The bi-annual report compares over 400 individual prices across 160 products and services, including food, drink, clothing, household supplies, utility bills, private schools, and recreational costs. All cities are compared with a base city of New York, which has a cost of living index set at 100.
One factor the EIU chooses not to use when creating the cost of living index for each city is accommodation. Roxana Slavcheva, a Cities Economist at EIU, explained to Business Insider: "We supply prices of rented accommodation for reference, but consider that to be a separate and relatively subjective item to price since choice in apartments and houses is dictated by taste, income, and family size."
We decided to see what it takes to become one of the wealthiest of the wealthy in the priciest US cities.
Using an interactive tool from The New York Times, we gathered the annual household income required to be in the top 1% (and top 5%, for comparison) of earners in the 11 most expensive US cities.
Note that we did not include Honolulu, Hawaii — which tied as the ninth most expensive US city — due to insufficient data.
How do you stack up?