Cost of Living in the USA vs UK: What to Know Before You Move 🇬🇧➡️🇺🇸

When planning a big international move, one of the first questions people ask is: “How much will my living expenses change?” For British nationals thinking about moving to United States from UK, understanding the cost of living is essential for setting a realistic budget.

In this guide, we’ll break down the major expenses — from housing and groceries to healthcare and transport — and compare the cost of living in the USA vs UK.

🏡 Housing Costs

One of the biggest differences between the UK and the USA is the cost (and style) of housing.

United States: Housing varies dramatically by state and city. New York City, San Francisco, and Los Angeles are among the most expensive, where renting a one-bedroom apartment can cost $2,500–$3,500 per month (£2,000–£2,800). In smaller cities or suburban areas, the same apartment might cost $1,200–$1,800 (£950–£1,400). Buying property can also be cheaper in some parts of the USA compared to the UK.
United Kingdom: London is the closest comparison to New York in terms of rent, where a one-bedroom flat averages £2,000 per month. Outside London and the South East, housing costs are considerably lower.

👉 Bottom line: If you’re relocating to states like Texas, Georgia, or the Midwest, you’ll often find much more space for your money compared to the UK.

🛒 Groceries and Daily Essentials

Everyday shopping is another key factor when comparing UK vs USA living expenses.

USA: Groceries are often slightly cheaper, especially when bought in bulk at stores like Walmart or Costco. However, imported goods and fresh produce can be pricier in major cities.
UK: Supermarkets such as Tesco, Aldi, and Sainsbury’s provide good value for money. On average, food costs in the UK are 5–10% lower than in the US.

🚑 Healthcare Costs

Perhaps the biggest adjustment for British expats moving to the USA is the healthcare system.

USA: There is no free public healthcare. Expats must purchase private health insurance, which can range from $400–$800 (£320–£640) per month per person, depending on coverage. Without insurance, medical bills can be extremely high.
UK: The NHS provides free healthcare funded by taxation, with only minor charges for prescriptions or specialist services.

👉 For UK expats, this is one of the largest cost increases when relocating to the USA.

🚗 Transport

Transport costs depend on your lifestyle and location.

USA: In most American cities, owning a car is essential. Petrol is cheaper — around $3.50 per gallon (£0.75 per litre), compared to £1.45 per litre in the UK. Insurance, maintenance, and parking costs vary widely by state. Public transport in cities like New York, Boston, or Chicago is reliable, but outside of these, driving is usually unavoidable.
UK: Public transport is more widespread, especially in London, Manchester, and other major cities. Petrol prices are higher, but the need for a car is less.

🎓 Education

USA: Public schools are generally free but funded locally, so quality varies by area. Private schooling costs $15,000–$30,000 (£12,000–£24,000) per year, and universities can be $30,000–$60,000 annually.
UK: Public education is free and more consistent in quality nationwide. Universities are subsidised, with tuition for UK students capped at £9,250 annually.

👉 Families relocating to the USA should carefully research school districts before choosing where to live.

💰 Overall Cost of Living Comparison

According to recent data, consumer prices in the USA are about 23% higher than in the UK, especially in healthcare and housing in major cities. However, salaries in the USA are also higher on average, which can balance out the difference.

If you’re relocating for work, employers may offer health insurance and relocation packages to help with costs. Retirees and families, however, will need to factor in higher living expenses when making the move.

🌎 Plan Your Move with Advance Moves

When considering the cost of living in the USA vs UK, it’s also vital to plan your actual move carefully. Advance Moves makes international relocation easier with their Quick Quote system, helping you: