The Pacific Northwest is on track to experience a drastic rise in cost of living.
LOS ANGELES, Dec. 19, 2017 – Portland, Ore. is expected to see the largest increase in living expenses out of any U.S. city in 2018, found a new study by personal finance website GOBankingRates.
Seattle is expected to see the second-highest increase in home value and the largest increase in rent. The city’s rapid growth and rising costs can be attributed to the recent tech boom, as well as the construction of Amazon’s new headquarters.
To identify cities that are expected to see a notable increase in prices, GOBankingRates analyzed three key factors: the year-over-year median home value forecast, the year-over-year median rent forecast, and the Bureau of Labor Statistics’ Consumer Price Index change between 2014 and 2017.
For more details on methodology and to view the full study, please visit: Cities Where the Cost of Living is Expected to Soar in 2018
Top 10 Cities Where the Cost of Living is Expected to Soar
1. Portland
- Projected change in home value*: 2.81 percent
- Projected change in rent*: 5.34 percent
- Average CPI change 2014-2017: 2.49 percent
2. Seattle
- Projected change in home value: 4.86 percent
- Projected change in rent: 5.73 percent
- Average CPI change 2014-2017: 2.07 percent
3. Denver
- Projected change in home value: 3.52 percent
- Projected change in rent: 4.37 percent
- Average CPI change 2014-2017: 2.36 percent
4. Atlanta
- Projected change in home value: 3.34 percent
- Projected change in rent: 5.08 percent
- Average CPI change 2014-2017: 1.51 percent
5. San Diego
- Projected change in home value: 2.86 percent
- Projected change in rent: 3.91 percent
- Average CPI change 2014-2017: 2.01 percent
6. San Francisco
- Projected change in home value: 1.40 percent
- Projected change in rent: 0.92 percent
- Average CPI change 2014-2017: 2.95 percent
7. Dallas-Fort Worth
- Projected change in home value: 5.58 percent
- Projected change in rent: 2.82 percent
- Average CPI change 2014-2017: 0.87 percent
8. Phoenix
- Projected change in home value: 3.21 percent
- Projected change in rent: 3.87 percent
- Average CPI change 2014-2017: 1.34 percent
9. Tampa, Fla.
- Projected change in home value: 2.92 percent
- Projected change in rent: 2.27 percent
- Average CPI change 2014-2017: 1.22 percent
10. Miami
- Projected change in home value: 1.39 percent
- Projected change in rent: 2.38 percent
- Average CPI change 2014-2017: 1.76 percent
*Projected change in home value and rent price based on year-over-year change for all years 2014 to 2017.
Additional Insights
The Dallas-Fort Worth metro area had the largest predicted increase in home value; Realtor.com anticipates that this area will be the No. 2 housing market in the country next year.
Home prices in Denver will continue to drive costs up in 2018 because of a high demand for homes and low supply of available housing.
Of the cities on the list, San Francisco had the largest increase in the cost of consumer products and services over the last three years.
About GOBankingRates
GOBankingRates.com is a personal finance news and features website dedicated to helping visitors live a richer life. From tips on saving money to investing for retirement or finding a good interest rate, GOBankingRates helps turn financial goals into milestones and money dreams into realities. Its content is regularly featured on top-tier media outlets, including MSN, MONEY, AOL Finance, CBS MoneyWatch, Business Insider and dozens of others. GOBankingRates specializes in connecting consumers with the financial institutions and products that best match their needs. Start your journey toward a rich mind and full wallet with us here.
