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Cost of Living Rises in Tandem with Home Prices

Cost of living is on the rise across the country, according to a report released on Monday by GoBankingRates that lists the top 10 cities with the fastest rate of increase in the cost of living over a one year period between 2016 and 2017.

The study used two main metrics to rank the cities: the increase in the cost of living index—food, rent, utilities, and transportation costs—and the increase in the amount of income that was needed to “live comfortably,” which is defined by the amount of money a household has to make in a year to account for necessities, savings, and discretionary spending.

Number one on the list was Nashville, Tennessee, which saw a cost of living index increase of 8.61 points and a live comfortably annual increase of $9,135 compared to a year prior. This increase is attributed to the rising cost in home prices—which is directly linked with cost of living. Nashville has seen a rise in median home prices of almost 30 percent from April 2015 to April 2017. The study has calculated that one needs a salary of $70,150 to live in Nashville comfortably.

Second on the list was Seattle, Washington, so similarly has seen a spike in home prices over the last two years, with median home prices rising from $475,000 to $630,000 in the same time period. Cost of living index has increased 7.32 points and the live comfortably price tag has increased $3,190.

The third city with the highest cost of living was Louisville, Kentucky, who saw a live comfortably increase of $2,000 between 2016 and 2017 and a cost of living index increase of 4.49 points. You may still only need an estimated $49,000 to live comfortably, but the steep annual increase of the two metrics is the reason this city came in third place. Austin, Texas, was a close runner up with a cost of living index increase of 3.84 points and a live comfortably dollar amount spike of $1,407.

Other cities that made the list, in defending order, were as follows: Jacksonville, Florida; Los Angeles, California; Philadelphia, Pennsylvania; Virginia Beach, Virginia; Indianapolis, Indiana; and New Orleans, Louisiana.

About Author: Staff Writer

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