I think it’s tough to come up with a metric that’s going to work for comparing cost of living accurately so you see a lot of variety in answers. There’s an economic index that’s used (more on the index from the wiki), but that doesn’t really take in to account everything that varies place to place.
For example, do you include real estate (where place like San Francisco are famously expensive, but Alaska probably not so much), do you include the whole city limits? How about suburbs and areas people commute to the city from? Manhattan is going to be more expensive than outlying areas around NYC to live. Are you adjusting for income potential? Wages in the midwest aren’t the same as in the major metropolitan areas.
Some places try to include everything, others just look at what it would actually cost to live there (food, housing, gas, etc). If you’re just looking at basics, places like Hawaii and Alaska are going to be a lot higher because so much has to be transported in and those transport costs are passed along to consumers. So there’s no one list that is “correct”...
General consensus is that places with a lot of people and a lot of money changing hands are generally going to have higher cost of living. There’s more income available and the people who have the cash will pay more for “the good stuff” which trickles higher prices down to everything.
Using fireside’s data it looks like the top 8 are (sorted by cost of living index rather than ID)
1 – New York-Northern New Jersey-Long Island, NY-NJ-PA
2 – Honolulu, HI
3 – San Jose-Sunnyvale-Santa Clara, CA
4 – Los Angeles-Long Beach-Santa Ana, CA
5 – Washington-Arlington-Alexandria, DC-VA-MD-WV
6 – San Francisco-Oakland-Fremont, CA
7 – Fairbanks, AK
8 – San Diego-Carlsbad-San Marcos, CA
But some of those cities are huge, and they seem to be grouping them into even larger groups which will offset a lot of the differences. (for example I don’t imagine Oakland has the cost of living as high as San Francisco, so it may skew those numbers)
Also, from 9 to 29 on that list all have the exact same cost of living index, so I wonder where they got their information that so many areas came out identical.
@marinelife – I think that may be the wrong link (refers to effects of alcohol in the cold)