Where cost of living increased and decreased most

Where cost of living increased and decreased most

While inflation metrics may show broad trends across the U.S., costs of individual necessities like housing, groceries, utilities, transportation and medical expenses may see wider price volatility from city to city. Many dynamics may help influence price differentials across the country, such as geographical location—which may impact the availability and import cost of raw materials—and demographics, which often influences demand for goods and services as well as the supply of labor. Regardless of the cause, the local cost of living has the potential to change rapidly. And when costs rise or fall in such a manner, they can then have ripple effects through the local economy. Therefore residents, local businesses and governing bodies alike should be alert to substantial cost of living changes to anticipate the impact.

With this in mind, SmartAsset compared relative cost of living data across 240 U.S. cities between 2023 and 2024 to identify places where costs are changing most suddenly.

Key Findings

• The cost of living increased by over 10% in these two cities. Peoria, Illinois, saw the highest increase in cost of living at 12.8%. Peoria previously enjoyed a significantly lower cost of living than average, but those costs are quickly rising. Queens, New York, also saw an 11.5% increase in the cost of living, which now makes it about 50% more expensive than the average U.S. city.
• Costs in Lima, Ohio, came down most year over year. Lima residents saw the biggest drop in cost of living at -4.4% even after accounting for annual inflation. This takes Lima from par with national average in 2023 to an estimated 7.2% less expensive than average in 2024.
• The cost of living dropped in 14 cities. Only about 6% of cities with available data saw prices drop year over year. In addition to Lima, Ohio, this includes Plano, Texas, (-2%); Colorado Springs, Colorado, (-1.9%); Alexandria, Virginia, (-1.6%); Pueblo, Colorado, (-1.6%); Spokane, Washington, (-1.2%); and Indianapolis (-0.1%).

Top 10 Cities Where Cost of Living Increased Most

Cities are ranked based on the relative increase in prices for essential goods and services over one year.

1. Peoria, Illinois
2. Queens, New York
3. Tacoma, Washington
4. Vero Beach-Indian River, Florida
5. McAllen, Texas
6. Athens, Georgia
7. Flagstaff, Arizona
8. Asheville, North Carolina
9. Harlingen, Texas
10. Great Falls, Montana

Top 10 Cities Where Cost of Living Decreased Most

Cities are ranked based on the relative increase in prices for essential goods and services over one year.

1. Lima, Ohio
2. Hampton Roads-SE Virginia, Virginia
3. Plano, Texas
4. Colorado Springs, Colorado
5. Alexandria, Virginia
6. Pueblo, Colorado
7. Bismarck-Mandan, North Dakota
8. Spokane, Washington
9. Utica-Rome, New York
10. Mason City, Iowa

Data and Methodology

Using data from the Council for Community and Economic Research (C2ER), SmartAsset compared relative cost of living data for essentials—including housing, utilities, transportation, medical costs and more—across 240 cities with available data. Average cost data for 2023 was compared to that of 2024 after adjusting relative cost rankings for inflation to determine the percent increase in dollars needed to cover the designated basket of essentials. Relative costs to the national average were also observed.