Understanding cost of living differences
Indices use a national average of 100. Housing drives most of the gap between cities, while groceries, transport, and healthcare differ less. Utilities are an exception in places like Hawaii and Alaska.
Salary does not always keep pace. A $75,000 salary in Houston can buy a better lifestyle than $100,000 in San Francisco. The equivalent salary above shows what you would need to match your current standard.
Relocating and real estate
Moving from a high-cost to a low-cost city can dramatically improve buying power. Lower-cost markets also often produce better rental yields, though local job growth and demand still matter more than the index alone.
Estimates for planning only. Actual results depend on your market, lender, and personal circumstances. Confirm important decisions with a qualified professional.
