Compare metropolitan areas by BEA regional price parity—how local prices stack up to the U.S. average. Use these rankings to understand cost-of-living differences across major cities when planning location or expansion.
What this means for your business
Regional price parity tells you how far your dollar stretches before you commit to a headquarters, hire in a new metro, or expand into another state. A market with RPP above 100 costs more for rent, wages, and everyday expenses—often 10–18% above national norms in the priciest coastal metros. That does not automatically make a market bad; high-RPP areas may offer deeper customer pools, talent density, or industry clusters worth the premium.
Founders weighing location should pair RPP with revenue potential and compliance cost. A lower-RPP metro can improve runway if your customers are national or remote, while a high-RPP hub may still win when proximity to clients or investors matters more than rent. Before you register in a new state, compare metro-level costs with our state statistics hub and read our guide on foreign qualification when expanding to a new state.
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Methodology
Regional price parities (MARPP, LineCode 1), 2023, metropolitan statistical areas. Index with U.S. average = 100. Shown when BEA does not return CAINC1 personal income for the batched MSA requests.
Units: Index, U.S. average = 100.
Rankings (selected geographies)
| Rank | Area | RPP index | Gap vs U.S. avg |
|---|---|---|---|
| 1 | San Francisco-Oakland-Fremont, CA (Metropolitan Statistical Area) | 117.55 | +17.55 |
| 2 | Los Angeles-Long Beach-Anaheim, CA (Metropolitan Statistical Area) | 114.75 | +14.75 |
| 3 | Santa Maria-Santa Barbara, CA (Metropolitan Statistical Area) | 113.73 | +13.73 |
| 4 | Oxnard-Thousand Oaks-Ventura, CA (Metropolitan Statistical Area) | 113.69 | +13.69 |
| 5 | Salinas, CA (Metropolitan Statistical Area) | 113.18 | +13.18 |
| 6 | San Jose-Sunnyvale-Santa Clara, CA (Metropolitan Statistical Area) | 113.06 | +13.06 |
| 7 | Santa Cruz-Watsonville, CA (Metropolitan Statistical Area) | 112.77 | +12.77 |
| 8 | Seattle-Tacoma-Bellevue, WA (Metropolitan Statistical Area) | 112.73 | +12.73 |
| 9 | New York-Newark-Jersey City, NY-NJ (Metropolitan Statistical Area) | 112.64 | +12.64 |
| 10 | Miami-Fort Lauderdale-West Palm Beach, FL (Metropolitan Statistical Area) | 112.09 | +12.09 |
| 11 | Napa, CA (Metropolitan Statistical Area) | 111.83 | +11.83 |
| 12 | Urban Honolulu, HI (Metropolitan Statistical Area) | 111.42 | +11.42 |
| 13 | San Luis Obispo-Paso Robles, CA (Metropolitan Statistical Area) | 111.02 | +11.02 |
| 14 | San Diego-Chula Vista-Carlsbad, CA (Metropolitan Statistical Area) | 110.74 | +10.74 |
| 15 | Boston-Cambridge-Newton, MA-NH (Metropolitan Statistical Area) | 110.39 | +10.39 |
Lowest-cost MSAs (selected, 2023)
Not every founder needs a coastal hub. These metros sit well below the U.S. average (100), which can stretch payroll and overhead when customers are distributed nationally:
| Rank | Area | RPP index | Gap vs U.S. avg |
|---|---|---|---|
| 1 | Decatur, IL (Metropolitan Statistical Area) | 84.23 | −15.77 |
| 2 | Danville, IL (Metropolitan Statistical Area) | 85.08 | −14.92 |
| 3 | Beckley, WV (Metropolitan Statistical Area) | 86.01 | −13.99 |
| 4 | Jackson, TN (Metropolitan Statistical Area) | 86.54 | −13.46 |
| 5 | Rome, GA (Metropolitan Statistical Area) | 87.12 | −12.88 |
Notable gap: The spread between San Francisco (117.55) and Decatur (84.23) is more than 33 index points—roughly a one-third difference in local price levels. Factor that into hiring budgets and office costs before you choose a metro.
Regional price parities — top MSAs (2023)
Data sources
FAQs
What is Metro Area Regional Price Parity Rankings: Top MSAs (2023)?
It ranks U.S. metropolitan areas by Bureau of Economic Analysis (BEA) regional price parity (RPP) for 2023.
RPP is an index (U.S. average = 100) that shows how local prices compare to the nation—useful for comparing cost environments across cities.
Learn More...
The page uses BEA table MARPP (regional price parities by MSA) where available for the selected year.
Higher values mean prices in that metro are above the national average; lower values mean below average.
Pair RPP with income and other data when choosing where to operate or expand.
How often is this data updated?
BEA Regional data are updated on BEA’s release schedule; this page is refreshed when new vintages are incorporated.
Learn More...
See the page date and BEA documentation for the reference year of the estimates.
What data sources are used?
Bureau of Economic Analysis Regional Economic Accounts via the BEA API (MARPP, MSA level).
Learn More...
Official methodology and definitions are published by BEA.
