Miami metro surpasses New York City in cost of living, government report finds
WEST PALM BEACH, Fla. —
The Miami metro area, which includes Palm Beach County, has overtaken the New York City metro in overall cost of living, according to a new report from the U.S. Bureau of Economic Analysis.
The report uses a national average of 100 to compare prices across regions. The Miami metro scored just over 114, while the New York City metro scored just over 112. The only metro area with a higher score was San Francisco.
This finding has surprised many residents in Palm Beach County.
“We just moved here a couple of months ago, and it’s hard to believe, honestly,” one resident said.
“Yeah, that’s actually pretty surprising. I mean, we were just in New York visiting family in New Jersey and did a few days in the city,” another said.
The Bureau of Economic Analysis calculates these scores using regional price parities, which combine housing, groceries, transportation and other everyday expenses. When all these factors are combined, the Miami metro area surpasses New York City in cost of living.
Jason Rash, a realtor with Admirals Cove Realty, said the rising costs reflect the behavior of people moving to the area.
“The data doesn’t lie, but I think what we’re looking at is human behavior. You’ve got people that can afford it, a large volume of people that can afford it. They’re ready to come here. They’re ready to move here. They’re going to, you know, honestly, that’s just what’s happened. Everybody’s getting priced out,” Rash said.
Rash added that the cost of living, combined with limited land supply and strong demand, is driving up prices across the board.
“Not a lot of people can afford that. I mean, if you’re working at Bolay or Chipotle, or you make $60,000 or $80,000 a year, that is a lot of money to tack on. So everything here is just the cost. It’s carried on to the consumer,” Rash said.
It is important to note that this report does not mean every part of the Miami metro is more expensive than all of New York City. Many areas in Manhattan still have significantly higher costs. The report simply combines everyday expenses across each metropolitan area.
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