have eased somewhat compared with the peak years following the COVID-19 pandemic, but prices remain elevated compared to historical norms. In many areas, rent increases continue to outpace wage growth, leaving workers in service sectors, young professionals and even middle-income families struggling to keep pace with the cost of basic necessities.
Economists warn that long-term trends could well reshape migration and economic patterns in the U.S. as residents seek affordability in smaller inland cities or suburban communities where incomes stretch further. Some data also point to pockets of the country with slower price growth or even stabilization, but the overall picture highlights an affordability crisis in many major metros.
As policymakers and business leaders grapple with these headwinds, the cost-of-living issue remains a central concern in debates over housing policy, wage standards and urban planning — with implications for economic competitiveness, social equity and quality of life in America’s most dynamic cities.
