How do you compare the cost of living between two cities?


Quick Answer

Compare the cost of living between two cities by analyzing your personal salary, adding the cost of your personal expenses such as housing and food in the two cities, and then subtracting the expenses from your annual salary. There are several online calculators that provide insight on the differences between living in two different cities based on factors such as housing, utilities, health care, transportation, groceries and annual salary.

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Full Answer

Sites such as CNN Money and Bankrate have calculators that compare the average prices of everything from home prices to haircuts and are very efficient in providing estimates. When moving to a new area, it's important to analyze your annual revenue and expenses to ensure you don't run into any financial difficulties. Areas with high populations or beautiful landscapes tend to be the most expensive areas.

Living in New York is likely going to be more expensive than living in a small town in South Dakota. The cost of living is more expensive in urban areas because with large populations, the demand for living spaces is very high, and landlords can increase rent prices. Rent prices may vary considerably between two different cities; for example, the average monthly rent in New York City can exceed $3,000 as of 2015, while other areas average below $1,000.

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