Major U.S. cities, including New York City and West Coast metros, are facing rising costs of living, a Plasma study reveals.
With New York City and several West Coast metros emerging as hotspots for rising affordability pressures, several major U.S. cities are seeing cost-of-living increases faster than others, according to a new analysis shared with Newsweek.
Pedestrians in front of the Oculus during a winter storm in New York on January 25, 2026. (Bloomberg)The findings come from a study conducted by Plasma, a company that develops stablecoin products and financial infrastructure, that examines how rising costs are reshaping affordability in the nation’s largest urban areas.
Plasma analyzed the 30 most populous US cities using a weighted system that combines inflation data with housing costs, average monthly cost of living and local salary levels. The review included the cost of rent, groceries, utilities, transportation, child care, clothing and vacation expenses.
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To capture public concern, the study also tracked search trends for the term “cost of living” using data from the Keyword Tool. Housing, salary and cost statistics were taken from Numbeo, a crowdsourced database that tracks daily cost metrics.
All data was current as of January 14, 2026, according to Newsweek.
New York City topped the rankingNew York City ranks first among US cities with the highest cost of living concerns. “The Big Apple ranks as the No. 1 city in the U.S. where cost-of-living concerns are prevalent, with more than 26,100 related inquiries per month,” the report said.
Despite an average monthly salary of $5,250, housing costs remain a major pressure.
A one-bedroom apartment in the city center averages $4,564 per month, while essential living expenses total about $1,646. Inflation across the metro area stood at 3.4 percent, raising affordability concerns.
West Coast cities dominate the top fiveSan Diego is second on the list. “While residents of this seaside town may take home an average of $5,759 per month, that hasn’t shielded them from rising costs,” the report noted.
A one-bedroom rent averages $3,206, with monthly living expenses exceeding $1,300.
San Francisco ranks third, though it boasts the highest average monthly salary at $7,508. “Costs remain relentlessly high,” the report said, with average rents at $3,458 and cost of living above $1,600. The city has logged more than 6,200 related inquiries.
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Los Angeles and Seattle round out the top five.
A Plasma spokesperson told Newsweek that the increase in search activity points to widespread concern. “Many Americans are concerned about the cost of living and the level of search demand illustrates the level of concern about rising costs,” the spokeswoman said, adding that economic pressures in one city increasingly affect financial dynamics nationwide.
Prakriti Dev is a reporter at the US desk of Hindustan Times. He covers all US-related developments including politics, crime, sports and infotainment. His earlier experience as an editor focusing on geopolitics also shaped his growing interest in international issues. Exploring culture, conversation, travel and photography where nature finds its sense of life and storytelling.Read more
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